INTERNATIONAL MONETARY FUND
SOMALIA─STAFF VISIT TO NAIROBI
AIDE-MÉMOIRE
SEPTEMBER 19, 2014
2
I. INTRODUCTION
1.
We thank the Somali authorities for the fruitful and informative discussions that
we have had with them in Nairobi during September 9–19, 2014. We are encouraged by
the size and level of the delegation that travelled to Kenya to meet with the IMF mission,
including Finance Minister Halane, Central Bank Governor Ali, and Deputy Planning and
International Cooperation Minister Sheikh Ali. The enthusiastic and productive deliberations
with the IMF team demonstrate the importance that the authorities attach to these discussions
and their eagerness to maintain a close dialogue with the IMF.
2.
This mission carries forward the discussions held in May in Nairobi, and should
be seen as part of an ongoing exchange of views between the IMF staff and the
authorities. It looks forward to continuing these deliberations during the upcoming
IMF/World Bank Annual Meetings in Washington DC. It was also tentatively agreed that a
follow-up staff visit would meet with the authorities around January/February 2015.
II. RECENT ECONOMIC AND POLITICAL DEVELOPMENTS
3.
Despite daunting challenges, the Ministry of Finance (MoF), Ministry of
Planning and International Cooperation (MoPIC), and the Central Bank of Somalia
(CBS) are working toward discharging their responsibilities to manage the economy. In
May 2014, the Federal Parliament approved a revised government budget of US$216 million
for the fiscal year 2014 (January to December), nearly doubling the size of the 2013 budget
of US$117 million. In April, Mr. Bashir Issa Ali was appointed Governor of the CBS, a post
that he had occupied ad interim since November 2013. Ms. Maryam Abdullahi Yusuf was
also confirmed as Deputy Governor, together with the remaining members of the Board of
Directors.
4.
Despite recent successes, the security situation in Somalia remains challenging.
Significant gains have been achieved in recent months by the Somali army, supported by the
African Union Mission in Somalia
Somalia: Social Indicators
2012 1/
(AMISOM) and U.S. forces. Nonetheless,
Somalia
SSA 2/
sporadic and brazen attacks continued to be
Life expectancy at birth (years)
55
56
staged by Al-Shabaab. These attacks have
Mortality rate (per 1000 births)
resulted in numerous fatalities, significant
Infant
91
63
destruction of property, and disruption of
Under the age of 5
147
96
Access to improved water source
food and aid supplies.
5.
Social conditions in Somalia are
among the worst in the world. The
humanitarian crisis has been further
exacerbated by continued Al-Shabaab
attacks on supply routes in southern and
(percent of population, 2011)
Access to improved sanitation
(percent of population, 2011)
Mobile cellular subscription
(per 1000 people)
1/ Unless otherwise indicated.
2/ SSA stands for Sub-Saharan Africa.
Source: World Bank Development Indicators .
32
64
24
30
23
60
3
central Somalia. Rates for infant mortality are about 50 percent higher, and access to clean
water about 50 percent lower, than those in Sub-Saharan Africa. Close to three million
people (about 25 percent of the population) remain in dire need of immediate lifesaving
support, reflecting absent or inadequate basic social services. Some 635,000 displaced people
live in makeshift camps and settlements, where they rely on foreign assistance to meet
essential needs; including shelter and water, sanitation and hygiene, and basic health and
education services. To add to these challenges, Somalia is one of just a few countries where
polio has recently reemerged. After several emergency campaigns involving the
immunization of more than two million children under the age of five, transmission has
fortunately declined, and no new cases have been recorded country-wide in 2014.
III. POLICY DISCUSSIONS
6.
Policy discussions focused on three areas:

enhancing macroeconomic statistics and developing the legal framework;

strengthening the central bank and the broader financial sector; and

improving public finances.
7.
A key finding of the mission is the need to address budget pressures urgently.
