This note reviews the recently passed Government Budget for the 2020-21 fiscal year. Notable aspects of the budget include: (1) the Government’s expectations of still-strong growth this year (8.5% for GDP, 4.5% for imports); (2) the planned 20% increase in tax revenue, supported in part by higher indirect taxes (e.g. excises); and (3) the substantial spending increases/allocations dedicated for roads, health, education, debt service, irrigation, and security. With regards to the budget deficit, though a record Birr 126bn ($3.6bn) of government borrowing is planned,…