Addis Ababa Cabinet Approves Record 350B Birr Budget, Ups the Stakes by 52%
BaseLine Team
17 Jun, 2025
The Addis Ababa City Administration Cabinet has approved a record-breaking 350 billion Birr draft budget for the next fiscal year. It is a sharp 52% increase from last yearโs 230.4 billion Birr.
This is the largest single-year increase in Addis Ababaโs recent budget history.
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- 249.9 billion Birr (nearly 72%) is set aside for capital projects: large-scale infrastructure, employment schemes, and subsidies aimed at easing pressure on public services.
- The remaining 100.1 billion Birr is designated for recurrent spending, with the Cabinet emphasizing a lean, cost-conscious approach.
The draft now heads to the City Council for final sign-off. Addis Ababa has seen big numbers before. What is rare is efficient delivery. The execution gap is the cityโs Achillesโ heel, and unless project management improves, officials warn that this huge capital allocation could become another missed opportunity.
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In the same session, the Cabinet approved a revision to land lease auction prices, based on a proposal from the Land Development and Management Office.
The revision reflects:
- Infrastructure improvements in areas developed through corridor expansion
- Stabilization of speculative land prices
- The cityโs need to align pricing with upcoming development priorities