Due to underperformance of domestic revenue collection, and marked expansion of the
public sector wage bill, the 2014 budget outcome is expected to have a deficit of about
US$27 million with arrears as the primary source of financing. Meanwhile, the share of
external grants is large and growing. To bring the budget onto a sustainable foundation, the
formulation of the 2015 budget should be based on a “top-down” approach, underpinned by a
realistic revenue forecast that dictates the expenditure envelop for a strictly cash balanced
budget. The government should seek consensus on the importance of prudent budgeting and
a resource-envelop-based approach to setting the expenditure ceiling.
A. Macroeconomic Statistics
8.
The importance of reliable macroeconomic statistics has been recognized by the
authorities. Compilation of key macroeconomic statistics will help estimate the size of the
Somali economy, improve macroeconomic management, and provide the basis for
conducting Article IV discussions that could lead to a staff-monitored program (SMP).
Discussions on, and the execution of, an SMP will, in turn, be contingent on the authorities’
capacity to compile and report key economic data on a timely basis, as well as implement
agreed economic policies. To this end, the mission provided assistance in the areas of
national accounts and balance of payments (BoP) compilation, as well as institutional
statistical practices. At this stage, however, national accounts and external sector estimates
and projections are rough estimates because they are not supported adequately by source
data. As the scope and quality of supporting data improve significant revision are likely.
4
National accounts
9.
The mission updated the initial GDP estimates that were constructed with the
staff of the MoPIC in May 2014. The GDP estimates were based on: (i) final consumption
expenditure by households and the Federal Government of Somalia (FGS); and (ii) value
added for key industries identified by the Somali authorities. The four industries that
contribute the bulk of economic activity and value added, as identified by the authorities in
May 2014, remain the same. They are: (i) remittance activities by money transfer companies
(classified under financial services); (ii) telecommunications; (iii) agriculture, livestock, and
fisheries; and (iv) wholesale and retail trade. A few components of GDP were updated, based
on recent information and discussions with the authorities, including final household
consumption expenditure that reflects a significantly larger estimate for Somalia’s population
(13 million),1 and updated estimates for trade. The mission also produced the first set of BoP
data. Finally, the mission advised the authorities on best practices regarding the institutional
arrangements for the statistical office.
10.
The economy is thought to have expanded by about 4½ percent in 2013 in
nominal terms. Real economic growth could not be estimated at this time, absent a reliable
estimate of the GDP deflator and broader price developments. Household consumption
increased by 4½ percent, driven by population growth and returning members of the
Diaspora. Government final consumption expenditure increased by 147 percent, as
government activity under the FGS expanded its coverage. International trade in goods and
services continued to expand. Reflecting stronger confidence from the improving security
situation, gross fixed capital formation is estimated to have increased robustly (about 26
percent).
Somalia: Final GDP Demand Components, 2012-2014
(In millions of current US dollars)
2012
2013
Household final consumption expenditure
9,490
9,917
Government final consumption expenditure
10
275
Gross fixed capital formation
23
300
Exports of goods and services
57
766
Imports of goods and services
2,814
2,835
GDP
7,592
8,423
Sources: UN Comtrade, Somali authorities, and IMF staff estimates.
1
The initial GDP estimate was based on a population estimate of 10 million people.
2014 Proj.
10,363
40
31
80
2,972
8,916
5
11.
The mission projected nominal GDP growth in 2014 of about 6 percent in 2014.
Agriculture, forestry and fishing are the most significant industries and are forecast to grow
by 6½ percent. Other important industries are information and communications, and
wholesale and retail trade (each growing by an estimated 4½ percent). These results are
predicated on moderate improvements in law-and-order conditions across Somalia.
