GAROWE (Kaab TV) — The Puntland Ministry of Finance has officially presented the proposed budget for the year 2026, highlighting significant shifts in both domestic revenue generation and external financial support.
The new budget reveals a considerable reduction in international project funding, which has traditionally played a key role in supporting public services and development programs across the region.
During the budget presentation, the Director General of the Ministry of Finance, Ahmed Jaamac Jowle, emphasized that the most notable positive development for 2026 is the growth in domestic revenue.
According to the Ministry, internal revenue collections are projected to rise by 16%, reflecting increased efficiency, improved tax administration, and stronger local economic activity.
Despite this positive trend, the overall budget for 2026 shows a major contraction. Puntland’s total proposed budget for the year stands at $315,783,344, marking a significant drop from the 2025 budget of $466,840,762. This represents an overall decline of approximately 32.3%, driven largely by reductions in external support.
A key concern outlined in the budget is the steep decline in international project funding. The Ministry indicates that allocations for externally funded projects will decrease by 32% compared to the previous year, and by 57% when compared specifically to the 2025 international project component.
This downturn is expected to have direct implications for essential public services—including healthcare, education, water projects, and infrastructure development—all sectors that rely heavily on donor-funded initiatives.
Puntland authorities attribute this decline to a broader global reduction in international aid flows. Many international organizations have reportedly scaled back, paused, or discontinued their programs in the region due to shifting priorities and decreasing donor contributions worldwide.
Despite these challenges, officials stress that strengthening domestic revenue will remain a priority in order to mitigate the impact of shrinking international support.
The Ministry of Finance has pledged to continue improving financial management, enhancing transparency, and exploring new revenue sources as the administration adjusts to the evolving fiscal landscape.