Ethiopian Informer
ADDIS ABABA (EI) — The Ethiopian government has proposed a record budget of more than 2.33 trillion Ethiopian birr (ETB) for the upcoming fiscal year.
Ethiopia’s Finance Minister Ahmed Shide presented the proposed record annual federal government budget to the Ethiopian House of Peoples’ Representatives on Thursday, amounting to more than 2.33 trillion Ethiopian birr (about 14.84 billion U.S. dollars).
Ahmed told members of parliament that the proposed annual federal government budget, which marks a notable increase compared to the current fiscal year’s budget of about 1.93 trillion birr, was prepared by taking into account the impacts of the Middle East conflict on Ethiopia’s economy.
The draft budget bill, which was endorsed by the Ethiopian Council of Ministers with a unanimous vote on Tuesday, is expected to be formally ratified by the lower chamber of the country’s parliament in the coming weeks after deliberation.
Meanwhile, the finance minister announced that Ethiopia’s economy is projected to grow by 10.1 percent in the upcoming 2026/2027 Ethiopian fiscal year, starting on July 8.
He said that despite indications showing that the Middle East conflict would have a negative impact on Ethiopia’s development trajectory, the country’s economy is forecast to register a 10.1 percent growth during the 2026/2027 fiscal year.
He attributed the projected growth to anticipated positive performances across key economic sectors, such as export trade, foreign direct investment, and improved agricultural productivity, among others. He said the industrial sector is projected to grow by 12.6 percent, while the agriculture and service sectors are expected to expand by 7.6 percent and 9.9 percent, respectively.
The finance minister also noted that the country’s economy is on track to achieve the projected 10.2 percent growth during the current 2025/2026 fiscal year, ending on July 7.
According to Ahmed, Ethiopia’s economy registered an average of 6.8 percent annually between 2020 and 2024 and a 9.2 percent growth last fiscal year.
He said the country registered “strong economic performance and results by effectively overcoming internal and external pressures.” He attributed these achievements to the successful implementation of the ongoing national economic reform program and the ten-year development plan.
(Photo shows Ethiopian 200 Birr banknotes. Photo credit — Amanuel Sileshi/Bloomberg)
