Civic group condemns Addis Ababa’s exclusion from 2025/26 Federal Budget subsidies

Ethiopian civic organisation Arada Hibret has strongly condemned the government's recent decision to exclude Addis Ababa from the federal subsidy allocations in the 2025/26 national budget, which was approved last week with a total allocation of nearly 2 trillion birr (Sh1.9 trillion).

Draft budget estimates allocated substantial federal subsidies to regional states such as Oromia, 108.46 billion birr ( Sh104.1 billion), Amhara, 67.98 billion birr (Sh65.2 billion), Somali, South Ethiopia, and Tigray, 18.96 billion birr (Sh18.2 billion).

Addis Ababa was conspicuously left out, a departure from the 5.4 billion birr (Sh5.2 billion) grant the city received last year.

To cover the deficit, the Addis Ababa City Administration last week proposed a record 350 billion birr (Sh335.9 billion)budget for the 2025/26 fiscal year, representing a 52% increase from last year's 230.4 billion birr (Sh221.1 billion).

In a statement, Arada Hibret, which represents residents of Addis Ababa, described the exclusion as "a violation of the legal framework that guarantees fiscal support and self-governance to Addis Ababa".

"This unilateral action is not only a violation of the legal framework that guarantees fiscal support and self-governance to Addis Ababa, but it also constitutes a grievous assault on the basic human rights and sovereignty of its residents," the statement reads.

"The exclusion from the federal budget is an outright breach of this arrangement and a clear indication of the regime's contempt for the city's autonomy and its people's aspirations. Such actions undermine the city's economic independence and threaten to unravel the social fabric that holds Addis Ababa together."

Arada Hibret also criticised recent amendments to the Addis Ababa Charter, describing the federal government's actions as blatant violations of both Ethiopia's constitution and international human rights conventions.

The group further accused the regime of seeking "to annexe Addis Ababa into Oromia, against the expressed will of its residents," calling it a breach of fundamental rights to self-government.

"The apparent intention to annexe Addis Ababa into Oromia, against the expressed will of its residents, is a disservice to democracy and a breach of the residents' fundamental rights to self-governance," said Arada.

Further, the civic group expressed disappointment at the silence of opposition parties and mainstream media regarding the development.

"Their silence only emboldens the regime's unlawful actions and prolongs the pain inflicted on Addis Ababa's residents," the group said.

"We urge international organisations, governments, and human rights advocates to exert pressure on the Ethiopian regime to cease these illegal actions, respect Addis Ababa's sovereignty, and uphold the fundamental rights of its residents."

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