Proposed 2021 Budget of the Federal Government of Somalia

Somalia’s cabinet has approved the proposed FGS annual budget for the year 2021 in their meeting today. The proposed budget is 41.% higher than last year and, for the first time in decades, has crossed the half a billion dollars mark to $671.8m.

Of the proposed $671.8m budget, domestic revenue is expected to generate $260.1m (39% of the proposed budget; +11% from 2020), while donors will contribute $411.7m (61%; 77.6% increase from 2020).

• Domestic revenue: $260.1m (+$25.7m from 2020)
• Donor grants: $170.9m (+$61.4m from 2020)
• Development projects: $240.8m (+$118.5m from 2020)

Wages and salaries take the most significant portion of Somalia’s expenditure budget and this newly proposed budget allocates $38m for social services (health, education, justice and judiciary, constitutional review, and infrastructure development). The increased spending also allocates funding for the 2021 election administration.