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Thursday, September 29, 2022

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    Federal and state finance ministries reach deal over resource sharing

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    Somali Magazine Following a meeting in Mogadishu on Tuesday, the Federal Ministry of Finance and Federal Member State Ministries of Finance decided to split financial aid to Somalia coming from overseas.

    The two sides reached an agreement on 11 principles, including the need to avoid politicizing Somalia’s financial problems and its debt relief law as well as the promotion of openness, responsible leadership, and the fight against corruption.

    The foreign donations intended to bolster Somalia’s budget, which was the root of the dispute between the two sides, will be distributed equally, the Ministers decided.

    They also decided to allocate 50% of the World Bank’s budget subsidies (DPO-2) to growing social issues and good governance, like health and education. Additionally, the regional states may use 50% of the DPO-2 budget subsidies at their discretion, but they are still responsible for handling the accounting and financial reporting.

    As a result of allegations that the federal government ministry of finance had broken prior agreements, the finance ministers of the federal member states of Somalia declared on August 31 that they were suspending their collaboration with the central government in Mogadishu.

     

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