Ethiopia’s House of People’s Representatives has approved a 2.34 trillion birr federal budget for the 2019 Ethiopian fiscal year (2026/27), following a majority vote in Parliament.
The budget was endorsed after the Standing Committee on Planning, Budget and Finance Affairs presented its recommendations, stating that the spending plan reflects the country’s fiscal capacity and aligns with the government’s ongoing domestic economic reform agenda.
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According to the committee, the government expects to finance a significant portion of the budget through domestic revenue, targeting 1.49 trillion birr in tax collections. Achieving this goal will require continued digitization of tax administration, the establishment of more efficient tax collection systems, and reforms to address policy gaps in the tax framework.
The committee also noted that federal budget transfers to regional governments were determined based on the subsidy allocation formula approved by the House of Federation. It said the budget is designed to promote greater fiscal self-reliance while supporting public welfare and equitable development across the country.
In its report, the committee raised concerns over weaknesses in public financial management, citing findings from the Auditor General that indicate continued violations of financial laws and regulations in some government institutions.
It called on all budgetary institutions to ensure that public funds are used for their intended purposes, improve efficiency in expenditure, and strengthen accountability for irregular budget utilization.
The committee also highlighted delays in the implementation of numerous road infrastructure projects, noting that the setbacks have resulted in additional costs and governance challenges. It urged the relevant authorities to improve project execution and ensure the timely payment of compensation to citizens whose land has been acquired for road construction.
Following deliberations, the House of People’s Representatives approved the 2.34 trillion birr federal budget by a majority vote, clearing the way for implementation in the upcoming fiscal year.