Somalia: Value Added by Sectors, 2012-2014
(In millions of current US dollars)
2012
2013
Agriculture, forestry and fishing
Crop and animal production and related services
Forestry and logging
Fishing and aquaculture
Wholesale and retail trade; repair of vehicles
Information and communications
Financial and insurance services
Other industries
Net taxes on products
4,935
3,796
152
987
759
911
380
531
76
5,660
4,352
175
1,133
793
952
397
545
76
2014 Proj.
6,021
4,630
186
1,206
829
995
415
577
80
GDP
7,592
8,423
8,916
Sources: UN Comtrade, Somali authorities, and IMF staff estimates.
12.
Using purchasing power parity (PPP), the mission estimated Somalia's GDP per
capita at US$1,232. Comparisons of production levels using nominal exchange rates are of
limited utility given that the latter are impacted by factors other than production (such as
transfers and currency speculation).Using a combination of existing MoPIC price series and
informed judgment, the mission estimated prices in Somalia to be about one half of those in
the United States. As shown in the chart below, this would place Somalia in the lowest decile
of the April 2014 World Economic Outlook countries, as well as most neighboring
economies.
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Purchasing Power Parity (in U.S. dollars)
Somalia
Ethiopia
Uganda
Yemen
Djibouti
6
Balance of payments
13.
The mission produced a BoP for 2013 (Table 1). The current account is estimated
to have closed the year with a deficit of US$387 million. Somalia is believed to have
exported goods and services on the order of US$700 million and imported goods and services
of about US$2.8 billion. Remittances amounted to about US$2 billion and grants to US$162
million. The current account deficit was financed by capital transfers, estimated at US$100
million, and foreign direct investment, estimated at US$227 million. Most donor support was
provided through off-budget payments, directly financing large infrastructure and capital
projects, as well as wages of some military and security personnel. The IMF is planning to
provide TA in external sector statistics in early 2015.
14.
Little progress was made on compiling price indices. As important inputs for this
exercise, the IMF staff is awaiting the results of a survey of household expenditures, which
has been delayed. Due to security, staffing and capacity limitations, the MoPIC has only been
collecting, on a sporadic basis since 2000, the average prices of 102 basic products in the
Mogadishu area. Once the World-Bank-led household expenditure survey has been
completed (expected later in 2014), IMF staff will assist the authorities in calculating
weighted average household consumption, and a consumer price index (CPI). The IMF’s
Statistics Department (STA) is also planning to provide training for the Somali Statistics
Office staff on CPI compilation by end-2014.
Data dissemination
15.
The MoPIC launched its new website and hopes to publish some statistical data
soon. While various data are still rudimentary, it was agreed that within the next three
months, the Statistics Office will start publishing the macroeconomic statistics and metadata
notes developed during the staff visit in May 2014, as well as the data developed during the
current mission. More specifically, these will include: (i) the GDP and BoP figures for 2013
and projections for 2014; and, (ii) the dissemination guidelines and notes for Government
Finance Statistics (GFS); BoP; and price data.2 All of these statistics currently suffer from
significant under-coverage and data gaps. Consequently, they are not suitable for
macroeconomic analytical purposes. Notwithstanding these imperfections, the publication of
these data sets—with proper documentation and explanations—would, over time, improve
transparency, inform policymakers and other stakeholders, and enhance the Statistics
Office’s visibility.
16.
Government support is essential to establishing an independent Statistics Office.
The mission offered the IMF’s legal and technical support in formulating the mandate and
designing the legal framework of an independent Statistics Office, as well as in training its
2
GFS and MFS guideline documents were included in the May 2014 mission background note.
7
staff. To this end, the proposed Multi-Donor Trust Fund for Capacity Development (TF)
would provide a suitable vehicle for scaled-up delivery of technical assistance. It is hoped
that the Trust Fund could be operational in early 2015, once the required threshold of
commitments has been secured from the donor community. While acknowledging the
importance of establishing an independent Statistics Office, the authorities indicated their
desire to develop a medium-term strategy to build such an independent agency, noting that, at
this time, the Parliament was facing a large backlog of pending legislation.
B. Financial Sector Issues
17.
