Hiiraan Xog, The cabinet of the federal government of Somalia approved Monday a $340 million budget for 2019.
Finance minister Abdirahman Duale Baileh told a Cabinet meeting that his ministry is expected to generate a huge amount of the budget from local revenues.
Mr. Beileh said the internal revenue increased by 30 million USD thanks to the government’s Domestic Revenue and Public Financial Management Capacity Strengthening Project.
Part of the budget will come from foreign donors.
“The ministry of finance has strived to make as much revenue as possible,” Mr. Beileh told fellow ministers at the meeting chaired by Prime Minister Hassan Ali Kheire.
“ The budget hits 340 million USD, the development came as a result of the financial reforms and economic growth, the ministry will review the budget and adjust accordingly to increase disbursements to the ministries.”
The minister pledged transparency in the process, saying: “The more transparent our budget is, the better Somalia’s chances of getting debt relief from the international donors (will be).”
The new budget is $65m more than the 2017/2018 budget which was 274 million USD.
Somalia’s economy was forecast to grow by an average of between 3.5 and 4.5 percent annually in 2019-2022, according to the World Bank.
I am pleased that the cabinet has approved the 2019 national budget today. Our budget has now risen to $340M. this progress is the result of our economic and fiscal reforms and focus on rising domestic revenue. our reform will be supported by our commitment to good governance. pic.twitter.com/fbhVtgSU7v
— SomaliPM (@SomaliPM) October 29, 2018