Addis Ababa — A national dialogue focused on strengthening Ethiopia’s fiscal federalism and government service delivery system was recently held at the Hilton Hotel. The event was organized in collaboration with the Ministry of Finance, the House of Federation, and the World Bank.
At the opening of the dialogue, Minister of Finance, Hon. Ahmed Shide, emphasized that a strong fiscal federalism system forms the foundation for enhancing the budgeting capacity of regional states and districts across Ethiopia. He noted that the system has been particularly instrumental in achieving developmental results in sectors such as education, health, clean water provision, and rural road infrastructure.
The minister further highlighted that ongoing macroeconomic reforms are supported by the fiscal federalism framework, enabling regional states to increase internal revenue, prioritize projects, and improve government financial management. This, in turn, creates opportunities for enhanced development and growth at the regional level.
The two-day dialogue also showcased fiscal federalism experiences from countries including Nigeria, South Africa, India, and Germany. Officials and experts from federal and regional governments participated, providing insights on how Ethiopia’s untapped fiscal management system can be further strengthened in the coming years.