# How Somalia's federal member states raise and spend money

> Revenue, grants and spending of Puntland, Jubaland, Galmudug, Hirshabelle and South West State in 2025, and federal transfers to the states.

Source page: https://calankii.com/en/economy/member-states-money/
Last checked: 2026-11-12
Publisher: Calankii (https://calankii.com)

## The states' money in 2025

All figures for 2025 come from Ministry of Finance data published by the [Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf).

**Puntland**
- Revenue and grants: $119 million, of which **$100 million was its own revenue** (84 percent): $83 million in taxes and $16 million in fees and charges.
- Donor grants: $19 million.
- Spending: $118 million, including $56 million in salaries, $43 million in goods and services, and **$18 million on building and equipment**, the most of any state.

**Jubaland**
- Revenue and grants: $70 million, of which $37 million was its own revenue ($28 million in taxes).
- Donor grants: $33 million.
- Spending: $68 million, including $41 million in salaries and $5 million on building.

**Galmudug**
- Revenue and grants: $33 million, of which $11 million was its own revenue.
- Donor grants: $22 million, about two thirds of the total.
- Spending: $29 million, including $11 million in salaries and $3 million on building.

**South West State**
- Revenue and grants: $26 million, of which $5 million was its own revenue.
- Donor grants: $21 million.
- Spending: $25 million, including $2 million on building.

**Hirshabelle**
- Revenue and grants: $24 million, of which $8 million was its own revenue.
- Donor grants: $17 million.
- Spending: $24 million, including $9 million in salaries and $1 million on building.

## What the numbers show

- Every state spent close to what it received, and most ended the year with a small surplus.
- Running costs, mainly salaries and goods, took 85 to 94 percent of each state's spending. Money for roads, buildings and equipment was small everywhere.
- Puntland raises most of its own money. South West, Hirshabelle and Galmudug depend mainly on grants.

All three points: [Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf).

## Money from the federal government

The federal government transferred about **$180 million** to the member states in 2025, up 12 percent from $160 million in 2024, against $239.5 million planned (same source).

The IMF recommends one shared sales tax between the federal government and the states, and stronger customs and income tax collection ([IMF, 5 October 2026](https://www.imf.org/en/news/articles/2026/10/05/pr26319-somalia-imf-staff-concludes-2026-article-iv-consultation-mission)). In the 2026 budget consultations, the Ministry of Finance noted that member states still collect and use their own taxes ([Ministry of Finance, 2026 Budget Consultation Report](https://archive.mof.gov.so/sites/default/files/Publications/2026%20Budget%20Consultation%20Report.pdf)).

## Next year

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)).

## Not covered here

Banadir (Mogadishu) is run by the Banadir Regional Administration, and Somaliland keeps its own accounts. See [The economy of Somaliland](/en/economy/somaliland-economy/) and [The federal budget and taxes](/en/economy/budget-and-taxes/).

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