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Federal and state finance ministries reach deal over resource sharing

Wednesday September 14, 2022

Mogadishu (HOL) - The Federal Ministry of Finance and Federal Member State Ministries of Finance have agreed to share financial support to Somalia from abroad following a meeting in Mogadishu on Tuesday.

The two parties agreed on 11 points, including not politicizing Somalia's financial issues and debt relief law and encouraging transparency, good governance, and the fight against corruption.

The Ministers agreed to distribute equally the foreign donations intended to support Somalia's budget, which was the source of the conflict between the two sides.

During their meeting, they also agreed on allocating 50% of the World Bank's budget subsidy (DPO-2) to developing social issues and good governance, such as health and education. Also, the regional states have the discretion of using 50% of the DPO-2 budget subsidy, but they must perform the accounting and financial reporting.

On 31 August, Finance Ministers of Somalia's federal member states announced that they were suspending cooperation with the central government in Mogadishu after they accused the federal government ministry of finance of violating the previous agreements.


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