MOGADISHU, Somalia – Somali Finance Minister Bihi Egeh has recently announced a notable increase in the country’s domestic revenue, demonstrating a positive trend in the first quarter of 2024.
The growth in domestic revenue is primarily attributed to the sectors of housing and transport, showcasing a significant development in the nation’s economic landscape.
In his quarterly report, Minister Egeh announced a 30 percent increase in domestic revenue, with housing and transport sectors being the major contributors during the initial months of 2024. This growth is a testament to the government’s efforts in enhancing revenue mobilization and improving fiscal management.
The increase in domestic revenue is a crucial step towards boosting the Federal Government’s capacity to fund its operations without further dependence on external sources.
The government’s commitment to strengthening the revenue collection system is evident in Minister Egeh’s recent activities. He has been actively engaging with stakeholders, including the Somali Chamber of Commerce, to discuss collaboration on various fronts, including the introduction of a new income tax bill.
Such measures are aimed at streamlining the process of revenue collection and ensuring that the country’s financial system is robust and capable of supporting economic growth.
Furthermore, the Somali government’s efforts to improve public financial management and enhance revenue mobilization have been recognized internationally. The International Monetary Fund (IMF) and the World Bank have played a pivotal role in supporting Somalia’s economic recovery and debt relief initiatives, reflecting the international community’s confidence in the government’s reform agenda.
Despite the positive developments, challenges remain. The government must address political tensions and improve fiscal transparency to ensure sustained economic growth. The Federal Government’s ability to mobilize domestic resources effectively will be critical in meeting its development objectives and securing the trust of international financial institutions.
In conclusion, Somali Finance Minister Bihi Egeh’s announcement of a 30 percent increase in domestic revenue is a significant milestone for the country’s economic recovery. It reflects the government’s commitment to implementing reforms and strengthening the financial system. As Somalia continues its journey towards economic stability and growth, the focus on domestic revenue mobilization and fiscal discipline will remain crucial.
