The Evolution of Ethiopia’s Budget Process

According to a 1967 account by Bulcha Demeksa (Journal of Ethiopian Law, Vol. IV, No. 2), Ethiopia’s experience with formal budgeting is a relatively recent development in the country’s financial governance.

Key Milestones

Pre-1958: Government spending was managed through ማዘዣ—authorization orders—without a comprehensive estimate of revenues or expenditures.

1945: Ethiopia published its first official budget, but it was limited in scope and timing.

1953: A post-year summary of revenues and expenditures was issued, offering some transparency, but not fiscal control.

1958: Marked the turning point—the first budget enacted by Parliament under the 1955 Revised Constitution, setting the stage for annual budgeting as a legal and fiscal tool.

Why This Matters Today?

The Ethiopian budget has evolved from fragmented authorizations to an institutionalized annual process. But this journey also highlights:

🔹 The importance of timely and transparent publication of budgets
🔹 The role of legal frameworks and parliamentary approval in fiscal governance
🔹 The continued need to strengthen citizen access, participation, and oversight in the budget process

Budgeting is not just a financial exercise—it is a reflection of governance, accountability, and public priorities.

As we continue to advocate for inclusive, transparent, and well-governed public budgeting, we reflect on how far Ethiopia has come—and how much further we can go.

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