The CBS continues to address its daunting challenges. The economy is
predominantly dollarized. Since the CBS does not control the money supply, its ability to
conduct monetary policy is nonexistent. Central bank management is pushing forward with
efforts at modernizing the institution, including through the appointment of a Board of
Directors in April 2014; finalizing financial statements for 2013; tackling human resource
issues; and implementing its work program. The IMF stands ready to continue to provide TA
and hands-on training to assist the CBS with its efforts.
Central bank balance sheet
18.
CBS has prepared financial statements for 2013 and is strengthening its
accounting department. The CBS needs to set out a plan for dissemination of its 2013
financial statements consistent with the CBS Act, which requires auditing and publishing the
financial statements. The preliminary balance sheet as of end-2013 shows assets of
US$58.8 million, the main items being US$19.5 million in gold, US$19.5 million in
property, equipment and software, US$11.4 million in foreign assets, and US$7.0 million in
cash dollars (Table 2). Key liabilities were US$9.0 million in recovered foreign government
assets and government deposits of US$5.4 million. Since the value of Somali shillings in
circulation issued by the CBS is not known, data on this liability has not been included. The
residual CBS equity and reserves was US$42.8 million. In the first eight months of 2014,
preliminary data indicate that CBS cash in vault declined by US$2.4 million, mostly
reflecting cash withdrawals by Parliamentarians (US$1.2 million) and a reduction in
government deposits of US$0.6 million. Separately, CBS claims on government were
reduced by US$0.7 million.
19.
The CBS intends to strengthen its accounting systems and internal controls.
Improved systems and controls should allow the CBS to produce timely reports and achieve
compliance with International Finance Reporting Standards as required by the CBS Act.
Modernizing the information technology system and accounting software of the CBS will
underpin its financial reporting, which would enable production of data that are critical to
conduct central banking policies and operations effectively. In this connection, the CBS
should balance strategic needs and medium-term priorities with a view toward having the
capacity to produce regular reports without overburdening the accounting systems. As a step
8
toward improving the audit of the 2014 financial statements, it would be important to have
auditors in place before the end of 2014 to verify the end-2014 cash count.
20.
The IMF will continue to support the CBS in its efforts to develop its accounting
function and financial reporting, as well as other essential central banking functions.
The Fund has an extensive program of training and TA. It will be further buttressed once the
TF becomes operational by early next year.
Central bank governance
21.
The CBS is in the process of strengthening its governance structure. The
recently-established Board of Directors has started operating in line with the requirements of
the CBS Act. To enhance its effectiveness, the IMF is scheduled to provide training to the
newly appointed CBS Board members in Djibouti in early December. In addition, the role of
the CBS as fiscal and financial agent of the government was strengthened by a recentlyadopted Memorandum of Understanding (MoU) with the MoF. Over time, implementation of
the MoU should enhance public financial management.
22.
In coming months, the Fund stands ready to assist the CBS in preparing
additional by-laws to those that Fund staff has already provided. Agreed near-term
priorities include drafting rules and procedures that are based on authority provided in the
CBS Act, including establishing specialized CBS committees; strengthening financial
reporting, accounting, and auditing processes.
23.
Over the medium term, additional by-laws could cover several topics, including:







Governance and organizational structure;
Legal functions at the CBS;
Administrative procedures and penalties;
Collecting and handling statistics and information, confidentiality issues;
Financial operations and financial instruments;
Procedures for effective risk management; and
Handling conflicts of interest, and code of conduct.
Financial sector developments
24.
As of early September 2014, the licensed financial sector consisted of eight
money transfer businesses (MTBs) and five banks. To reduce disincentives to comply
with licensing and registration requirements, the CBS significantly lowered fees for MTBs
and simplified the process by using application forms that were created in consultation with
them. At this stage, the CBS is providing registration and provisional licenses. These
processes and practices need to be significantly strengthened.
9
25.
