House Approves about 2.34 Trillion Birr Budget for 2019 Fiscal Year

Addis Ababa, July 7, 2026 —The House of People's Representatives (HPR) has unanimously approved a 2.339-trillion Birr budget for the 2019 Ethiopian Fiscal Year.

HPR Plan, Budget, and Finance Affairs Standing Committee Chairperson, Desalegn Wedaje, presented the committee's report and resolution to the floor. 

Of the total approved budget, 1.49 trillion Birr will be generated from tax revenues, while 93.7 billion Birr is slated to be covered by loans and grants from development partners, and 320 billion Birr will be financed through domestic borrowing, he explained.

The Chairperson stated that the overall fiscal deficit is maintained at a mere 1.4 percent of the Gross Domestic Product (GDP), a clear reflection of the government's strategic policy orientation toward structural macroeconomic stabilization.

Under the resource allocation framework, the lion's share of 30 percent is designated for education, road infrastructure, health, agriculture, energy expansion, and urban development, while 187.3 billion Birr, representing 15.1 percent, is allocated as budgetary subsidies to regional states.

This subsidy allocation reflects an increase of 28.4 billion Birr or 17.8 percent compared to the preceding fiscal year.

Over the last five years, Ethiopia's federal budget has grown significantly to absorb macroeconomic shifts and sustain national development initiatives. The year-on-year development in numbers and percentage growth reflects this steady fiscal expansion.

In the 2021/22 fiscal year, the federal government budget stood at 561.67 billion Birr, which represented an 18 percent increase compared to the previous fiscal year. This initial allocation was later extended by a 122 billion Birr supplementary budget to handle post-conflict recovery and humanitarian needs.

The budget grew to 786.61 billion Birr for the 2022/23 fiscal year, marking an increase of approximately 40 percent over the previous year's initial baseline. The 2023/24 fiscal year saw a more modest growth rate of 1.9 percent, with the total budget adjusting slightly to 801.65 billion Birr to focus on completing existing projects and implementing fiscal consolidation measures.

A major upward shift occurred during the 2024/25 fiscal year, when the initial budget rose to 971.2 billion Birr, showing a 21.1 percent growth compared to the previous year. This was further expanded by a historic 581.98 billion Birr supplementary budget later in the year to support the implementation of comprehensive macroeconomic reforms.

Building on this momentum, the 2025/26 fiscal year budget experienced a massive surge to 1.93 trillion Birr, representing a nearly 99 percent increase over the previous year's initial budget to fully accommodate structural adjustments and a market-determined foreign exchange system.

This trajectory directly sets the stage for the newly approved 2019 fiscal year budget of 2.34 trillion Birr, which maintains a strong upward path with an increase of 411.6 billion Birr, or 21.3 percent, over the 2018 fiscal year.