Ministry of Finance and Planning (Somalia)

Federal Republic of Somalia
Finance and Planning

Agency overview
Jurisdiction Somalia
Headquarters Bondhere, Banaadir, Mogadishu Somalia
Coordinates: 2°2′24″N 45°20′46″E / 2.04000°N 45.34611°E / 2.04000; 45.34611
Agency executive

Ministry of Finance and Planning was the ministry that was responsible for financial affairs in Somalia.[1] On 17 January 2014, newly appointed Prime Minister of Somalia, Abdiweli Sheikh Ahmed split the ministerial portfolio into Ministry of Finance and Ministry of Planning, respectively.[2]

In May 2013, the Somali federal government announced that it had launched a new Public Finance Management Policy (PFMP) in order to streamline the public sector's financial system and to strengthen the delivery capacity of the government's financial sector. Endorsed by the Somali Council of Ministers on May 2,[3] the reform plan has a robust fiduciary framework according to the African Development Bank (AfDB).[4] It is intended to serve as a benchmark for public financial management and the re-establishment of national institutions. The PFMP aims to provide transparent, accurate and timely public sector financial information by ameliorating the national budget process' openness, rendering more efficient and effective public spending, and improving fiscal discipline via both internal and external control. It also sets out to concentrate public expenditure on government priority areas. According to Cabinet members, the policy will cost an estimated $26 million and is expected to be fully implemented over the next four years.[3]

In February 2014, Minister of Finance Hussein Abdi Halane announced the establishment of a new financial governance committee. The panel is part of an effort by the central authorities to build a more transparent financial system in order to attract additional foreign budget assistance. It will see Somali officials confer with World Bank, International Monetary Fund and African Development Bank representatives, with committee members tasked with providing advice on financial matters.[5] On 29 March 2014, during a parliamentary session, Speaker of the Federal Parliament Mohamed Osman Jawari also announced that all withdrawals from the Central Bank would as of 1 April 2014 require the written approval of the parliamentary finance committee.[6]

In November 2014, the Ministry of Finance launched a new automated Somalia Financial Management Information System (SFMIS) in place of its former manual system. The SFMIS will support reforms made through the Public Finance Management Policy. It aims to strengthen administrative transparency in terms of asset recovery, contracts, concessions and other transactions, and to ameliorate the accuracy, comprehensiveness and timeliness of monetary reports in order to facilitate decision-making. In particular, the system will be centered on registering budget, revenue and expense related data. Electronic financial reports are also slated to be made available through the ministry's official website. The SFMIS' robust IT infrastructure will be installed in all of the Ministry of Finance's offices, as well as in major governmental agencies and partner institutions. Its implementation is funded by the World Bank, and is scheduled to be fully operational in January 2015.[7]

References

  1. ↑ "Somalia: Prime Minister Unveils His New Cabinet". Shabelle Media Network. 4 November 2012. Retrieved 5 November 2012.
  2. ↑ "Somali Prime Minister Unveiled His 55-Member Cabinet (Full List)". Retrieved 1 May 2014.
  3. 1 2 Khalif, Abdulkadir (3 May 2013). "Somalia adopts new finance policy". Africa Review. Retrieved 5 June 2013.
  4. ↑ Kaberuka, Donald (7 May 2013). "Somalia: From fear to hope – Getting it right in Somalia, President of the African Development Bank". African Development Bank Group. Retrieved 14 November 2013.
  5. ↑ Blair, Edmund (26 February 2014). "Somali minister cautiously plans new tax regime". Reuters. Retrieved 3 March 2014.
  6. ↑ "Somali parliament outlaws money withdrawals from Central Bank without their approval". SomaliCurrent. 30 March 2014. Retrieved 30 March 2014.
  7. ↑ "Somalia: Ministry of finance launched new financial management system". Goobjoog. 16 November 2014. Retrieved 4 January 2015.
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