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EAST · 2026 · Free publication

Somaliland 2026 Budget Analysis

Is the Budget Advancing Fiscal Decentralization and Inclusive Development?

Ahmedi Yusuf · June 2026

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Cover of EAST Somaliland 2026 Budget Analysis by Ahmedi Yusuf

$655M

Total national budget

62.5%

Central government

12.3%

Local governments

17.5%

Donor-financed projects

7.7%

Revenue-generating agencies

73%

Customs revenue

Executive overview

EAST examines whether Somaliland’s expanding 2026 budget translates into stronger local government and inclusive development. The national budget reaches approximately USD 654.99 million, but local government allocations fall slightly while central government and donor-financed projects grow. The analysis highlights dependence on customs revenue, the concentration of spending in security and employee compensation, and the need for predictable, equitable fiscal transfers. It provides evidence-led recommendations for revenue modernization, municipal finance and accountable public investment.

Budget split

Central government62.5%
Local governments12.3%
Donor-financed projects17.5%
Revenue-generating agencies7.7%

Share of national budget

Revenue

Customs revenue73%
Inland revenue27%

Share of central government revenue or spending

Spending by sector

Security and defence46.6%
Administration18.5%
Economy10.8%
Education6.5%
Health4.9%
Infrastructure4.3%

Share of central government revenue or spending

Sources and interpretation

Sources: Executive Summary and sector table, EAST report, June 2026. USD equivalents use the analytical budget rate SLSH 7,000 per USD, not market valuations. Values are rounded as printed. Budget split percentages refer to the national budget; revenue and sector shares refer to central government. The report uses revised 2025 comparators from the 2026 Appropriation Act, which differ from the original ISIR 2025 report.

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