Federal Parliament Endorses $1.3 Billion Budget for FY 2025

GOOBJOOG NEWS|MOGADISHU: A joint session of the Federal Parliament has approved the 2025 Appropriations Act which contains the government’s annual expenditure and revenues.

MPs voted unanimously to pass the budget which stands at $1.3 billion up from this year’s $1.1 billion.

Recurrent expenditure, most of which goes to paying government employees stands at $731.6 million government spending on projects and service delivery is billed at $610 million.

Like previous financial years, donor funding remains the bulk of revenue for the government. In the just passed budget, the government expects to raise $889 million from donors against $429 million from the domestic market.

According to the Act, reliance on donors shot up by 30% ($208.4 million) against last year’s $694.6 million. Grants stand at $889 million with a bulk of these- $847 million coming from international organisations such as the World Bank, EU, African Disaster Financing Programme (ADRIFI) and OPEC. On bilateral support, Treasury has factored in $30 million from Turkey and $12 million form the UAE.

On domestic revenues, the government expects to mobilise $295.3 million through taxes and $135.1 from ‘other revenues’. Notably, the government implemented 5% Value Added Tax in August in a bid to bolster revenues from the domestic market.

The Appropriations Act now heads to the President’s office for assent.