Addis Abeba—Ethiopia’s Council of Ministers approved a supplementary budget of 581.98 billion birr for the 2024/25 fiscal year, raising the total budget to over 1.5 trillion birr. The increase, equivalent to 56% of the original 971.2 billion birr budget passed in July 2024, addresses projected revenue shortfalls and additional expenditure needs. This supplementary request aligns with Ethiopia’s revised medium-term macroeconomic framework (2024-2028) under the Homegrown Economic Reform agenda. Key reforms, including transitioning to a market-based currency system, have led to increased financial strain, particularly for civil servants. The macroeconomist attributed the request to salary adjustments of up to 332% for 2.4 million public servants, aimed at offsetting rising living costs. Despite the announcement, many employees have yet to see these adjustments reflected in their pay. The proposal awaits final endorsement by parliament.
