The new law sets the rules for managing public finances, from budgeting to reporting and control.
Somalia has enacted Law No. 17, the Act on General Financial Management. The law establishes the rules and procedures for managing public finances across government.
The Act was enacted to modernise Somalia's public financial management and to strengthen control over public money. Its purpose is to set clear standards for budgeting, spending, accounting, and reporting so that public funds are used responsibly.
Law No. 17, the Act on General Financial Management was enacted and entered into force on December 25, 2019.
Sound public financial management is the framework within which every budget operates. This law was designed to give Somalia a modern and disciplined system for handling public money.
The law sets out the rules for preparing and executing the budget, defining the roles and responsibilities of those who manage public funds.
It establishes standards for accounting and financial reporting, so that the use of public money can be tracked and scrutinised.
The law strengthens internal controls and oversight, helping to prevent misuse and to ensure that spending follows the law and the approved budget.
By setting these standards across government, the law provides the foundation on which annual budgets and other financial laws operate, supporting consistency and discipline.
This law is important because it provides the foundation for disciplined public financial management in Somalia. Clear rules on budgeting, accounting, reporting, and control improve transparency and reduce the risk of misused funds. A strong financial management framework supports good governance and builds the confidence of citizens and development partners.
“Sound public financial management is the framework that makes every budget credible. By setting clear rules for budgeting, accounting, and control, this Act strengthens discipline across government. Consistent application of these standards, supported by capable institutions, is what will turn the law into lasting fiscal governance.”
, Aweis Osman Ahmed, M.Sc. (Master of Science in Information Systems), LL.B. (Bachelor of Laws)
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.