Budget Policy 2019


Based on the national development plan and the commitment of the ruling party, the following budget policy document highlights the priorities of the 2019 budget:

  • The 2019 budget policy encourages investment in the country by using government funds to promote ease of doing business, to create a simplified tax system and support land-based investment.
  • This year’s 2019 government will strengthen the country’s economic growth, increase job creation, reduce poverty, raise public awareness, and reduce the trade deficit in the trade balance.
  • The 2019 Budget Policy aims to enhance the quality and utilization of the country’s currency by ensuring that the purchase of any state-owned land is made in Somaliland Shillings.
  • The 2019 Budget Policy also intends to facilitate job creation by enabling the government to work closely with businesses to create equal employment opportunities; thus, increasing employment and reducing poverty.
  • Furthermore, the 2019 Budget Policy aims to encourage entrepreneurship across the country by opening up opportunities for Public-Private dialogue between the government and business partners through a Public-Private Partnership—promoting economic growth in the process.
  • Moreover, the Budget Policy looks to build our capacity for data collection in order to achieve a sustainable statistical capacity.
  1. Security


  • Since our country is located in a volatile and insecure region, security is a top priority for the 2019 Budget.
  • In an effort to strengthen the armament and size of the various security forces of the Republic of Somaliland, the 2019 National Budget assigns special importance to the provision of equipment and supplies for the country’s various military forces.
  • The 2019 National Budget will focus on the construction and maintenance of regional and country councils.
  • The 2019 National Budget allocates more funds to Governors and their deputies in order to strengthen the central government’s antitrust authorities located in each region.
  1. Strengthening the Judiciary


  • Because justice is the bedrock of peace and is overseen by the judiciary, the 2019 National Budget will increase the wages of the judicial officers in order to promote and enhance adherence to justice and equality.
  • The 2019 National Budget also priorities the establishment of prisons in the country
  1. Foreign Affairs


  • Since 1991, Somaliland has put a lot of effort towards achieving international recognition. In order to sustain those efforts and achievements, the 2019 National Budget will allocate a special fund to help finance all recognition related activities
  1. Elections


  • Somaliland’s free and fair elections, which have been recognized by the international community, exemplify peace and democracy in the Horn of Africa. In order to sustain these standards and support the upcoming 2019 parliamentary and local government elections, the 2019 National Budget has allocated funds to cover the portion of the election fund the government is responsible for.
  • Moreover, in order to avoid depending on the international community for support in funding its elections, the Somaliland government intends to set-up a special election fund—to be credited every year.

Production & Economic Infrastructure


  1. Livestock & Fisheries


  • Owing to the fact that livestock production is the backbone of the economy, the 2019 National Budget will allocate funds to livestock treatment
  • The 2019 National Budget also accords a great deal of importance to advancing our livestock production by improving upon our traditional livestock practices
  • Similarly, the 2019 Budget allocates funds aimed to enhance fishing skills and to the procurement of fishing equipment
  1. Agriculture

  • The second national development plan stipulates that we increase the land used for agricultural production every year; as a result, the 2019 National Budget will fund agricultural projects in Wajale, Saaxil, Beer, Sool and Sanaag
  • Furthermore, the 2019 National Budget has made provisions for the procurement of modern agricultural equipment
  1. Energy & Minerals

  • Because energy is a resource that is indispensable to everyday activities, the 2019 National Budget will focus on energy efficiency
  • Our country is endowed with various types of energy reserves which need to be comprehensively studied. The 2019 National Budget therefore allocates funds to assess our energy resources while ensuring the continuation of ongoing exploration projects
  1. Economic Infrastructure

  • As Roads are a good indicator of economic growth, the 2019 National budget therefore priorities their construction and drainage along with the modernization of road construction tools
  • The 2019 Budget also gives great importance to technology infrastructure by allocating funds towards the purchase of any necessary equipment that will enable the government to collect telecommunications metadata (e.g. number of calls and texts being sent through phone companies) for tax purposes

Provision of Social Services

  1. Water

  • The 2019 National Budget gives special importance to the development of the country’s water resources by funding the construction of dams, the drilling and maintenance of new and old wells, and water collection hygiene
  • There is an existing water project in Hargeisa—funded by the World Bank—that aims to expand the water available in the capital. The 2019 National Budget will contribute to this project in order to further expand its output
  • The 2019 National Budget also encourages Public-Private partnerships geared towards harvesting rainwater
  1. Healthcare

  • The development of the public healthcare service is of paramount importance for the 2019 Budget, especially the construction and furnishing of new hospitals, Mother and Child care facilities (MCH)
  • Given that ambulances are the backbone of the healthcare system, the 2019 National Budget has made provisions to buy more ambulances and set up a national ambulance network
  • The 2019 National Budget has also made provisions for the purchase of dialysis machines for Burco in order to stop people from seeking healthcare services abroad/elsewhere
  1. Education

  • The 2019 budget will allocate funds to the construction of public schools in order to enhance the provision of education services in the country
  • The 2019 National Budget gives priority to the provision of technical training (TVET), which our people have a great need of as it will create job opportunities and reduce poverty. So, the budget will focus on the construction and maintenance of technical schools
  • Moreover, the 2019 Budget makes provisions to support the Teacher Training Institute in developing quality teachers and consequently quality students
  • The 2019 Budget also specifies the importance of developing the curriculum and learning materials
  1. Youth Development & Employment

  • Promoting diversity in sports is of paramount importance to the government; and so, provisions have been made in the 2019 National Budget to fund for the construction and maintenance of various sports facilities in the country
  • The 2019 National Budget is also focused on the implementation of the country’s regional football tournament
  • The 2019 National Budget will also support the upcoming 2019 national work program that aims to create 1500 jobs for young people

Environment & Climate Change

  1. Emergency Response

  • In order to strengthen the capacity and effectiveness of the nation’s emergency response during floods, hurricanes, droughts, etc., portion of the 2019 National Budget will be allocated to a disaster emergency fund.
  • The 2019 National Budget also provisions for the food security of people and livestock during droughts and displacements
  1. Environmental Protection

  • The 2019 Budget will also consider the protection and development of the environment

Fiscal Policy 2019


  1. Revenue Policy

  • Implementing Tax Control (Excise Tax).
  • Introducing a GST.
  • Introducing a Stamp Tax.
  • Introducing a tax on Rental Income (Rental Income Tax).
  • Developing and strengthening the tax administration System (Tax Administration).
  • Implementing Somaliland’s Financial Management Information System (SLFMIS), particularly in the revenue category
  • Control tax exemptions.
  • Encouraging entrepreneurs & investments in the country.
  • Implementing all revenue reforms.
  • Strengthening the collection of all payable taxes by local governments & Independent Institutions.
  • Strengthening the financial guard to support tax collection and prevent contraband.
  • Set up a tax tribunal (Tax Tribunal).
  • Each MDA will support the ministry of finance with revenue collection.
  1. Expenditure Policy

  • Implementing the provisions of the public financial management system, especially the public budget.
  • The 2019 budget should be prepared using the new Standard Chart of Accounts (Standard Chart of Accounts).
  • The 2019 Budget should be prepared using the new “SLFMIS” system as per the budget preparation module (SLFMIS, Budget Preparation Module).
  • Strengthening and implementing the government’s financial management information system (SLFMIS).
  • Provisions that have been made specifically for capital projects and for the compensation of employees should not be used for any other purpose.
  • Prepare and implement the 2019 Budget in order to guide budget expenditures.