Issue No 627

Published 13 Dec 2023

The billion dollar budget

Published on 13 Dec 2023 13:23 min
The billion dollar budget
 
For the first time, Somalia's federal budget has surpassed USD 1 billion. On Saturday, 9 December, the Federal Parliament passed the 2024 Budget Appropriation Act in a sitting chaired by the Upper House Speaker Abdi Hashi Abdullahi. The bill's eventual passage was straightforward, with near-unanimous approval from MPs, barring three abstentions. An increase of USD 62 million from 2023, the budget dwarfs the country's federal budget of USD 114.3 million of a decade ago. Substantial increases in donor funding and gradual internal revenue development have seen Somalia's budget soar in recent years.  
 
The budget is comprised of two main parts; the first is a fixed budget of USD 569,666,048, and the second is a capital budget of USD 509,655,736 for a total budget of USD 1,079,315,784. Most of this will come from external donors, perhaps as much as 70% from grants and loans, despite the progress Somalia has made in collecting internal taxes.
 
The bill's passage coincides with the expected approval of near-total debt relief for Somalia today, 13 December, following a high-level meeting in Washington DC at the International Monetary Fund (IMF) and World Bank. The write-off slashes Somalia's debt from USD 5.2 billion to around USD 600 million, the result of a decade of reforms and negotiations between Somalia and the Bretton Woods institutions that began during President Hassan Sheikh Mohamud's first term as president. The completion of the Heavily Indebted Poor Countries (HIPC) Initiative is the latest in a string of high-profile foreign policy successes for Villa Somalia. Finance Minister Bihi Iman Egeh further signalled in parliament last week that Somalia will be the "first country granted permission to continue receiving… aid" from these bodies once debt relief is complete.
 
Unsurprisingly, security sector funding accounts for the largest chunk of the national budget. A total of USD 224,279,259 has been allocated for Somalia's entire defence and security services, over 20% of the country's total budget. The Somali National Army has been budgeted over 132 million, the Ministry of National Security 83 million, the Police Command nearly 50 million, and the National Intelligence and Security Agency (NISA) 26 million. Next year is supposed to be crunch time for the Somali National Army (SNA) to eradicate Al-Shabaab from central and southern Somalia. The perennial issues of corruption, and the allocation of funds into vanity projects rather than effective counter-insurgency are likely to continue undermining the SNA budget, however.
 
The content of the federal budget also signals education as another priority of the current government, allocating over USD 60 million for the Ministry of Education. Considering the scale of illiteracy and the patchwork education system currently in Somalia, the budgetary increase, along with the recent announcement that another 3,000 teachers will be hired, are welcome. But not all social investment has been ring-fenced; healthcare in Somalia has taken a major cut from USD 67 million in 2023 to USD 52 million next year.
 
The budget has not come without controversy. As part of the budgetary increase, Somali MPs also voted to hike their own monthly salaries from USD 3,500 to 5,000. Leaving aside whether the increase is justified, two issues have been subsequently raised. First, earlier the same day, the Somali Disaster Commissioner Mohamud Moalim had said there are insufficient funds to fully support those affected by recent and ongoing flooding. While the two cannot be directly equated-- if funding were not allocated for MP salaries does not mean it would be allocated for humanitarian support-- this is certainly a bad look, one which has been seized on by critics of Somalia's parliament. Somali MPs are now paid more than lawmakers in Poland, the Czech Republic, and India, among others, and far higher than the average Somali soldier whose monthly salary is USD 250.
 
Second is the prospect of the National Consultative Council (NCC) proposals’ consideration in parliament. The sweeping electoral changes are yet to be tabled, and are unlikely to be, at least until President Hassan Sheikh Mohamud is back in Mogadishu and able to garner more political support. One perception is that the MP salary increase could help shore up the government's unstable position in pushing the proposals. The increase suggests a wider malaise that has crept into the federal administration in recent months. Promises of constitutionalism and straightforward politics are being replaced by arm-twisting and transactional back room deals.
 
Like with many countries, the passage of Somalia's federal budget has traditionally been a combative affair as lawmakers jostle for funding and influence. The relatively smooth passage of the bill then has come as a bit of a surprise, despite the two controversies mentioned above.
 
There are in fact further concerns about insufficient scrutiny over the passed budget, with the second and third readings of the bill raced through in a single day last week. But the real parliamentary debates may be still to come over the constitutionalism of the NCC proposals. Discussion about Somalia's future electoral configuration should be out in the open, not decided by pay increases and proffered positions. Both houses of Somalia’s parliament must have a genuine say on the future direction of their country, without fear or favour.
 
By the Somali Wire team

To continue reading, create a free account or log in.

Gain unlimited access to all our Editorials. Unlock Full Access to Our Expert Editorials — Trusted Insights, Unlimited Reading.