The mission supports the authorities’ priorities to modernize the licensing,
regulation, and supervision regimes for banks. A multi-stage Fund assistance program in
supervision was launched in early September with a TA mission that focused primarily on
bank licensing issues.3 Additional Fund TA missions are planned to cover remaining key
supervisory areas.
CBS organization and human resource issues
26.
The CBS is considering a major organizational restructuring and enhancing its
human resource function. The CBS is facing formidable challenges in these areas and the
Fund is prepared to provide targeted assistance in this endeavor. The mission recommends
that a new organization structure be designed based on tested principles. These principles
originate from the ranked objectives for a central bank, and a delineation of core central
banking and support functions.
AML/CFT
27.
The CBS needs to prepare a strategy for adopting an appropriate framework for
anti-money laundering and combating the financing of terrorism (AML/CFT). While an
AML/CFT bill has been drafted and is not supported by regulations or related practices. Civil
society and international partners are concerned about the absence of an internationallyrecognized financial integrity regime in Somalia to detect and prevent financial flows that
could finance terrorism or launder money. TA in this and related areas is being provided by
key partners, including the World Bank and the United Nations.
Financial Governance Committee
28.
CBS governance is one of the core areas that the Financial Governance
Committee (FGC) is tasked with overseeing. The mission noted that the Fund is providing
an advisor to the FGC with a primary focus on central bank governance. The work of the
FGC has led to progress with respect to a more transparent regime for public procurement
and the awarding of commercial concessions. Regarding the recovery of financial assets,
progress is being made to enhance the role of the CBS in mobilizing frozen assets and
managing recovered assets.
C. Fiscal Issues
29.
The 2014 budget is under severe stress from rising pressures to spend against the
backdrop of limited revenue mobilization (Table 3). Expenditures in 2014 were budgeted
to increase 84 percent over 2013, reflecting in part the addition of over 20 ministries and
3
Training in licensing issues related to MTBs is provided by the World Bank.
10
budget units. Although domestic revenue performance from international trade and recovery
of assets from abroad has been strong for the first 8 months (January to August 2014), other
domestic revenue aggregates are seriously underperforming. The likely outcome for 2014 is
for domestic revenues to undershoot budget forecasts by about 18 percent (about US$21
million), to be offset in part by a significant increase in donor support in the last 4 months, as
anticipated by the authorities. If these receipts indeed materialize, the overall deficit for 2014
will be about US$27 million, little changed from the budget deficit that was approved by the
Parliament earlier this year.
30.
There are no plans to amend the expenditure envelope in light of the revenue
shortfall. Given that the government has very limited scope to finance the gap through
borrowing, this would imply that expenditure arrears of about US$27 million will be carried
into 2015. The recourse to arrears accumulation highlights the need to strengthen strategic
budget formulation and implementation, and exercise prudence when forecasting revenue, in
order to develop a fiscally sustainable budget. The application of fiscal principles and rules
and implementing a “top-down” approach should underpin budget strategy preparation and
execution.
31.
The approved budget for 2014 continues to highlight severe deficiencies in
budget formulation. Despite strong forecast growth in revenue, the budget deficit was
projected, at the outset, at US$28 million (about 24 percent of domestic revenue),
notwithstanding that the financing for the deficit was not identified. Revenue (including
grants) mainly comprises two categories—trade taxes and grants—with significant undercollections in other categories.

Domestic revenues: Based on collections for the first 8 months, the revenue forecast
is very optimistic, and a more realistic projection would be about US$181 million
(including grants), implying a shortfall of about US$8 million. Moreover, the ratio of
domestic revenues to total revenues (including grants) continues to fall, from the
budgeted level of 61 percent to a forecast of 53 percent, which would imply
increasing reliance on foreign grants to fund government operations. While there has
been impressive growth during 2012–14 in nominal domestic revenues from
international trade; these are still expected to undershoot the budget target for 2014.
There is also a significant underperformance in other domestic tax categories vis-àvis budget targets (US$25 million), owing in part to delays in adopting the legislation,
and weak tax administration. This also highlights the need for realistic and
conservative budget projections during the budget formulation process.

