Ethiopia: public finances

How big is Ethiopia's federal budget for 2026/27?

Ethiopia's federal budget for fiscal year 2026/27 (EFY 2019) is Birr 2,339.3 billion, according to the Ministry of Finance federal budget proclamation tables. Recurrent spending is Birr 1,236.5 billion, capital spending Birr 568.3 billion, subsidies to regions Birr 520.6 billion and support for the Sustainable Development Goals Birr 14.0 billion.

Domestic revenue is budgeted at Birr 1,611.8 billion, of which tax revenue is Birr 1,491.4 billion, with Birr 204.8 billion in external grants. The rest is borrowed: Birr 193.7 billion abroad and Birr 329.0 billion at home. The budget for 2025/26 was Birr 1,651.9 billion. The fiscal year runs from 8 July to 7 July; the budget proclamation lists every ministry's allocation.

Official sources: Ministry of Finance: 2019 EFY federal budget proclamation, part two (Excel) · Ministry of Finance: 2019 EFY federal budget proclamation, part one (PDF) · Ministry of Finance: budget documents

How much public debt does Ethiopia have?

Ethiopia's public sector debt was US$52,121.32 million at 31 December 2025, down 2.02% from US$53,196.01 million at the end of June 2025, according to the Ministry of Finance Public Sector Debt Statistical Bulletin No. 56. External debt was US$34,456.17 million (66.11%) and domestic debt US$17,665.15 million (33.89%).

The total includes debt of state-owned enterprises, which account for 23.39%. The ministry converts domestic birr debt into dollars at the end-period exchange rate, so the birr's fall after the July 2024 exchange rate reform cut the dollar value of domestic debt sharply; total public debt was US$65,953.71 million in June 2024 on the same basis. The bulletin is published quarterly on the ministry site.

Official sources: Ministry of Finance: Public Sector Debt Statistical Bulletin No. 56 (PDF) · Ministry of Finance: debt bulletins

How much does Ethiopia spend on debt payments?

Ethiopia's federal budget for 2026/27 sets aside Birr 542.1 billion for public debt payments, according to the Ministry of Finance budget proclamation tables. Of this, Birr 293.3 billion is for external debt (Birr 188.0 billion principal and Birr 105.3 billion interest) and Birr 248.7 billion for domestic debt (Birr 26.1 billion principal and Birr 222.7 billion interest).

Debt payments are counted within recurrent spending and are close to a quarter of the whole federal budget of Birr 2,339.3 billion. External payments are budgeted in birr, so they rise when the birr weakens. They are also shaped by the debt treatment Ethiopia is negotiating with its creditors under the G20 Common Framework.

Official sources: Ministry of Finance: 2019 EFY federal budget proclamation, part two (Excel)

How much tax does Ethiopia collect?

Ethiopia's federal government collected Birr 579.6 billion in tax revenue in the first half of fiscal year 2025/26, 52.7% of the annual target of Birr 1,099.1 billion and 62.7% more than a year earlier, according to the Ministry of Finance mid-year budget review. Total revenue and grants were Birr 704.7 billion.

Corporate income tax collections rose 92.2% after a new rule requiring companies to pay quarterly advance tax of 25% of the previous year's liability. Personal income tax rose 35.1% and domestic indirect taxes 20.8%. These are nominal changes; with inflation of around 10% to 15%, real growth was smaller. Federal figures exclude taxes collected by regional governments.

Official sources: Ministry of Finance: Mid-Year Budget Implementation Review 2025/26 (PDF)

What is Ethiopia's budget deficit?

Ethiopia's federal government ran a deficit of Birr 93.6 billion in the first half of fiscal year 2025/26 (July to December 2025), according to the Ministry of Finance mid-year budget review. It raised Birr 704.7 billion in revenue and grants and spent Birr 798.2 billion on recurrent and capital spending and transfers to regions.

The deficit was financed with a mix of domestic and external borrowing. For 2026/27, the budget proclamation tables plan Birr 1,816.6 billion of revenue and grants against Birr 2,339.3 billion of spending, with the gap covered by Birr 193.7 billion of external loans and Birr 329.0 billion of domestic borrowing. Deficits in the first half of the year tend to be smaller than for the full year.

Official sources: Ministry of Finance: Mid-Year Budget Implementation Review 2025/26 (PDF) · Ministry of Finance: 2019 EFY federal budget proclamation, part two (Excel)

What is Ethiopia's IMF programme?

The IMF approved a four-year Extended Credit Facility for Ethiopia in July 2024 worth SDR 2.556 billion, about US$3.4 billion, according to the Ministry of Finance Public Sector Debt Statistical Bulletin No. 56. A disbursement of SDR 191.70 million, about US$263.71 million, was made in the half year to December 2025.

The programme supports the government's Homegrown Economic Reform agenda, including the market-determined exchange rate. The ministry puts the financing gap for 2024/25 to 2027/28 at US$10.7 billion, to be covered by the IMF, about US$3.75 billion of World Bank budget support and about US$3.5 billion from debt treatment under the G20 Common Framework. Programme reviews are published on the IMF Ethiopia page.

Official sources: Ministry of Finance: Public Sector Debt Statistical Bulletin No. 56 (PDF) · IMF: Ethiopia

What is Ethiopia's debt to GDP ratio?

The latest figure from the IMF, for 2025, is 43.3% of GDP. Since 2005 it has ranged from 30.0% of GDP (2009) to 79.6% of GDP (2006). It is 33rd highest of 46 in Sub-Saharan Africa, where the median is 53.0% of GDP. Of 185 countries with 2025 data, 118th highest.

What is Ethiopia's budget deficit?

-1.2% of GDP: that is general government net lending or borrowing in Ethiopia for 2025, according to the IMF, which is a deficit. Since 2005 it has ranged from -4.2% of GDP (2022) to -0.9% of GDP (2009). Across Sub-Saharan Africa the middle value was -3.0% of GDP, and Ethiopia placed 11th highest of 47. World rank, highest first: 55th of 188.

How much revenue does Ethiopia's government raise?

The latest figure from the IMF, for 2025, is 10.9% of GDP. Since 2005 it has ranged from 7.5% of GDP (2024) to 18.8% of GDP (2005). Across Sub-Saharan Africa the middle value was 18.4% of GDP, and Ethiopia placed 43rd highest of 47. Worldwide: 180th of 187.

How much does Ethiopia's government spend?

12.0% of GDP: that is general government spending in Ethiopia for 2025, according to the IMF. The peak was 22.9% of GDP in 2005 and the low 9.5% of GDP in 2024. Sub-Saharan Africa median: 20.8% of GDP; Ethiopia is 44th highest of 46. Worldwide: 182nd of 186.

What is Ethiopia's tax to GDP ratio?

According to the IMF, central government tax revenue in Ethiopia was 3.4% of GDP in 2024. That is the lowest since at least 2005. Across Sub-Saharan Africa the middle value was 14.1% of GDP, and Ethiopia placed 15th highest of 16. World rank, highest first: 90th of 92.

What is Ethiopia's military budget as a share of GDP?

According to SIPRI, military spending in Ethiopia was 0.5% of GDP in 2025. The peak was 2.8% of GDP in 2005 and the low 0.4% of GDP in 2021. Across Sub-Saharan Africa the middle value was 1.3% of GDP, and Ethiopia placed 41st highest of 44. World rank, highest first: 138th of 149.