MOGADISHU — The Federal Parliament of Somalia has approved the 2026 national budget amounting to 1.38 billion US dollars, representing a modest increase from last year’s 1.32 billion dollars.

Of the lawmakers present, 174 voted in favour of the budget, four opposed it, while one abstained.

According to official sources, the 2026 budget will be financed through domestic revenue collection and international grants. Reports indicate that about 60 percent of Somalia’s annual budget continues to depend on external assistance.

The budget allocates approximately 700 million dollars for recurrent expenditure, covering salaries and administrative costs, while 673 million dollars is earmarked for development spending in key sectors such as infrastructure, education, and health.

Officials said the new fiscal plan places stronger emphasis on domestic resource mobilisation through taxation and aims to gradually reduce reliance on foreign aid, reinforcing Somalia’s path toward financial self-sufficiency.