The decision was taken unanimously during the 42nd ordinary session of the fourth year of the current mandate of the Parliament.

The amount reflects an increase of 34.4 per cent compared to what was allocated in 2024.

Officials indicated that the fiscal plan was developed in line with the macroeconomic reform agenda and fiscal policy adjustments of the government.

According to official sources, it prioritizes the progress of existing development projects, the maintenance of social protection subsidies and ensuring the sustainability of the country’s debt by continuing restructuring negotiations with creditors.

More than 80 per cent of approved expenditure will be financed from internal revenue, while the federal government plans to strengthen its fiscal capacity by expanding the tax base with the introduction of new sources of revenue and strengthening the current tax collection system.

Earlier, Prime Minister Abiy Ahmed presented to the legislature the report on government management in fiscal year 2024-2025, as well as projections for the new period starting next week, according to the Ethiopian calendar.

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