Ethiopia’s cabinet has approved a nearly 2 trillion birr ($15 billion) budget for the 2025/26 financial year, marking a 31% increase from the previous year.
This record-high budget will focus on supporting national security, boosting production and productivity, and providing assistance to those affected by disasters.
The budget will now be sent to parliament for approval.
Ethiopia recently reached a staff-level agreement with the International Monetary Fund on the third review of its $3.4 billion loan program, as part of its ongoing economic reforms, including currency floatation and debt restructuring.
The World Bank is also supporting Ethiopia’s economic reforms with a $1.5 billion financing package to promote sustainable and inclusive growth, which includes a $1 billion grant and $500 million concessional credit from the International Development Association.
This support aims to help Ethiopia transition to a more inclusive economy, strengthen its financial sector, expand trade options, and improve fiscal transparency.
