Regulatory Alerts2025-08-04
Somalia’s Government Fiscal Operations
The Central Bank of Somalia analyzes the Federal Government’s critically constrained fiscal space, where domestic revenues cover less than 3 percent of GDP and over 90 percent of expenditures are recurrent costs, forcing reliance on volatile external grants. The brief requires immediate policy interventions to broaden the national tax base, finalize federal revenue-sharing agreements, and redirect budget allocations toward productive capital investments to close persistent fiscal gaps. It further mandates strengthened public financial management, transparent debt oversight, and enhanced public sector integrity to ensure long-term fiscal sustainability and economic recovery.
Share