Ethiopia’s Ministry of Finance has come under intense scrutiny after an audit by the Office of the Federal Auditor General (OFAG) revealed the collection of more than 15.1 billion birr in revenues not included in the 2023/24 budget.

The findings highlight systemic gaps in transparency and raise questions about adherence to the Financial Governance Proclamation, which requires all expected revenue to be captured within the national budget.

Beyond off-budget collections, the audit details a longstanding debt burden. Obligations linked to the privatization of state-owned enterprises exceed 3.09 billion birr, with 2.88 billion birr owed by eleven institutions, five of which have unpaid balances for over ten years. Additional delays affect payments spanning five to ten years, including loans and dividends such as 70.1 million birr from Guinness Overseas Holdings and 44.4 million birr from Ethiopian Business Works Corporation.

Operational inefficiencies extend across 29 budgetary units, where chronic shortages surpass 6.3 million birr. The audit flagged the Addis Ababa Airport Customs Commission branch for a tenfold increase in discrepancies. Treasury bill reporting also showed gaps exceeding 8 billion birr between recorded figures and consolidated accounts, highlighting weaknesses in debt registration.

Compounding these challenges, the report notes underreporting of international donor funds in the Integrated Budget and Expenditure System (IBEX), limiting the accuracy and completeness of national financial statements and complicating external audits.