The Council of Ministers, in its 56th regular session held yesterday, June 9, 2026, extensively discussed and unanimously approved decisions regarding the Medium-Term Macroeconomic and Fiscal Framework as well as the 2019 Ethiopian Fiscal Year (EFY) Federal Government Draft Budget Proclamation.
The Council first deliberated on the Medium-Term Macroeconomic and Fiscal Framework spanning from 2019 to 2023 E.C. It was highlighted during the meeting that since the implementation of the comprehensive macroeconomic reform, the Ethiopian economy has been steadily extricating itself from various challenges, and its foundations are strengthening significantly.
This newly presented framework is designed to further consolidate the encouraging results achieved through the economic reform. Based on core macroeconomic and fiscal assumptions, the framework is set to serve as the baseline for the preparation of the 2019 EFY federal government budget. Following a broad discussion on its necessity, the Council unanimously voted to put the framework into operation.
Subsequently, the Council turned its attention to the highly anticipated 2019 EFY Federal Government Draft Budget Proclamation. This draft budget was prepared based on the targets set out in the 2019–2021 Development and Investment Plan, which is part of the Ten-Year Perspective Development Plan, as well as the 2019–2023 Medium-Term Macroeconomic and Fiscal Framework.
It also took into account the performance of the 2018 EFY program budget. Furthermore, it was formulated by evaluating future social and economic transformation directions, government goals, national financial capacity, and the specific expenditure requirements of executive organs in relation to their mandated missions and responsibilities.
Accordingly, a total budget of 2,339,268,126,738 Birr (two trillion, three hundred thirty-nine billion, two hundred sixty-eight million, one hundred twenty-six thousand, seven hundred thirty-eight Birr) has been proposed to the Council. This budget is allocated to cover recurrent expenditures, capital expenditures, subsidies to regional governments, and support for the execution of Sustainable Development Goals (SDGs).
The budget is recognized as vital for achieving the government's large-scale national development targets and ensuring the comprehensive benefit of the public.
Following a detailed and in-depth deliberation on the presented 2019 EFY Federal Government Draft Budget Proclamation, the Council of Ministers incorporated valuable inputs and unanimously voted to forward the draft proclamation to the House of Peoples' Representatives. The House of Peoples' Representatives is expected to review and officially approve this massive draft budget in the coming weeks.
