Investigative Reports

Organized Corruption: How Government Appointees and Employees Are Pillaging Coffers through their Private Companies

According to Somaliland government records examined by Somaliland Chronicle,...

Petty Theft, Forgery and Assault: How President Bihi Appointed a Common Criminal as a Human Rights Commissioner

The Somaliland National Human Rights Commission has distanced itself...

Somaliland Presidency Awarded No-Bid Contract with Inflated Cost to Redesign and Rebuilt War Memorial

Somaliland Government spent $222,153 US Dollars on the redesign...

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

National Election Commission Announced Nine-Month Delay of Presidential Elections

In their first press statement since sworn in, the...

Call to support Taiwan’s participation in ICAO

Wang Kwo-tsai Minister of Transportation and Communications Republic of China (Taiwan) The...

Somaliland Central Bank Governor Received an Honorary Doctorate from a Fake University

On July 29th, the Chairman of the Central Bank...

Somaliland: Swift political settlement is the only way forward

Constitutional acts, relevant terms and charters have repeatedly been...

Stay Connected

Don't miss

National Election Commission Announced Nine-Month Delay of Presidential Elections

In their first press statement since sworn in, the...

Call to support Taiwan’s participation in ICAO

Wang Kwo-tsai Minister of Transportation and Communications Republic of China (Taiwan) The...

Somaliland Central Bank Governor Received an Honorary Doctorate from a Fake University

On July 29th, the Chairman of the Central Bank...

Somaliland: Swift political settlement is the only way forward

Constitutional acts, relevant terms and charters have repeatedly been...

Breaking — Former High-ranking US Government Officials and Staunch Supporters of Somaliland due in Hargeisa

According to sources from the Ministry of Foreign Affairs...

National Election Commission Announced Nine-Month Delay of Presidential Elections

In their first press statement since sworn in, the new National Election Commission has announced that the constitutionally mandated presidential elections scheduled for November...

Call to support Taiwan’s participation in ICAO

Wang Kwo-tsai Minister of Transportation and Communications Republic of China (Taiwan) The International Civil Aviation Organization (ICAO) develops common regulations and standards for civil aviation. Countries around...

Somaliland Central Bank Governor Received an Honorary Doctorate from a Fake University

On July 29th, the Chairman of the Central Bank of Somaliland Mr. Ali Abdilahi Dahir, posted on social media that he has received an...