Investigative Reports

Major Corruption Allegations Rock Somaliland Finance Ministry’s Recruitment for World Bank’s Public Resource Management Project

According to documents examined by Somaliland Chronicle, serious allegations...

Financial Turmoil and a New Questionable Venture Cast Shadows over Boodhari Mills’ Future

In our previous coverage, we explored Boodheri Mills, a...

Somaliland Office in Taiwan Rejects Sexual Misconduct Allegations

The Republic of Somaliland Representative Office in Taiwan has...

Somaliland 2021 Budget – Brief Analysis

On December 8th, The Ministry of Finance Development has submitted the 2021 Budget to the parliament for approval, and officials including the Minister Dr. Sa’ad Ali Shire have appeared before the parliament to discuss the budget and its components and the various sources that generate taxes. The 2021 Budget was approved by President Bih’s cabinet on December 5th.

According to the budget, the Somaliland government expects to take in more than 171 billion Somaliland Shillings, a 9% increase from 2020 by fully implementing GST, income and payroll taxes, rolling back tax breaks on basic food and medical necessities import, one of the steps implemented as a response to the COVID-19 pandemic. In addition, the Ministries of Employment and Technology are expected to contribute significantly through employment licenses for foreigners and telecommunication fees.

Another tax the Ministry of Finance Development proposed in the budget a 200 SLSH or 0.023 US Dollars levy per kilo on Khat imports intended to develop programs for mental health issues. Although a National Mental Health is included in the priority areas for 2021, the budget does not state the rate of the proposed levy and exactly how it will be used to curb the rampant mental health issues in Somaliland. Its widely believed that khat consumption contributes significantly to health issues.

Somaliland has imported a whopping 30,594,705 kilograms of khat from Ethiopia from January to September 2020 and has assessed nearly 35 million US dollars in import taxes. Although there was a month-long moratorium on khat import during the month of Ramadan as part of COVID-19 pandemic response, it remains one of Somaliland’s top imports.

Despite a positive outlet for 2021, 96% of the 2021 budget is expected to come from traditional sources of customs and the Inland Revenue Service.

Although the 2021 budget is only 2.6% higher than the previous year, there are major differences where resources have been heavily deallocated from certain ministries such as the Ministry of Commerce and Tourism which seems to have lost 52% of its nearly 6 million dollar budget in 2020.

Latest

U.S. Ambassador to Somalia and CJTF-HOA Commander to Visit Somaliland Ahead of Presidential Inauguration

HARGEISA, Republic of Somaliland — U.S. Ambassador to Somalia...

The Politics of No Return: Why President Cirro Cannot Appease His Way to Reform

Somaliland's Democratic Triumph Faces Its Greatest Test President-Elect Dr. Abdirahman...

Innovative Partnership: The Contribution of Taiwan and Somaliland in Formulating a New Development Discourse in the Horn of Africa

Introduction The formal establishment of Somaliland-Taiwan relationship in 2020 is...

Taiwan’s Landmark $22 Million Investment Promises to Transform Hargeisa Group Hospital

In a landmark development that marks the most significant...

Stay Connected

Don't miss

U.S. Ambassador to Somalia and CJTF-HOA Commander to Visit Somaliland Ahead of Presidential Inauguration

HARGEISA, Republic of Somaliland — U.S. Ambassador to Somalia...

The Politics of No Return: Why President Cirro Cannot Appease His Way to Reform

Somaliland's Democratic Triumph Faces Its Greatest Test President-Elect Dr. Abdirahman...

Innovative Partnership: The Contribution of Taiwan and Somaliland in Formulating a New Development Discourse in the Horn of Africa

Introduction The formal establishment of Somaliland-Taiwan relationship in 2020 is...

Taiwan’s Landmark $22 Million Investment Promises to Transform Hargeisa Group Hospital

In a landmark development that marks the most significant...

The Last Will and Testament of a Dictator: Djibouti’s Precarious Transition from Guelleh and Its Global Reverberations

As Ismaïl Omar Guelleh’s once-iron grip on Djibouti loosens,...

U.S. Ambassador to Somalia and CJTF-HOA Commander to Visit Somaliland Ahead of Presidential Inauguration

HARGEISA, Republic of Somaliland — U.S. Ambassador to Somalia Richard H. Riley and Major General Brian Cashman, Commander of the Combined Joint Task Force...

The Politics of No Return: Why President Cirro Cannot Appease His Way to Reform

Somaliland's Democratic Triumph Faces Its Greatest Test President-Elect Dr. Abdirahman Mohamed Abdillahi "Cirro"’s sweeping electoral victory, securing over 60% of Somaliland's presidential vote, represents more...

Innovative Partnership: The Contribution of Taiwan and Somaliland in Formulating a New Development Discourse in the Horn of Africa

Introduction The formal establishment of Somaliland-Taiwan relationship in 2020 is a watershed moment that demonstrates the countries' innovative and pragmatic approaches to international cooperation. Both...