Somalia’s cabinet has approved a $1.26 billion budget for 2027, a 9.2% decline from 2026, amid reduced financial assistance from international donors.
MOGADISHU (Somali Report) — Somalia’s cabinet on Tuesday approved a $1.26 billion national budget for 2027, a 9.2 percent decrease from the previous year, as the country faces a reduction in financial assistance from international donors.
The proposed budget totals $1,259,238,253, down from the $1,386,807,242 approved for 2026 by the federal parliament on December 23, 2025, according to figures provided in the budget announcement.
The reduction amounts to $127.6 million, highlighting mounting financial pressures on the Horn of Africa nation as international assistance declines.
The cabinet’s approval marks a step in the federal budget process, with the proposed spending plan expected to proceed through the relevant parliamentary procedures before it can take effect.
The government has not provided further details on the reasons behind the reduction in the figures released, including how the lower budget could affect spending on security, public services and development projects.
Somalia relies heavily on external assistance to finance government operations and support development priorities, making changes in donor funding an important factor in its fiscal outlook.
The latest budget reduction comes as the government continues efforts to strengthen domestic revenue collection and reduce its dependence on foreign funding. However, a smaller overall budget could increase pressure on authorities to prioritise spending and mobilise additional resources.
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The figures released did not specify how much of the 2027 budget would be financed through domestic revenue, grants or other sources, nor did they provide a breakdown of allocations to individual ministries and sectors.
Further details on the proposed budget would be needed to determine which government programmes could face spending constraints and whether the decline reflects lower projected external grants, changes in domestic revenue estimates or adjustments to planned expenditure.
Somalia has been working to rebuild state institutions and expand public services after decades of conflict, while continuing security operations against Al-Shabaab, the Al-Qaeda-linked militant group that has waged an insurgency against the federal government for more than a decade.
The group remains a major security challenge, while the government also faces demands to invest in infrastructure, education, healthcare and economic development.
A decline in donor assistance could complicate efforts to meet those competing priorities, particularly if domestic revenue growth fails to compensate for the shortfall.
The 2027 budget figures represent a decrease in the government's planned spending envelope, although the overall impact will depend on the final allocations, the sources of financing and the implementation of the approved budget.
The government has yet to release a detailed breakdown of the proposed 2027 spending plan in the information provided.
About the Author
Ahmed Omar is a senior journalist for Somali Report, based in Mogadishu. He has two decades of experience reporting on Somalia for international and local media. He covers politics, security, governance, business, trade, economic developments and regional affairs.
