Ethiopia's cabinet has approved a nearly 2-trillion birr (R265.12bn) budget for the 2025/26 financial year starting in July, a 31% increase from the previous year, the prime minister's office said on Thursday.
The East African nation, which struck a four-year deal with the International Monetary Fund (IMF) last July, is in the midst of far-reaching economic reforms, including the floatation of its birr currency and a push to restructure its debt.
Last week Ethiopia and the IMF reached a staff-level agreement on the third review of the $3.4bn (R60.83bn) loan programme from the lender.
The 2025/26 budget will support national security, increase production and productivity, and help people affected by disasters, the prime minister's office said in a statement, adding that it will be sent to the parliament for approval.
In June last year Ethiopia set spending for 2024/25 at 971.2-billion birr (R128.74bn), and in November said it planned to spend a further 581.98-billion birr (R77.15bn) to help subsidise costs of fertiliser, oil, fuel and medicine.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.