Somaliland Ministry of Finance & Economic Development – Budget 2026 (Key Facts)
Hargeisa (ANN)- Somaliland’s Ministry of Finance Prepares Record National Budget for 2026
Accodring to source report The Ministry of Finance and Economic Development of the Republic of Somaliland has prepared and presented a record-breaking national budget for the 2026 fiscal year, marking the largest financial plan in the country’s history.
According to official figures presented to the Council of Ministers, the total estimated national budget for 2026 stands at approximately SL Sh 4.58 trillion (about $424.5 million). The draft budget was prepared by the Ministry and approved by the Cabinet before submission to Parliament for final legislative approval.
The Ministry said the budget reflects Somaliland’s effort to strengthen fiscal stability, expand domestic revenue, and support national development priorities across key sectors.
Largest Budget in Somaliland’s History
Officials confirmed that the 2026 fiscal plan is the biggest ever proposed by Somaliland since the establishment of its national budgeting system.
The Ministry of Finance reported that revenue projections for 2026 show strong growth, with government revenue expected to increase by about 22% compared with the 2024 budget, helping to recover deficits recorded in earlier years.
Central Government Allocation
The Central Government budget alone is estimated at about SL Sh 2.86 trillion, representing around 63% of the total national budget, and showing an 11% increase compared with the 2025 central government budget.
Budget Structure
The Ministry outlined the national budget structure as follows:
Central Government — 63%
Local Governments — 12%
World Bank and African Development Bank funded projects — 17%
Public revenue-generating agencies and donor-related programs — about 8%
Key Spending Priorities
The 2026 budget focuses on major national priorities including:
Strengthening social services
Enhancing national defence and security
Expanding economic infrastructure Maintaining macro-economic and fiscal stability
Fiscal Outlook
The Ministry says the new budget signals a recovery in fiscal performance after several years of deficit pressure, supported by improved domestic revenue collection and broader economic activity.
Overall 2026 Budget (Prepared by the Somaliland Ministry
Total National Budget (2026): about SL Sh 4.58 trillion (≈ $424.5 million).
This is the largest budget in Somaliland’s history.
🏛 Central Government Budget (Managed mainly through the Ministry)
Central Government:
SL Sh 2.866 trillion (about 63% of total).
Increase vs 2025: about 11% higher. According to report
📊 Full Budget Structure (2026)
Central Government: 63%
Local Governments: 12%
World Bank & AfDB Projects: 17%
Revenue agencies / State entities: 8%
📈 Revenue & Fiscal Direction
Revenue projected to increase roughly 22% vs 2024 levels, helping offset earlier deficits (2022–2024 averaged ~11%).
Main Spending Priorities (Finance Ministry policy direction)
The 2026 budget focuses on:
Social services
Defence and national security
Economic infrastructure
Fiscal and macro-economic stability
🧾 Role of the Ministry of Finance & Economic Development
The Ministry is responsible for:
Preparing and presenting the national budget
Public financial management reforms
Revenue collection and tax administration
Financial transparency and automation programs.
fallow us the video highlights the ongoing efforts of the Ministry of Financial Development to strengthen economic systems, improve public financial management, and support national development priorities across Somaliland.
Officials emphasized transparency, revenue reform, and support for key sectors affected by climate challenges, including communities facing severe drought conditions. The ministry also reaffirmed its commitment to working with international partners to stabilize the economy and expand financial services to rural areas.
The report further shows how financial policy reforms are being positioned as part of wider humanitarian and development strategies, especially as drought continues to affect livelihoods, livestock, and local markets.
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By Arraale M Jama Freelance Journalist and Human Rights
activist.
Araweelo News Network (Associated Online Agencies).
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