Donor support: Offsetting lower domestic taxes is an anticipated increase of
18 percent in donor support compared to budget. However, there are large changes in
the composition and level of donor contributions reflecting the unpredictability of
these flows. Actions suggested by the authorities to deal with the immediate cash
11
shortage are directed at seeking increased international budgetary assistance, as well
as promoting improvements in domestic revenue mobilization.

Expenditures: The large expansion in the number of ministries and government units
in 2014 has left Somalia with a payroll-centric budget, with wage compensation
consuming an ever-increasing share of expenditure. In 2014, the wage bill is forecast
to increase by 70 percent over 2013, and consume about 45 percent of total
expenditure, crowding out investment and other spending for important social
services, including health and education. A set of principles to guide the preparation
of the 2014 budget had been recommended to the government during the October
2013 staff visit. However, not all of these principles and fiscal rules appear to have
been applied in preparing the 2014 budget; hence the large expansion in the wage bill.
32.
The immediate challenge for the government is to focus primarily on the revenue
side of the budget before considering further expansion of expenditure. The mission
reiterated appropriate steps to raise revenue, including: (i) commencing efforts to design laws
and regulations to broaden the tax base; (ii) improving tax administration and collections;
and (iii) enhancing efforts to identify and secure reliable budget support from the
international community. Strategies need to be developed and implemented for revenue
growth, including improved understanding of the likely volume and timetable associated with
the recovery of assets from abroad, and whether these should be treated as revenues or oneoff financing.
33.
The authorities should adopt a “top-down” approach to budget formulation.
Under this approach a Budget Strategy Committee led by the MoF would oversee the
preparation of a detailed revenue forecast, which would be endorsed by Cabinet. This would
then define the budget envelope that would be applied to limit expenditures by issuance of
Cabinet-endorsed expenditure ceilings to all ministries and budget units. The Committee
would ideally include senior representatives from the Prime Minister’s Office, the MoF, the
MoPIC, and other key ministries. The Committee should also develop a plan to clear
expenditure arrears over a realistic timeframe.
34.
The government should publically endorse appropriate principles and fiscal
rules to guide future budget preparation. This would provide the basis to ensure the
formulation and execution of fiscally sustainable budgets. Endorsement of a set of credible
principles and rules will indicate to the public and the international community the
willingness of the government to bring the budget under control. The mission has reiterated a
few important principles, including the need to: (i) prepare budgets on a zero-cash-balance
basis; (ii) limit expenditure budget to funds under the immediate control of the authorities;
and (iii) to set in law the rules for sequestering (prioritizing) expenditures, in the event that
rationing becomes necessary. Fiscal rules are generally suggested to assist in ensuring the
fiscal sustainability and composition of the budget. These could include: (i) setting a
medium-term target for the share in total expenditure of wage compensation and capital
12
spending; (ii) treating arrears on a first-charge basis for repayment; and (iii) limiting
borrowings from the central bank to within-year cash flow needs and repaying such
borrowings before the end of the year. A further fiscal rule that could be considered is to aim
for current government spending to be covered by domestic revenues by a certain target year
(say by 2020), and thereby free up and direct foreign grants to finance critical investment
activities.
35.
The ability of government to manage the budget requires access to accurate and
timely fiscal data. The government therefore should accelerate efforts to implement, by
January 2015, a transactions-based Somalia Financial Management Information System
(SFMIS). This system would allow the comprehensive ex-ante recording of all liabilities
prior to their payments. Once fully implemented, the SFMIS should be utilized to inform
policymakers of the budget implementation in a timely manner—thus allowing for
meaningful corrections, as needed, in real time—and provide regular and timely fiscal reports
to Parliament and the Somali people.
13
Table 1. Somalia: Balance of Payments 2013-14
(In millions of U.S. dollars)
2013
Current account balance
Trade balance
Exports, f.o.b.
