SOMALILAND 2025 BUDGET ANALYSES: HOW DECENTRALIZED IS IT?

The 2025 Somaliland National Budget was recently released, totaling $556.3 million, which represents an 11.3% increase from the $499.8 million budget in 2024. This growth reflects the government’s ongoing efforts to expand fiscal capacity, improve public services, and invest in infrastructure. However, it also highlights shifts in spending priorities and an increasing reliance on external funding sources. To provide a comprehensive assessment of this budget, the ISIR Institute has conducted a detailed analysis, structured across five key areas. The first level examines macroeconomic indicators, including GDP growth, inflation, exchange rates, and trade performance, offering insights into Somaliland’s broader economic stability. The second level provides a national budget overview, highlighting allocation trends and financial priorities. The third level focuses on the central government’s budget analysis, assessing both revenue generation and expenditure patterns, including a breakdown of sectoral allocations. The fourth level explores the local government’s budget, analyzing fiscal decentralization and regional resource distribution. Finally, the fifth level examines Public Enterprise funding and Foreign Aid, evaluating the role of state-owned enterprises and donor contributions in Somaliland’s fiscal framework.