Somalia Budget Falls 9% to US$1.26 Billion

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SOMALIA · BUDGET

The Somalia budget for 2027 stands at US$1.26 billion after the cabinet approved it on Tuesday 27 October 2026, about 9% less than this year. The Council of Ministers, as the cabinet is called, set the exact total at US$1,259,238,253, according to Somalia’s state news agency SONNA.

For US readers, the figure shows how little a fragile partner state plans to spend while it fights al-Shabaab and the UN political mission departs. Most of the money has come from donors, and in 2025 donors delivered less than half of the project grants they had promised.

What the Cabinet Approved

The special meeting in Mogadishu on Tuesday 27 October was chaired by Deputy Prime Minister Salah Ahmed Jama, who was acting for the prime minister. SONNA, the official Somali news agency, wrote the total as 1,259,238,253 dollars, which is about US$1.26 billion.

The government statement gave no split between security, salaries, public services and projects, Hiiraan Online reported in English. It also did not say when parliament will take up the draft.

A Smaller Somalia Budget Than This Year

Parliament passed the 2026 budget of US$1,386,807,242 on Tuesday 23 December 2025 by 174 votes to 4, with one abstention. The 2027 draft is about US$127.6 million lower, a cut of 9.2%.

Last year the cabinet approved its budget bill on 30 October 2025, and parliament voted 54 days later. A similar timetable would put the Somalia budget vote in late December, before the fiscal year opens on 1 January.

Who Pays for the Somalia Budget

The finance ministry’s mid-year report, a draft dated Tuesday 28 July 2026, shows that Somalia expected US$479.0 million of its own revenue in 2026. The ministry counted on another US$878.8 million in grants, nearly all from multilateral donors such as the World Bank, against total spending of US$1,386.8 million.

The security sector is budgeted at US$275.6 million, or 19.9% of that spending. Recurrent costs such as salaries make up 84.5% of the budget, leaving only US$215.5 million for development projects.

Grants Fall Short and Revenue Is Thin

In 2025, Somalia raised US$404.3 million of its own revenue, up from US$369.3 million a year earlier, the Accountant General’s annual report shows. Total revenue of US$919.8 million reached only 69% of the plan, and grants arrived at less than half of what was promised for projects.

The World Bank’s Public Finance Review of Monday 26 October put domestic revenue at 6.3% of output in 2025, against 15% to 17% in peers. The bank urged Somalia to widen its tax base, as Rio Times reported on 27 October.

A Budget Written Under Pressure

The cabinet met the same day it reviewed the war against al-Shabaab, the militant group that holds ground in central and southern Somalia. On Monday 26 October the army said it had killed about 75 fighters near Buurhakaba, as Rio Times covered.

Ministers also welcomed the end of the UN political mission, which closes on Saturday 31 October after years of advising the government. Rio Times explained that handover, which leaves Somali institutions with less outside support.

What It Means for US Readers

Washington has backed Somali forces against al-Shabaab for years, so a smaller Somalia budget raises the question of who pays for troops and services. Grant shortfalls and a thin tax base make Somalia depend on a few big donors.

US firms in shipping, telecoms and remittances deal with a government that raises little revenue and relies on grants. Any delay in passing the Somalia budget can slow payments to soldiers and civil servants, which matters for security and stability.

What Is Not Known

The government has not published the split of the Somalia budget between security, salaries, projects and elections, or the share expected from donors. It is also unclear whether parliament will keep the total at US$1,259,238,253 or change it.

The finance ministry has not said whether the lower figure reflects expected aid cuts or a plan to raise more tax. How much will actually be spent also depends on grants arriving, and in 2025 only 47% of project grants did.

More: Africa news in English, every day from The Rio Times.

Frequently Asked Questions

How big is Somalia’s 2027 budget?

The cabinet approved US$1,259,238,253, about US$1.26 billion, on Tuesday 27 October 2026. That is roughly 9% below the 2026 budget of US$1,386,807,242.

Is the Somalia 2027 budget final?

No, the Somalia budget draft still needs a vote in the federal parliament. Last year parliament passed the budget on Tuesday 23 December 2025, 54 days after the cabinet.

Who pays for the Somali government budget?

Donors pay most of the Somalia budget, with 2026 grants planned at US$878.8 million against US$479.0 million of domestic revenue. The World Bank is the largest single donor.

How much of the budget goes to security?

The 2027 breakdown of the Somalia budget has not been published. The 2026 plan put US$275.6 million, or 19.9% of spending, into the security sector.

Why does the Somalia budget matter to Americans?

The US backs Somali forces against al-Shabaab, and the state’s ability to pay soldiers and officials affects that fight. A budget that depends on grants that arrive short adds risk for US security and business interests.

Sources: SONNA, Somali national news agency (Somali), 27 October 2026; Hiiraan Online, 27 October 2026; Somalia Ministry of Finance, mid-year budget performance report FY2026 (draft), 28 July 2026; Dawan Africa, 10 August 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief