The Ethiopian government has proposed a record budget of about one trillion birr for the 2024/25 fiscal year, a 25% increase over the previous year’s budget.

In a statement from the Prime Minister’s Office, it was announced that the Council of Ministers approved the approximately one trillion birr budget at their latest session. This would mark the first time Ethiopia’s national budget has reached the one trillion birr threshold.

The government previously allocated 801 billion birr for the 2023/24 fiscal year, which was roughly on par with the prior year’s budget.

The proposed increase in spending for the upcoming 2024/25 fiscal year represents a significant boost in the government’s resources and is intended to support continued economic development and social programs across the country.

However, some economists and financial analysts have expressed skepticism about the government’s ability to effectively utilize and account for such a large influx of funds. Questions remain about how the additional resources will be prioritized and what impact the expanded budget will have on Ethiopia’s fiscal sustainability in the long run.

The budget proposal will now be submitted to the parliament for review and approval before the start of the new fiscal year on July 1, 2024.