The Federal Parliament of Somalia approved a revised 2023 supplemental budget in a
joint session in July 2023. The Federal Government of Somalia’s (FGS) revised budget for
2023 saw slight decline in foreign grants, creating new supplementary budget totaling $917
million, of which $456.88 million is recurrent expenditure (against original estimation of
$480.4 million) and $460.37 million representing capital projects (against original
estimation of $496.8 million).

However, the decline did not affect the domestic revenue estimation of $ 283.3m which
is expected to be collected as budgeted. It is worth noting that domestic revenue
collection in 2022 experienced slight growth of $12.57m ($262.67m against target of
$250.1).

Despite making up more than 50% of the annual budget, revenue from foreign grants
has most often been lower than budget target.
In addition, this analysis examines sections affected by the revised allocations in the
2023 supplemental budget, in terms of expenditure and revenues with limitation in
public budgeting and recommendations for way forward.

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