The Council of Ministers has approved a budget of nearly one trillion birr (USD 17.4 billion) for the next fiscal year starting July 2024. This represents an increase of around 25 percent from last year's budget.
While the new budget is significantly higher than last year, the year-on-year growth rate of 25 percent is a little higher than Ethiopia's inflation rate of 23.3 percent recorded in April 2024.
In US dollar terms, the approved budget is about 2.4 billion dollars higher than the almost USD 15 billion budget for the current fiscal year ending this June.
The budget proposal will now go to Parliament for final approval before it can be implemented. If approved, it will be the largest budget in Ethiopia's history as the government looks to fund development projects and support economic growth.
