Ethiopia's Council of Ministers passed a record 2.34 trillion birr federal budget for the upcoming fiscal year, representing a 21% increase in government spending. The budget has been forwarded to parliament for approval, alongside approvals for fuel imports by foreign investors and international organizations.
Ethiopia is Africa's second-most populous country and a major power in the Horn of Africa, where it anchors regional diplomacy and hosts the African Union headquarters in Addis Ababa. Structured as a federal republic organized along ethnic lines, it is led by Prime Minister Abiy Ahmed of the Prosperity Party, with Taye Atske Selassie as ceremonial head of state. Key fault lines include internal ethnic and regional tensions (notably the aftermath of the Tigray conflict and unrest in Amhara and Oromia), strained relations with Eritrea, and Ethiopia's push for sea access that has unsettled ties with neighbors. As a landlocked state, it depends heavily on Djibouti for port access and maritime trade.