Create your Sahan account Login

Unlock lifetime access to all our Premium editorial content

You may also be interested in

Issue No. 123
Another Election and Djibouti's Succession Problem
The Horn Edition

Apathy pervades the Djiboutian population. A week tomorrow, on April 10, the country will head to the polls, with President Ismaïl Omar Guelleh seeking a 6th— essentially uncontested — term in office. With his coronation inevitable, his family's dynastic rule over this rentier city-state will be extended once more. But in a region wracked by armed conflict and geopolitical contestation, the ageing Guelleh's capacity to manage the familial, ethnic, and regional fractures within and without grows ever more complicated. And Djibouti's apparent stability is no product of institutional strength, but rather an increasingly fractious balance of external rents and coercive control-- underpinned by geopolitical relevance.


23:43 min read 02 Apr
Issue No.944
Türkiye's Deepwater Reach in Somalia
The Somali Wire

In the 17th century, the Ottoman polymath Kâtip Çelebi penned 'The Gift to the Great on Naval Campaigns', a great tome that analysed the history of Ottoman naval warfare at a moment when Constantinople sought to reclaim maritime supremacy over European powers.


21:14 min read 01 Apr
Issue No. 325
Dammed If They Do
The Ethiopian Cable

Why have one mega-dam when you can have three more? Details are scarce, but Ethiopia has unveiled plans to build three more dams on the Blue Nile, just a few months after the Grand Ethiopian Renaissance Dam (GERD) was completed.


14:12 min read 31 Mar
Issue No. 943
Baidoa Falls and Federal Power Prevails
The Somali Wire

Villa Somalia has prevailed in Baidoa. After weeks of ratcheting tensions, South West State President Abdiaziz Laftagareen proved a paper tiger this morning, unable to resist the massed forces backed by Mogadishu. After several hours of fighting, Somali National Army (SNA) forces and allied Rahanweyne militias now control most of Baidoa and, thus, the future of South West. In turn, Laftagareen is believed to have retreated to the protection of the Ethiopian military at Baidoa's airport, with the bilateral forces having avoided the conflict today.


18 min read 30 Mar
Issue No. 942
A Son Sent to Die in Jihad
The Somali Wire

Last October, Al-Shabaab Inqimasin (suicide assault infantry) overran a National Intelligence and Security Agency (NISA) base in Mogadishu, freeing several high-ranking jihadist detainees and destroying substantial quantities of intel. A highly choreographed attack, the Inqimasin had disguised their vehicle in official NISA daub, weaving easily through the heavily guarded checkpoints dotting the capital to reach the Godka Jilicow compound before blowing open the gates with a suicide car bomb. In the months since, Al-Shabaab's prodigious media arm-- Al-Kataib Media Foundation-- has drip-fed images and videos drawn from the Godka Jilicow attack, revelling in their infiltration of Mogadishu as well as the dark history of the prison itself. And in a chilling propaganda video broadcast at Eid al-Fitr last week, it was revealed that among the Inqimasin's number was none other than the son of Al-Shabaab's spokesperson Ali Mohamed Rage, better known as Ali Dheere.


22:20 min read 27 Mar
Issue No. 122
A brief history of Sudan's child soldiers
The Horn Edition

In early 1987, the commander of the Sudanese People's Liberation Army/Movement (SPLA/M), John Garang, is reported to have issued a radio order, instructing his field officers to gather children to be dispatched to Ethiopia for military training. Garang's command conveyed the rebels' institutionalisation of a well-established practice of child soldiering; a dynamic that has been reproduced by virtually every major armed actor in Sudan-- and later South Sudan-- since independence. Today, as war has continued to ravage and metastasise across Sudan, few communities and children have been left untouched by the ruinous violence.


30:05 min read 26 Mar
Issue No. 941
Echoes of the RRA: Identity and Power in South West State
The Somali Wire

The Rahanweyne Resistance Army (RRA) did not emerge from a shir (conference) in October 1995 to defend a government, nor to overthrow it. Rather, the militia —whose name was even explicit in its defence of a unified Digil-Mirifle identity —arose from the ruin of Bay and Bakool in the years prior, and decades of structural inequalities.


21 min read 25 Mar
Issue No. 324
A War Deferred or Avoided?
The Ethiopian Cable

War has been averted in Tigray-- for now. In early February, tens of thousands of Ethiopian federal soldiers and heavy artillery streamed northwards, readying themselves on the edges of the northernmost region for seemingly imminent conflict.


23:53 min read 24 Mar
Issue No. 940
Baidoa or Bust for Hassan Sheikh
The Somali Wire

The battle for South West—and Somalia's political future—continues apace. With the brittle alliance between South West State President Abdiaziz Laftagareen and President Hassan Sheikh Mohamud having broken down spectacularly, the federal government is pouring in arms and forces to oust the Digil-Mirifle leader. Staring down the barrel of the formal opposition holding three Federal Member States and, with it, greater territory, population, and clan, Villa Somalia is looking to exploit intra-Digil-Mirifle grievances—and convince Addis—to keep its monopolistic electoral agenda alive. But this morning, Laftagareen announced a 9-member electoral committee to hastily steer his re-election, bringing the formal bifurcation of the Somali state ever closer.


20:23 min read 23 Mar
Scroll