The Federal Parliament of Somalia endorsed the 2023 annual budget in a joint session on December 28, 2022. The Federal Government of Somalia’s (FGS) annual budget for 2023 has made slight increase from 2022 spending plans of $929.9 million to $977.2 million in 2023. Hence, 283.3 million (30%) of the entire revenues will be mobilized through domestic revenue while $667.3 million (70%) will be received as bilateral and multilateral support from donors to supplement domestic revenue. This shows a decline of $27.4 million (-4%) from the 2022 pledged donor grants.

However, the donor dependent budget proposal shows domestic revenue collection weakness to fund the huge expenditure. In the 2023, the expenditures were divided into administration (35%), social service (27%), defense and security (20%) and economic sector (18%). Nevertheless, the FGS annual budget has increased with time since 2013.

In addition, this analysis examines the disparities in the 2023 annual budget, in terms of expenditure and revenues with recommendations to meet debt relief completion point triggers.