Addis Ababa: Ethiopia’s draft budget for the upcoming 2025/2026 fiscal year is set to play a significant role in ensuring the successful continuity of the country’s comprehensive macroeconomic reforms, according to Finance Minister Ahmed Shide. He announced the details of the budget during the 35th regular session of the House of People’s Representatives, highlighting its critical alignment with Ethiopia’s Ten-Year Perspective Plan (2021-2030).

According to Ethiopian News Agency, the draft budget for the 2018 Ethiopian Fiscal Year (EFY) is 1.93 trillion Birr. The minister emphasized that the budget reflects a strong commitment to long-term development goals. The projected revenue for 2018 EFY stands at 1.5 trillion Birr, marking a notable 62 percent increase compared to the previous fiscal year’s estimated total revenue.

Ahmed Shide elaborated on the government’s preparations to implement planned reforms in tax policy and tax administration, aimed at achieving the targeted tax revenue. Of the total draft budget, 61 percent is allocated to recurrent expenditures, representing a 48.1 percent growth compared to the current fiscal year’s recurrent budget.

Additionally, the capital budget allocation is set at 415 billion Birr, constituting 22 percent of the total budget. This allocation reflects an increase of 72 billion Birr compared to the 2017 EFY. The Finance Minister noted that the overall budget increase is primarily attributed to rising expenditures linked to the implementation of macroeconomic reforms.

Ahmed stressed the budget’s crucial role in the successful continuation of these reforms and urged institutions to utilize their allocated funds effectively and economically. He called on all relevant bodies to ensure the budget’s successful utilization for its intended purposes.