The new law overhauls budget accounting and reporting to strengthen transparency and accountability.
Somalia has enacted Law No. 19, the Budget Accounting Act 2022. The law reforms how the government accounts for and reports on the budget.
The Act was enacted to strengthen transparency and discipline in budget reporting. Its purpose is to ensure that the government's accounts and project reporting are complete, timely, and available for scrutiny by the legislature.
Law No. 19, the Budget Accounting Act 2022 was enacted and entered into force on February 13, 2024.
Good budgeting depends not only on how money is allocated but on how clearly it is accounted for afterwards. This law was designed to improve that accountability in Somalia.
The law sets submission deadlines for the government's final accounts, requiring the Ministry of Finance to submit the year-end accounts to the legislature by a defined date each year.
It strengthens project accounting, requiring the Ministry of Finance to provide detailed information on projects funded through the central treasury.
The law mandates comprehensive project reporting, requiring a detailed report on projects across the country to be shared with the legislature for scrutiny.
It also addresses contingency fund management, directing the Ministry of Finance to allocate the contingency fund as approved by the legislature, supporting transparency in emergency spending.
This law is important because it strengthens transparency and accountability in how Somalia accounts for public spending. Clear deadlines, detailed project reporting, and legislative scrutiny make it easier to track how public money is used. Better financial reporting supports good governance and builds the confidence of citizens and partners.
“Transparency in public spending depends on timely and complete accounting. By setting clear deadlines and requiring detailed project reporting to the legislature, this Act strengthens budget accountability in Somalia. Consistent compliance with these reporting duties is what will make the improvements real.”
, Osman Osman, JD (Juris Doctor), M.Sc. (Master of Science)
Managing Partner at Mogadishu Law Office
This release is provided for general information and does not constitute legal advice. Professional legal advice should be obtained before acting on any matter discussed here.