The federal government has submitted a draft budget totaling Birr 1.93 trillion for the 2025/26 fiscal year to the House of People’s Representatives during its 35th regular session today.

Finance Minister Ahmed Shide presented the draft budget, stating that it has been formulated in alignment with ongoing macroeconomic reforms and current fiscal policy objectives. 

Key priorities outlined in the proposed budget include the continuation of ongoing development projects, negotiations for debt restructuring to improve the sustainability of government debt, and the continuation of social spending subsidies aimed at cushioning the public from the effects of economic reforms.

The minister emphasized that the 2025/26 draft budget reflects a 34.4 percent increase compared to the previous fiscal year. He also indicated that over 80 percent of the expenditure is expected to be financed through domestic revenue.

To meet revenue targets, the government plans to introduce new tax sources and enhance existing revenue systems. A total of Birr 1.5 trillion is projected to be collected in the upcoming fiscal year.

Minister Ahmed urged all budget-allocated institutions to use funds responsibly and for their intended purposes.

The draft budget has been forwarded to the Standing Committee on Planning, Budget, and Finance for further scrutiny and deliberation.

Source: Ethiopian News Agency