MOGADISHU, Somalia – Reflecting the growth of the economy, the cabinet of the Federal Republic of Somalia has given the green light to allocate $1 billion for the financial year of 2024. However, before it can be put into effect early next year, it still requires approval from both the Lower House and the Upper House.
The country relies heavily on external aid and has minimal revenue generated domestically, which is hindered by infrastructural challenges. Nevertheless, there have been recent indications of progress in local revenue generation.
To cover the budget of $1,025,687,991, funds will come from both domestic revenue and international aid, particularly from institutions like the World Bank and the International Monetary Fund [IMF]. Somalia has successfully managed its debt in accordance with international standards.
The Council has reported a growth of over 20% in domestic revenue, with a particular focus on strengthening national security and social services. The government has devoted significant resources to combatting the presence of Al-Shabaab militants, who have been a major impediment to local revenue collection.
This budget represents a slight increase from the 2023 budget ceilings of $973,985,805, with emphasis placed on healthcare, education, and security based on comprehensive assessments. With the aim of stabilizing the country after years of civil war and setbacks caused by Al-Shabaab, more investment has been made in security measures.
Prime Minister Hamza Abdi Barre expressed his satisfaction with the approval, emphasizing the importance of prioritizing development efforts for the well-being of the Somali people. He acknowledged that various sectors still require significant reforms in order to achieve the goals of development.
Minister for Information, Tourism, and Culture, Daudi Aweis, highlighted that the approval of the budget by the cabinet presents an opportunity for the country to focus on productive investments rather than excessive consumption. The budget allocation will primarily benefit national security, according to the minister.
