EU disburses $9 million in support of Somalia’s budget

In support of the Federal Government of Somalia’s annual budget, the European Union (EU) has disbursed $9 million, an amount that could cover deficits realized during the budget-making processes in the country.

An official statement released by the European Union noted that the backup was realized following Somalia’s microeconomic stability on public reforms in financial management which has enhanced service delivery.

The payment, the EU underscores, is part of Somalia’s State and Resilience Building Contract which aims at strengthening the government's capacity to realize domestic revenues besides promoting federalism and its budget.

Ms. Karin Johansson, EU Ambassador to Somalia, stated that the disbursement reflects the EU’s commitment to supporting Somalia’s efforts in financial accountability and transparency.

“The disbursement signals the EU’s strong support of Somalia’s progress in managing its public finances and highlights the EU’s dedication to the EU-Somalia Joint Operational Roadmap,” she said.

Bihi Iman Egeh, Somalia’s Minister for Finance and Economic Planning, thanked the European Union for providing essential funding that has enabled reforms in the country. Somalia will recover from years of instability, he said.

“EU budget support provides essential funding and assistance to the federal government to implement key financial governance reforms and significantly enhance the provision of basic social service delivery in Somalia,” the finance minister said.

For six years, the EU has provided a total of €101.4 million in budget support to Somalia through SRBCs. This support has played a crucial role in helping Somalia reach the Heavily Indebted Poor Countries (HIPC) Completion Point and strengthen fundamental state functions.

GAROWE ONLINE