The Council of Ministers has referred the draft Federal Government budget for the 2026/27 fiscal year to the House of Peoples’ Representatives, proposing a total allocation of Birr 2.34 trillion.

The proposed budget represents an increase of about Birr 400 billion compared to the current fiscal year’s budget.

According to the Office of the Prime Minister, the Council of Ministers deliberated on the draft budget during its 56th regular meeting held on Tuesday, June 9, 2026.

The budget proposal was prepared in line with the objectives set under the 2026/27–2028/29 Development and Investment Plan, which forms part of Ethiopia’s Ten-Year Perspective Development Plan. It was also developed based on the Medium-Term Macroeconomic and Fiscal Framework covering the 2026/27–2030/31 period.

The preparation of the draft budget took the performance of the 2025/26 program budget as a baseline. It also considered the country’s future social and economic transformation priorities, the government’s financial capacity to achieve its targets, and the expenditure needs of federal executive organs in light of their respective mandates and responsibilities.

Accordingly, a total budget of Birr 2,339,268,126,738 was presented to the Council for allocation to recurrent expenditures, capital expenditures, subsidies to regional governments, and support for the implementation of sustainable development goals.

After deliberating on the proposed 2026/27 Federal Government draft budget proclamation, the Council unanimously decided to incorporate additional inputs and forward the draft to the House of Peoples’ Representatives for consideration.

Source: Sheger FM 102.1