The Somali Cabinet of Ministers has approved a $1.3 billion budget for the 2025 fiscal year after an emergency meeting led by Prime Minister Hamza Abdi Barre on Tuesday.
This marks a 24.4% increase from the 2024 budget, driven by a significant rise in internal revenue collection.
A statement from the Ministry of Finance highlights that the 2025 budget is $263 million higher than the $1.08 billion allocated in 2024.
“The increase in internal revenue aligns with the government’s plan to improve security, expand social services, and advance infrastructure development,†the ministry explained.
The proposed budget will now be submitted to the bicameral parliament for final approval.
To support future budgets, the Somali government introduced a 5% sales tax in 2024, which is automatically applied to business transactions.
This tax is expected to further enhance government revenue for the 2026 fiscal year.
