Summary

The federal parliament of Somalia approved the 2022 fiscal budget in a joint session on June 30, 2022. As regulated by the public financial management act (2019), this budget approval would have occurred in December 2021; but the process was marred by the delayed elections. The Federal Government of Somalia’s (FGS) fiscal budget for 2022 has increased from last year’s actual spending of $376.5 million to $929.9 million in 2022. Furthermore, $250 million (26%) of the total revenue is estimated as domestic revenue collection in 2022 while $694.7 million (74%) will be an external support.

In addition, this donor dependent budget shows domestic revenue collection is not enough for the government to fund its huge expenditure in 2022. In the 2022 budget, the expenditures were divided into administration (37.9%), social service (35%), defense and security (18.3%) and economic sector (9%). Nevertheless, the FGS annual budget has increased with time in the last decade from $20 million in 2012 to $929.9 million in 2022.

However, this brief studies the discrepancies in the 2022 fiscal budget, in terms of expenditure and revenues with recommendations to address the gaps identified during the analysis.