Ethiopia Allocates Third-Largest Regional Budget to Somali Region in Record $14.5 Billion Spending Plan
@SomaliReport_ โ Ethiopiaโs Somali Regional State has been allocated 51.9 billion birr (approximately $322 million), making it the third-largest recipient of regional funding under Ethiopiaโs record 2.34 trillion birr ($14.5 billion) federal budget for the 2026/27 fiscal year.
The budget, recently approved by Ethiopiaโs Council of Ministers and submitted to parliament, represents the largest spending plan in the countryโs history and is aimed at supporting economic reforms, investment priorities, and long-term development goals.
Of the 520.5 billion birr (about $3.2 billion) earmarked for Ethiopiaโs regional states and city administrations, Oromia received the largest allocation at 179.3 billion birr (approximately $1.11 billion), followed by Amhara with 112.4 billion birr (about $698 million). The Somali Region ranked third with 51.9 billion birr.
The allocation places the Somali Region ahead of several other major regional states, including South Ethiopia, which received 36.5 billion birr, Tigray with 31.3 billion birr, and Central Ethiopia with 30.9 billion birr.
The Somali Region is one of Ethiopiaโs largest regional states and plays a significant role in the countryโs livestock sector and cross-border trade with neighboring countries, including Somalia, Djibouti, and Kenya.
The federal government said the budget was designed to support development priorities, infrastructure projects, public services, and economic growth as Ethiopia continues implementing major reforms backed by international financial institutions, including the International Monetary Fund and the World Bank.
Authorities project economic growth above 9 percent in the coming fiscal year despite continued challenges related to inflation, debt pressures, and foreign currency shortages.
The new budget is expected to provide regional administrations with increased resources while supporting Ethiopiaโs broader economic transformation agenda through 2031.
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