Somalia’s National Budget Sees Significant Increase for 2025

Somalia’s parliament has approved the country’s national budget for the year 2025, allocating a total of 1.339 billion Somali shillings (approximately $200 million). This figure represents a significant increase of around 20% compared to the previous year’s budget.
The approved budget reflects the government’s commitment to boosting economic growth and development through increased spending on various sectors and projects. According to the finance ministry, the revenue target for the fiscal year 2025 has been set at 470 million Somali shillings, a 25% increase from the previous year’s revenue collection.
The ministry has expressed confidence in achieving this target, citing the positive trend in tax revenue collection observed in the first two months of the current year. As of now, the ministry has already collected over 90 million Somali shillings, putting them on track to surpass the projected target of 377 million Somali shillings.
The government has acknowledged the hard work and dedication of the finance ministry officials and tax collectors in preparing the budget and ensuring efficient revenue collection. Additionally, the ministry has extended its gratitude to the Somali people and businesses for their cooperation and timely tax payments, which have contributed to the increased revenue.
The budget allocation will prioritize various sectors, including infrastructure development, education, healthcare, and security. The government aims to stimulate economic growth, create employment opportunities, and improve the overall living standards of the Somali people through these investments.
While the budget increase is a positive step, challenges remain in terms of efficient implementation and ensuring transparency in the allocation and utilization of funds. Continued efforts will be required to maintain fiscal discipline and accountability to ensure the desired outcomes are achieved.