Fiscal

Understanding Fiscal Balance: A Beacon of Hope for Africa Fiscal balance is more than just a technical term. It represents the delicate dance between a government’s earnings and its expenditures. When this balance tips into negative territory, we’re looking at a budget deficit. Conversely, some countries are successfully narrowing this gap, generating an environment conducive to economic growth and investor confidence. Doesn’t it make you wonder how financial adjustments can resonate on ground level? Over the past few…

Ugandan Deputy Defence Chief in Mogadishu: Navigating AUSSOM's Financial Hurdles MOGADISHU, May 17 – In a marked display of camaraderie and duty, Sam Okiding, the Ugandan Deputy Chief of Defence Forces, touched down in Mogadishu last Saturday. His arrival, marked by an earnest reception by senior officials from both the Somali Army and the African Union Transition Mission in Somalia (AUSSOM), holds significance that goes beyond mere diplomatic courtesies. But why now? The timing of Okiding's visit is…

In a move that surprised many, Finance Minister Enoch Godongwana has officially abandoned plans for a 0.5% increase in Value Added Tax (VAT), a change that would have taken effect on May 1. The VAT rate will remain at 15%, offering a momentary sigh of relief for consumers and businesses alike. This decision did not occur in isolation; it stemmed from thorough discussions with various political factions and a meticulous evaluation of recommendations put forth by parliamentary committees. It appears the government is keenly…

In an unexpected twist of economic decisions, Libya's central bank announced a significant devaluation of their currency on a quiet Sunday. The dinar's value has been adjusted down by 13.3% against the U.S. dollar, pegging the official exchange rate at 5.5677 dinars per dollar. This change, undeniably, is laden with historical echoes and contemporary realities. It’s not just numbers; it’s a story unfolding. It's fascinating when you think about it, this is the first recalibration since 2020,…

Mogadishu (AX) — The bicameral legislature of Somalia has greenlit a substantial budget of $1.36 billion for the fiscal year 2025, reflecting a robust increase of 24.4% over the previous year. This decision came during a parliamentary session held on Monday in the capital, Mogadishu. In attendance were 143 Members of Parliament and 32 senators. The First Deputy Speaker of the People's Assembly, Saadiya Yasin Haji Samatar, confirmed that an overwhelming majority of 172 lawmakers backed the budget, with only two MPs voting…

Bal'ad (AX) — In a decisive gathering led by President Abdullahi Hussein Guudlawe in Bal'ad, Hirshabelle State's Council of Ministers gave the green light to a budget of $33,558,000 for the fiscal year 2025 on Thursday.During this pivotal session, the Minister of Finance and Economic Development unveiled the 2025 Budget Allocation Act. This plan ventures to bolster the number of civil servants in Hirshabelle's administration."We've secured $33,557,830 for the upcoming year's financial blueprint," proclaimed the Council in…

Mogadishu (AX) – At a special gathering led by Prime Minister Hamza Abdi Barre, Somalia's Cabinet of Ministers gave the green light to a whopping $1.3 billion budget for 2025. This decision was made during an urgent session held on Tuesday. This budget showcases a 24.4% jump from the previous year's allocation, all thanks to a surge in home-grown revenue. The Ministry of Finance spilled the beans, revealing that the budget for 2025 had ballooned by $263 million compared to the $1.08 billion earmarked for 2024. “Ramping up…