President Abdirahman Irro mandates all government revenue be centralized under the Ministry of Finance to curb mismanagement and boost public trust.
Somaliland President Abdirahman Mohamed Abdullahi Irro has ordered all ministries and agencies to transfer collected revenues to the Ministry of Finance. This policy marks a significant step toward addressing long-standing issues of fiscal mismanagement and ensuring that Somaliland’s limited resources are effectively utilized.
During a cabinet meeting in Hargeisa, President Irro underscored the importance of proper revenue management. “It is unacceptable for the person generating the revenue to spend it,” he declared, emphasizing that the Ministry of Finance must oversee all disbursements.
The directive is part of a broader push to eliminate financial opacity and prevent revenue-collecting agencies from engaging in unauthorized expenditures. The president highlighted the Ministry of Aviation as a model for adopting these reforms, urging other ministries to follow its example and adhere strictly to approved budgets.
A significant aspect of the new measures is the suspension of unauthorized tax exemptions granted to private companies in recent years. President Irro emphasized that these illegal tax breaks had eroded government revenues and undermined trust in public institutions. By putting an end to these practices, the administration aims to restore confidence in its financial governance and ensure fairness in the tax system.
The Ministry of Finance has been tasked with enforcing these changes and conducting a mid-year review to identify areas for further adjustment. This proactive approach is intended to assess the effectiveness of the new measures and adapt to emerging challenges.
In addition to internal reforms, President Irro emphasized the importance of building strong relations with the international community. By fostering partnerships and securing external financial assistance, Somaliland aims to support its developmental goals and navigate the economic challenges it faces as an unrecognized state.
The focus on transparency and fiscal discipline is likely to resonate positively with international donors and investors, who often cite good governance as a key criterion for financial support.
While these reforms signal a commitment to accountability, their success will depend on consistent enforcement and a cultural shift within government agencies. Resistance from entrenched interests or agencies accustomed to financial autonomy could pose significant obstacles.
However, if successfully implemented, these measures could strengthen Somaliland’s public institutions, improve budgetary efficiency, and attract greater support from international stakeholders. Moreover, aligning financial activities with approved budgets will enhance the government’s ability to invest in critical sectors such as education, healthcare, and infrastructure.
President Irro’s directive to centralize revenue management represents a pivotal moment in Somaliland’s pursuit of financial transparency and good governance. By cracking down on illegal tax breaks and streamlining fiscal operations, the administration is laying the groundwork for sustainable economic growth and international credibility.
If these reforms are executed effectively, they could not only improve Somaliland’s fiscal health but also solidify its reputation as a self-reliant and well-governed entity in a region often marred by corruption and inefficiency.
