The Federal government and regional administrations have agreed to form a national commission to oversee the harmonisation of tariffs and taxes in the country.
The two levels of government have also agreed on implementation of a modernised financial management system to streamline public resource management and curb pilferage and mismanagement.
The agreements are contained in a communiqué following a conference in Mogadishu bringing together the Federal Minister and finance ministers from the regional administrations.
Speaking after the Inter-governmental Conference On Fiscal Federalism, Finance Minister Mohamed Adan Farkeeti said the meeting was a step forward in harmonising public finance management and ensuring transparency in both levels.
“It’s a pleasure for me today that after three days of meeting, we have agreed on very important points regarding public finance management in the country. These points are critical in working out a clear development policy for the country,” said Farkeeti.
The conference also agreed on equitable sharing of foreign aid, a thorny issue which has been coming up between the Federal Government and the Regional Administrations. However the conference did not put out a formula regarding the sharing and also what happens to foreign aid received by individual state administrations.
Other issues include sharing development ideas and that Federal Ministry will assist regional administrations on monetary issues.
The issue of currency printing did not however come in the communiqué’ despite the proliferation of new Somali currency which is now in circulation in Adaado, Galmudug state. The government of Puntland had sometime this year printed the notes to offset its expenses but the central bank governor warned of inflation and distabilisation of the economy.