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Three top government offices bear the brunt of national budget deficit

The Somali parliament yesterday passed the amended 2015 budget which saw huge deficit after donor’s withdrawal of funds to the government. The budget was affected by cost cuts that have significantly hit top three offices in the land.

The parliament has gone against Finance Ministry recommendation of cutting down the salaries of security forces and civil servants to make up the shortfall; instead they targeted the three top offices with 30% cut of costs and others expenses. These are The Presidency, The Prime Minister’s Office and The Speaker’s Office.

In total, these offices would have to let go some USD 2,048,400 in travel allowances and other expenses for the remaining six months of the financial year.

According to budget report, some major reasons for the deficit include a failed USD 60 million donor pledge  from Turkey and the Arab League coupled up with ineffective tax collection regime.

The salaries of armed security forces would be covered from the recently approved New Deal packageg amounting to USD 32,371,248.

Parliament has however recommended that the Finance Ministry should keep up with new budget and to avoid any further deficit at all costs.

The 2015 budget was estimated to be USD 239.942,191, and the deficit only affected the second half of the year from July to December accruing to some USD 41 million which is 17.1% of the total budget.

Goobjoog News