The Puntland Ministry of Finance has released the state budget for the 2026 fiscal year, revealing a significant overall reduction driven largely by a decline in international development projects and the government’s public investment programme.

According to the figures presented, the 2026 budget is set at US$315.7 million, down from US$466.8 million in 2025 – a contraction of approximately 32.3 per cent.

Officials indicated that much of the shortfall is due to a noticeable decrease in external project support, which has historically underpinned key sectors such as health, education, water supply and economic infrastructure.

Analysts warn that the reduced envelope for internationally funded projects is likely to place additional pressure on basic service delivery across Puntland.

The budget announcement has also triggered renewed political debate inside the state. Several Puntland politicians have voiced concern about the broader economic situation and the current fiscal trajectory, questioning the direction in which President Said Abdullahi Deni is leading the administration.

They argue that the 2026 budget highlights mounting financial strain and underscores the need for clearer strategies on domestic revenue mobilisation, expenditure prioritisation and safeguarding essential social services.