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Somali Gov’t Ramps Up Spending on Economic and Social Sectors in 2025 Budget

Storyline:Business

GOOBJOOG NEWS|MOGADISHU: Government spending on social and economic sectors is set to significantly increase next year following the endorsement of the 2025 National Budget by the Federal Parliament.

According to the 2025 Appropriations Act which sets out revenues and expenditures, spending on social services rose from $208 million in 2024 to $329 for the 2025 Financial Year.

The Ministry of Health was allocated $91.8 million up from $52 million in the current financial year. A notable increase was also recorded in the Ministry of Education which bagged $110 million up from $75 million. The government also allocated $123.9 million to the Ministry of Labour which is an addition of $45 million.

This increased allocations especially in the health sectors is expected to boost access to public health services and disease prevention in line with plans for universal health. According to the UN, Somalia has the maternal mortality ratio of 621 deaths per 100,000 live births, which is among the highest in the world.

Economic sectors which include energy, mineral resources, agriculture, fishing, livestock, environment among others saw a budget increase of over $100 million rising from $232 million to $332 million.

In other budget areas, spending on defence reduced from $178 million to $171 million while internal security recorded an increase from $77 in the current financial year to $86 million.