Mar 10, 2011

Somaliland: Launching New Transparency Reforms

Public financial management reform was initiated by Somaliland authorities to welcome the transparency initiative from international community and to facilitate the foreign investments in development and poverty reduction projects.

Below is an article published by Somaliland Press:

Somaliland’s Ministry of Finance and vice-president Abdulrahman Abdullahi Ismail jointly launched a public financial management (PFM) reform programme in the capital on Wednesday.

The colorful function was participated by delegates from the World Bank, the African Development Bank, UK Department for International Development (DFID), UN-Habitat, EU, UN-JPLG, donors, various government departments, civil servants and media.

In recent months, the international community has decided to double its aid for Somaliland and as a result are demanding more accountabilities in place and transparency.

The government of Somaliland welcomed the new international initiatives and said it was “critical” for the international community to assist Somaliland in development and poverty reduction objectives.

Speaking on the occasion, the vice-president urged the public to pay their taxes saying it was essential in contributing to developing a stronger social fiscal contract and development.

The Government development strategy includes maintaining economic and fiscal sustainability, capacity development, and strengthening the PFM agenda to achieve more mutual accountability.

Eng. Mohamed Hashi Elmi, Minister of Finance said domestic revenue mobilization lies at the heart of economic development and growth as a critical means of raising revenues for achieving national development, poverty reduction objectives and sustainability.

Also at present were Minister of Planning and Development, Minister of Information, Asset Management body chairman, Anti-Corruption body President, Mayor of Hargeisa, MPs and NGOs.

On related development, Somaliland lawmakers approved a 2011 budget framework, sticking to a plan that relies on higher tax collection measures while keeping the rates at a flat five per cent. Their forecast will see the annual budget almost double from last year’s $50 million to $90 million under the new government. The government says it will not increase taxes but instead will be more productive in collecting, at the moment there are too many holes in the current system.

The law equally calls for more pro-growth campaigns and aggressive foreign investment.

To find the full statement by the Minister of Finance, eng. Mohamed Hashi Elmi on the occasion, please visit Somaliland Press