Ethiopia Approves 2.34 Trln Birr Draft Budget for 2026/27

June 10, 2026

Mintesinot Nigussie

Ethiopia’s Council of Ministers has approved a draft federal budget of 2.34 trillion birr for the 2026/27 fiscal year, advancing one of the country’s largest spending plans as authorities seek to sustain ongoing macroeconomic reforms and finance key development priorities.

The proposed budget, endorsed during the cabinet’s 56th regular meeting on Tuesday, covers recurrent expenditure, capital projects, subsidies to regional states and support for programmes linked to the Sustainable Development Goals.

According to a statement issued by the Office of the Prime Minister, the draft budget was prepared based on Ethiopia’s medium-term macroeconomic and fiscal framework covering the 2026/27 to 2030/31 period, alongside targets outlined in the government’s 2026/27 to 2028/29 development and investment plan.

Cabinet members also approved the medium-term macroeconomic and fiscal framework, which the government said was designed to reinforce gains recorded under the country’s ongoing economic reform programme.

The government said recent reform measures have helped ease some economic pressures while strengthening macroeconomic fundamentals.

Preparation of the draft budget also considered programme budget implementation during the current fiscal year, expected social and economic transformation priorities, the financial capacity of the federal government and expenditure requirements of public institutions.

Following discussions, the Council of Ministers unanimously agreed to submit the draft budget proclamation to the House of Peoples’ Representatives with additional recommendations incorporated during deliberations. The proposed federal budget amounts to 2.339 trillion birr.