Somalia Moves to Align Federal and Regional Budgeting In Push for Stronger Public Financial Management

GOOBJOOG NEWS | MOGADISHU: The Ministry of Finance has concluded a four-day meeting bringing together federal, regional and Banadir administration officials to coordinate budget planning and strengthen cooperation on public financial management, as Somalia continues reforms aimed at improving fiscal governance.

The quarterly conference, which ended on Wednesday in Mogadishu, focused on harmonising budget preparation procedures between the Federal Government, Somalia’s Federal Member States and the Banadir Regional Administration.

Officials discussed preparations for the 2027 national budget, including ways to improve coordination across different levels of government and increase public participation in the budgeting process before spending plans are submitted to the Council of Ministers and Parliament for approval.

The meeting also reviewed reports and work plans presented by the Budget Subcommittee and agreed on priorities for upcoming technical discussions aimed at further strengthening Somalia’s budget framework.

Speaking at the closing session, Finance Ministry Director General Dr. Saleebaan Sheikh Omar said closer cooperation between federal and regional institutions was essential to building a more transparent and efficient budgeting system, according to a ministry statement.

The discussions come as Somalia continues implementing wide-ranging public financial management reforms backed by international partners, following the country’s debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative in late 2023. Since then, authorities have sought to strengthen domestic revenue collection, improve fiscal transparency and modernise budget and treasury systems as part of broader economic reform efforts.

One of the recurring challenges facing Somalia’s fiscal system has been coordinating budget priorities and expenditure planning between the Federal Government and Federal Member States.

Economists say greater alignment of budget processes could help improve service delivery, increase accountability and strengthen confidence among development partners that continue to support Somalia’s reconstruction and state-building efforts.

The latest meeting reflects ongoing efforts to establish more consistent budget practices across government institutions as Somalia seeks to consolidate economic reforms while responding to growing development and humanitarian needs.