# Somalia's federal budget and taxes > How Somalia's federal government and member states raise and spend money: the 2026 budget, taxes, grants, salaries, and each state's own accounts. Source page: https://calankii.com/en/economy/budget-and-taxes/ Last checked: 2026-11-12 Publisher: Calankii (https://calankii.com) ## The 2026 and 2027 budgets Parliament approved the federal budget for 2026 on 23 December 2025, at **$1,386,807,242**, by 174 votes to 4 with one abstention ([Hiiraan Online](https://hiiraan.org/news4/2025/Dec/204011/somalias_parliament_approves_139_billion_national_budget_for_2026.aspx); [Garowe Online](https://www.garoweonline.com/en/news/somalia/somalia-s-parliament-approves-1-38-billion-2026-budget-amid-chaos)). Donors were expected to cover about two thirds of it ([Garowe Online](https://garoweonline.com/index.php/en/news/somalia/somalia-parliament-approves-1-3b-budget-donors-cover-66-7)). On 27 October 2026 the Council of Ministers approved a draft 2027 budget of **$1,259 million**, about 9 percent less than 2026. It still needs a vote in Parliament ([The Rio Times, citing SONNA](https://www.riotimesonline.com/somalia-budget-2027-us-1-26-billion-cabinet-2026/)). ## What came in, 2025 All figures from the [Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf), based on Ministry of Finance data: - **Total revenue and grants:** $920 million, against a budget of $1,332 million (69 percent received). - **Domestic revenue:** $404 million, 94 percent of target and up 9 percent on 2024. It has nearly doubled from $211 million in 2020. - **Taxes:** $283 million, up 6 percent. - **Other domestic revenue (fees, licences, charges):** $122 million, up 19 percent. - **Grants from donors:** $516 million, against a budget of $902 million. Multilateral bodies such as the World Bank gave $497 million. Bilateral grants from single countries were only $19 million, against $170 million budgeted. ## What went out, 2025 Same source: - **Total spending:** $971 million, 71 percent of the budget. - **Salaries:** $371 million, the largest item, fully paid and up 9 percent. - **Goods and services:** $254 million. - **Transfers to federal member states:** about $180 million, up 12 percent. - **Building and equipment (capital):** $75 million, up 162 percent but only 41 percent of plan. - **Social benefits:** down 88 percent from 2024, as aid for these programmes fell. - **Deficit:** $51 million, about 0.4 percent of GDP. The IMF projects a deficit of 0.9 percent of GDP for 2026. It advises stronger customs and income tax collection and one shared sales tax between the federal government and the states ([IMF, 5 October 2026](https://www.imf.org/en/news/articles/2026/10/05/pr26319-somalia-imf-staff-concludes-2026-article-iv-consultation-mission)). ## The member states' own money, 2025 Each federal member state runs its own budget. Figures from the [Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf): - **Puntland:** $119 million in revenue and grants, of which $100 million was its own revenue. It spent $118 million, including $18 million on building. - **Jubaland:** $70 million, of which $37 million was its own revenue and $33 million grants. It spent $68 million. - **Galmudug:** $33 million, of which $11 million was its own revenue. It spent $29 million. - **South West:** $26 million, of which $5 million was its own revenue. It spent $25 million. - **Hirshabelle:** $24 million, of which $8 million was its own revenue. It spent $24 million. Puntland's cabinet approved a 2027 budget of more than $308 million ([Dawan Africa](https://www.dawan.africa/news/puntland-cabinet-approves-2027-budget-exceeding-dollar308-million)). ## Somaliland Somaliland's cabinet approved a record 2026 budget of about **$424.5 million** (4.58 trillion Somaliland shillings) in November 2025 ([Horn Diplomat, 29 November 2025](https://www.horndiplomat.com/somaliland-cabinet-endorses-record-424-million-budget-for-2026-citing-strong-revenue-outlook/)). A presidential decree of 23 December 2025 put it into effect ([Somaliland Standard](https://somalilandstandard.com/the-president-of-the-republic-of-somaliland-issues-a-presidential-decree-on-the-execution-of-the-2026-national-budget)). ## How it compares Federal revenue and grants were about 7 percent of GDP in 2025 ([Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf)). Domestic revenue alone was about 3 percent of GDP. A share this low means the state pays for few services itself, and much of the work in schools, health and water is still paid for by donors, families and private firms. ## Where to read the originals The Ministry of Finance publishes budget documents, mid-year and end-year reports ([Ministry of Finance archive](https://archive.mof.gov.so/sites/default/files/Publications/FGS%202025%20end-year%20budget%20performance%20report.%20.pdf)). --- I want to help with this: email hello@calankii.com. 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