The remaining financing requirement will be met through a combination of external loans, grants, and the issuance of government treasury bonds, according to officials at the Ministry. During the budget hearing, lawmakers voiced support for the administration’s fiscal framework, citing the need to sustain macroeconomic stability and fund critical development programs.
Prime Minister Abiy Ahmed (PhD) expressed confidence in the government’s ability to fully finance the proposed budget, attributing it to a rebound in economic productivity, ongoing technical support from the International Monetary Fund (IMF), and expected multilateral inflows. He pointed in particular to a one-billion-dollar assistance package from the World Bank, which is slated for a board decision today.
This comes amid a challenging macroeconomic environment, where inflationary pressures and external debt vulnerabilities remain key concerns. The government’s growing dependence on tax revenue highlights efforts to strengthen domestic resource mobilization, although it also raises questions about the burden on the formal economy.
The budget’s approval sets the stage for implementing key reforms and development priorities in the coming fiscal year, with officials promising enhanced oversight and improved public service delivery.