The Somali government is facing a budget deficit at the end of this year and the next.
The Central Government has failed to generate good financial resources in the country due to reasons…
1. It failed to implement the Federal Tax Unification Policy.
2. It does not consolidate internal revenue.
It also failed the Central Government to meet the conditions to receive foreign loans…
A. It failed to integrate domestic politics, which is important for foreign trust.
B. It has not demonstrated transparency and credibility in the fight against corruption.
C. It has not maintained a balanced budget.
In September, this year, is the month that Somalia has to meet the requirements to go through the plan to be recognized as a self-sufficient country that can take loans, and it does not appear that it will be implemented.
There are several points of hope, namely as below.
1. To extend this program for a period of 6 months.
2. To continue the aid to Somalia and let it remain a country that is not self-sufficient.
3. That, the World Bank, with the help of Saudi Arabia and Kuwait, given to Somalia a monthly budget for several months.