Somaliland Cabinet Endorses Record $424 Million Budget for 2026, Citing Strong Revenue Outlook

By: Mohamed Duale

HARGEISA, Nov 29 (Horndiplomat) — Somaliland’s cabinet approved a record 4.58 trillion Somaliland Shilling budget for 2026 — about $424.5 million , during a meeting chaired by President Dr Abdirahman Mohamed Abdillahi Irro, the government said on Thursday.

The budget, the largest ever drafted by the republic of Somaliland, was presented in a detailed briefing by Finance Minister Abdilaahi Hasan Adan during the 43rd session of the Council of Ministers at the presidential palace in Hargeisa. Senior officials, including the Accountant General and the directors of finance and budgeting, attended the session.

Revenue Increase Marks Fiscal Turnaround

According to the Finance minister, government revenues for 2026 are projected to rise 22% compared with the 2024 budget, driven by improved tax administration, economic expansion and the recovery of earlier fiscal shortfalls.

The minister said the country faced an 11% average deficit across the 2022–2024 budgets, but the finance ministry had fully closed the 2024 deficit and expects revenue growth to continue into 2026.

“The projected increase reflects stronger domestic revenue performance and sustained economic stability,” the Finance minister said.

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The central government is allocated $265.4 million, an 11% increase from the 2025 estimates.

How the 2026 Budget is Structured

The 2026 national budget is divided into four main components:

• 63% — Central Government

• 12% — Local Governments

• 17% — World Bank & African Development Bank projects

• 8% — State-Owned Enterprises

The budget prioritises social services, defence, national security, infrastructure development and maintaining fiscal and macroeconomic stability, officials said.

Strong Cabinet Support

Forty-one ministers attended the session.
Of those, 40 voted in favour, one voted against, and none abstained, the presidency said.

President Irro urged ministers to approve the proposal so it could be sent to the House of Representatives on schedule.

Next Steps

The approved budget will now be forwarded to the House of Representatives for debate and final endorsement. If adopted, it will become Somaliland’s 35th national budget since it reinstated its self-governance in 1991, a milestone that reflects the gradual strengthening of state institutions over the past three decades. Officials say the expansion in annual fiscal planning is a sign of stronger revenue performance and growing administrative capacity.

Somaliland, with established government and security institutions, is also widening its external engagement as international attention increases on the Red Sea, the Gulf and the wider Horn of Africa. These areas have taken on greater importance for global trade, maritime security and geopolitical competition. That shift has contributed to renewed interest in Somaliland’s stability and its position along key commercial and security routes.

More updates expected — Horndiplomat.