MOGADISHU (HOL) – Federal Member States and Banaadir Regional Administration will receive 40% of the $15 million budget support from the European Union, the Ministry of Finance has said.
Finance Minister Abdirahman Beyle said Saturday the FMS and Banaadir region will each receive $1 million and that two-thirds of this amount must be spent on security, infrastructure development and economic growth.
The state governments must submit their budgets for the amount which must be audited in 45 days, the Minister said noting the release of funds follows ‘fruitful talks’ in Addis Ababa.
Representatives from the Federal Government and Federal Member States met in Addis Ababa last week ahead of talks with the International Monetary Fund for review of the 4th Staff Monitored Programme.
The funds are part of the €100 million direct budget support agreement between Somali government and the European Union in October 2018.
According to the agreement, up to €92 million will go to the federal government through budget support while the remaining €8 million will support capacity building to the federal and states’ governments and oversight institutions.
The budget support runs for a period of two and half years.
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