Addis Ababa Expensive Corridor Projects must be slowed down
Posted: 19 Apr 2026, 21:24
Historic Wage Increases: In the 2025/26 fiscal year, the federal government announced a significant salary increase for public sector workers, raising the total annual wage bill to 560 billion Birr. This represents nearly 29% of the total budget.
Infrastructure Spending: Despite these wage hikes, capital investment—which includes corridor development projects—has been reduced to roughly 22% of the budget. This is the lowest ratio allocated to capital outlays in over a decade.
Debt Servicing: Debt repayment currently accounts for about 25% of the total budget (approximately 463 billion Birr)
Total Expenditure $12.3 Billion USD
Projected Revenue $$7.6 Billion USD
Financing Gap (Deficit) $4.7 Billion USD
Infrastructure Spending: Despite these wage hikes, capital investment—which includes corridor development projects—has been reduced to roughly 22% of the budget. This is the lowest ratio allocated to capital outlays in over a decade.
Debt Servicing: Debt repayment currently accounts for about 25% of the total budget (approximately 463 billion Birr)
Total Expenditure $12.3 Billion USD
Projected Revenue $$7.6 Billion USD
Financing Gap (Deficit) $4.7 Billion USD

