Why focus on Public Financial Management?
Reform of the public financial management (PFM) system is one of the top priorities of the Federal Government of Somalia (FGS). President Hassan Sheikh Mohamud has repeatedly emphasised the importance of well-managed, transparent public finances.
More transparent and accountable management of public finances will enable the Somali Government to pay salaries for security and the civil service, and to deliver services to the Somali public. This is necessary to reinforce the Government’s credibility and legitimacy; to underpin the future stability of the country; and to facilitate re-engagement of the International Financial Institutions who can provide economic expertise and in the long term large-scale funding.
Progress so far
The Government has carried out an assessment of the situation and developed a PFM reform plan. The plan sets out the Government’s intention to:
- improve the transparency and openness of the national budget process;
- focus public expenditure on priority areas of Government programs,
- enhance the efficiency and effectiveness of public expenditures and strengthen overall financial management and accountability.
Parliament has approved the Government’s 2012 mini-budget and 2013 annual budget. The Government has tightened revenue collection controls, removed commercial checkpoints in Mogadishu, and has stated its intention to outsource management of Mogadishu Port. Cumulatively, these actions have increased private sector confidence in government and tax revenues have increased by 15%.
What do we want the conference to achieve?
The conference should reinforce the Government’s progress in addressing PFM challenges and its priorities for future PFM reforms by:
- Welcoming and endorsing the Somali Government’s progress to date, and its future commitment embodied in the Somali-owned and led PFM reform plan.
- Committing to align behind the Government’s PFM reform plan provide co-ordinated and best practice support for its implementation;
- Committing to ensure funding for the implementation of the plan
- Committing to provide financing to support the Government’s recurrent costs as the Government expands its domestic revenue base and addresses other PFM challenges.
Visit the Somalia Conference 2013 website pages