Key Takeaways:
• Birr 2.34tn — proposed federal budget for Ethiopia’s 2026/27 fiscal year.
• Nearly Birr 500bn — increase over the Birr 1.9tn budget endorsed for 2025/26.
• USD 14.7bn — estimated dollar value of the proposed 2026/27 federal budget.
• Council of Ministers unanimously approved the proposal and forwarded it to Parliament.
• Budget was prepared to fund national development, transformation programmes and institutional mandates.
• Parliament is expected to deliberate and approve the budget before the Ethiopian fiscal year ends.
• USD 21.5bn — 2024/25 federal budget after supplementary approval remained higher in dollar terms.
Market Impact:
The Birr 2.34tn proposal would raise Ethiopia’s nominal federal spending sharply from the Birr 1.9tn budget approved for 2025/26. In dollar terms, however, the planned budget is only marginally above the current year’s USD 14bn working budget, underlining the importance of currency effects in fiscal comparisons.
For businesses, the larger Birr allocation points to continued public-sector demand across government institutions, development programmes and social transformation spending. Parliament’s approval process will determine the final spending envelope before the Ethiopian fiscal year closes early next month.
Key Numbers:
Birr 2.34tn — Proposed 2026/27 federal budget — headline spending plan
Birr 1.9tn — 2025/26 federal budget — comparison base
Nearly Birr 500bn — Nominal increase — shows expanded Birr spending
USD 14.7bn — Dollar value of 2026/27 proposal — external comparison measure
USD 14bn — Current year working budget — near-term fiscal benchmark
USD 21.5bn — 2024/25 budget including supplementary approval — higher dollar comparator
EFY 2019 — Ethiopian fiscal year reference — domestic budget calendar
Business Signal:
Ethiopia’s cabinet is expanding nominal federal spending while dollar-based comparisons show a more constrained fiscal picture for businesses exposed to FX, imports and public procurement.