Imports, f.o.b.
Income (net)
Receipts
Payments
Current transfers (net)
Private 1/
Official 2/
2014 Proj.
-387
-2,069
766
-2,835
-475
35
-510
2,157
2,115
42
-375
-2,166
806
-2,972
-500
36
-536
2,291
2,205
86
387
100
287
227
60
375
100
275
215
60
Errors and omissions
0
0
Overall Balance
0
0
8,423
8,916
Capital Account and Financial Account
Capital account
Financial account (net)
Foreign direct investment and portfolio (net)
Other net capital flows
Memorandum item:
Nominal GDP (in millions of U.S. dollars)
Sources: Somali authorities; and IMF staff estimates and projections.
1/ Includes remittances and off-budget grants.
2/ Includes direct budget support.
14
Table 2. Somalia: Summary Accounts of the Central Bank of Somalia, 2013
(In thousands of U.S. dollars)
2013
Est.
Foreign assets
Gold 1/
Foreign exchange
Aug. 2014
Prel.
30,964.5
19,539.9
11,424.6
30,964.5
19,539.9
11,424.6
7,409.2
388.8
7,020.3
5,046.5
26.4
5,020.1
900.0
900.0
200.0
200.0
0.0
0.0
Other assets
Property and equipment
Other assets
19,478.6
19,474.0
4.6
19,474.8
19,474.0
0.8
Assets
58,752.2
55,685.7
Liabilities
58,752.2
55,685.7
1,446.2
…
…
…
…
1,446.2
…
…
252.3
…
…
…
…
252.3
…
…
14,393.5
5,392.5
9,001.0
13,795.1
4,794.1
9,001.0
120.4
120.0
0.4
120.8
120.0
0.8
42,792.0
41,517.5
20,149
20,875
Cash and cash equivalent
Somali shillings
US dollars
Claims on government
Claims on treasury
Claims on deposit money banks
Reserve money
Currency outside CBS
Currency with DMBs
Currency outside DMBs
Commercial banks' reserves with CBS
Demand deposits 2/
Time and savings deposits
Of which : commercial banks
Government deposits
Government deposits 3/
Asset recovery proceeds
Other liabilities
MTB deposits
Other
Equity and reserves
Memorandum items:
Somali shillings per US dollar, end of period
Sources: Central Bank of Somalia, and IMF staff estimates.
1/ Gold valued at end-2013 price.
2/ Deposits by Parliamentarians is estimated.
3/ Includes Treasury and Development Bank deposits.
15
Table 3. Somalia: Federal Government Budget, 2013-14
(In millions of U.S. dollars)
2013
Actual
Budget
2014
Jan.-Aug.
Proj.
Revenues and grants
Revenue
Tax revenue
Tax on income,profit and capital gains
Taxes on goods and services
Taxes on international trade and transactions
Non-tax revenue
Domestic loan and grants
Grants
Bilateral
Multilateral
110.8
69.1
65.0
…
…
…
4.1
0.0
41.7
41.7
0.0
188.5
115.3
108.0
5.1
34.0
69.0
7.3
0.0
73.2
64.0
9.2
92.2
58.6
47.5
0.6
4.3
42.7
11.0
1.8
31.9
18.1
13.8
180.6
94.5
78.0
1.2
12.8
64.0
16.5
0.0
86.0
46.4
39.6
Total expenditure
Current
Wages and salaries
Goods and services
Grants
Contingency
Repayment of arrears and advances
Capital
117.4
117.4
50.4
56.0
7.5
3.5
0.0
0.0
216.2
203.9
91.0
67.4
11.5
3.6
30.4
12.4
92.2
92.1
44.8
34.8
5.9
2.9
3.7
0.1
207.1
203.5
91.0
67.0
11.5
3.6
30.4
3.6
-6.7
-27.7
0.1
-26.5
Overall cash balance
Sources: Somali authorities, and IMF staff estimates and projections.