The Council of Ministers has approved a draft federal budget nearing two trillion birr for the 2025/26 fiscal year, advancing it to Parliament for legislative review. Endorsed during it’s recent session on Thursday, the proposal outlines allocations across recurrent and capital expenditures, regional transfers, and targeted investments directed at accelerating progress toward the Sustainable Development Goals (SDGs). Structured within the Medium-Term Macroeconomic and Fiscal Framework, the budget aligns with national priorities outlined in the Ten-Year Development Plan. It places a strong emphasis on internal security, boosting productivity, and delivering humanitarian aid to communities impacted by conflict and climate-related displacement. The draft is grounded in a performance review of the previous year’s program-based budget and is said to recalibrate fiscal strategies in line with current economic conditions. Government sources note efforts to enhance revenue through tax reforms and external financing to support planned initiatives. Coming at a time of persistent macroeconomic challenges including inflation and regional instability the proposed budget signals a policy shift toward fiscal sustainability and inclusive growth. If ratified, it will shape federal spending and development priorities in the year ahead.
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