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National Budget Regulations in Somalia

Objectives

The National Budget Regulations in Somalia are designed to ensure that the budgeting process is transparent, accountable, and adheres to established frameworks. The key objectives are:

  • Ensure that the National Budget is prepared and approved in accordance with the Fiscal Policy Framework Paper and the Budget Call Circular.
  • Provide transparency and accountability in the budgeting process.
  • Ensure that public bodies submit their budget proposals within the prescribed timelines.

Functions

The following functions are outlined in the regulations:

Minister’s Functions

  • The Minister shall issue guidelines for the implementation of the regulations.
  • The Minister shall review and approve budget submissions from public bodies.

Cabinet’s Functions

  • The Cabinet shall review and approve the National Budget, making decisions on new policies included in budget submissions.

Public Bodies’ Functions

  • Public bodies shall prepare their budget submissions in accordance with the instructions of the Minister.
  • Public bodies shall ensure that their program classification is reflected in the chart of accounts and the SFMIS.

Ministry’s Functions

  • The Ministry shall publish the proposed and approved National Budgets on its website.

Activities

The following activities are outlined in the regulations:

  • Preparing and submitting budget proposals by public bodies.
  • Reviewing and approving budget proposals by the Cabinet.
  • Publishing the proposed and approved National Budgets.

Performance Characteristics

The regulations specify the following performance characteristics:

Expenditure Limits

  • Expenditures for existing policies included in budget submissions shall not exceed the ceilings prescribed by the Fiscal Policy Framework Paper and the Budget Call Circular.

New Policy Proposals

  • Proposals for new policies included in budget submissions shall be prepared in a specified form and reviewed by the Cabinet.

Key Requirements

The regulations outline the following key requirements:

  • All revenues and expenditures of the Federal Government shall be included in the National Budget on a gross basis, with no deductions for cost of collection or retention.
  • Confidential expenditures shall be presented to the leadership of Parliament and agreed upon before being included in the National Budget or Supplementary Budget.
  • The proposed National Budget shall include explanatory notes from public bodies, information on externally-financed expenditure, fiscal operations and budgets of Federal Member States, and other contents deemed necessary by the Minister.