Ethiopia’s Prime Minister Abiy Ahmed on Thursday said the cabinet has approved a nearly 2 trillion birr ($15 billion) budget for the 2025/26 financial year starting in July.
According to a statement from the prime minister’s office said the budget represents a 31% increase from the previous year.
The East African nation, which struck a four-year deal with the International Monetary Fund last July, is in the midst of far-reaching economic reforms, including the floatation of its birr currency and a push to restructure its debt.
Last week Ethiopia and the IMF reached a staff-level agreement on the third review of the $3.4 billion loan programme from the lender.
The 2025/26 budget will support national security, increase production and productivity, and help people affected by disasters, the prime minister’s office said in a statement, adding that it will be sent to the parliament for approval.
In June last year, Ethiopia set spending for 2024/25 at 971.2 billion birr, and in November said it planned to spend a further 581.98 billion birr to help subsidise costs of fertiliser, oil, fuel, and medicine.
