Somaliland Cabinet Approves Record $424.5 Million Draft Budget

By Mohamed Abdi - Reporter

Somalia, 28 November 2025 – The cabinet of the self-governing state of Somaliland has approved the draft National Budget for 2026, which focuses on enhancing social services, strengthening security and stimulating economic growth.

The total estimated size of the 2026 budget stands at approximately $424,533,242 USD, equivalent to 4.58 trillion Somaliland Shilin (SL Sh).

The meeting was chaired by President Abbdirahmaan Mohamed Abdillaahi ‘Irro’ and attended by 41 ministers.

The budget, prepared by the Ministry of Finance and Economic Development, whose details were presented to the cabinet by Minister Abdilaahi Hasan Adan, has allocated the Central Government around $265,362,581, reflecting an 11 per cent increase compared to the 2025 estimates.

The document projects a 22 per cent increase in revenue when benchmarked against the 2024 budget.

The increase, according to the Ministry, is intended to cover the average 11 per cent budget decline experienced during years 2022, 2023, and 2024, with an additional 11 per cent attributed to new revenue growth.

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The key fiscal priorities for the 2026 budget include reinforcing social services, defence, strengthening security, and promoting economic growth.

The budget was approved by 40 ministers while one minister disapproved the document.

The document will be submitted to the House of Representatives for debate and final approval.

Note on Exchange Rate Used

All conversions from Somaliland Shillings (SLSH) to US Dollars (USD) in this report are based on the exchange rate on the day the news was written in Somaliland.This means: