federal government of somalia - ministry of finance...system (sfmis) in 2014 by the fgs in order to...

Government Quarterly Financial Report

Quarter Two 2020

Federal Government of Somalia

Office of the Accountant General

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Introduction and Background

The Office of the Accountant General (OAG) is responsible for the preparation of accounts and financial

reports to provide such information as may be necessary to show the results of the management of the

national budget that include a comparison between the estimated and actual revenue and expenditure and

any other information prescribed in the Financial and Accounting Procedures of the State of 1961 (as

amended in 1971).

In this summary report, the Office of the Accountant General (OAG) accordingly presents the fiscal

performance of the Federal Government of Somalia for the financial year relating to the period at the end

of the quarter two of the Fiscal Year (FY) 2020. Areas included in the report are;

• Dashboards for a commentary on FGS fiscal performance for the period;

• Fiscal Summary report of FGS revenue and expenditure;

• Revenue performance for the details of the revenues collected by the revenue collection authorities;

The table below shows main sources of revenues and types of expenditure of the Federal Government of

Somalia in line with the Budget Appropriation Act of 2020

Table: FGS sources of revenue and types of expenditure.

Sources of Revenue • Domestic Revenue in the form of Taxes and Non – tax revenue

• Grants (External Donor Funds)

Types of Expenditure • Compensation to employees (salary and allowances)

• Use of Goods and Services

• Grants (Transfers to Federal Member States)

• Capital Expenditure and

• Other expenses (Contingency)

It is important to note that following the implementation of the Somali Financial Management Information

System (SFMIS) in 2014 by the FGS in order to enhance accountability and transparency in the management

of the public money and to increase the level of accuracy of financial data and information, all financial

reports and data included in this report are extracted directly from the SFMIS.

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Comparison between FGSs’ main revenue source Categories.

Figure COMPARISON OF DOMESTIC REVENUE AND EXTERNAL GRANTS QUATER TWo 2020

• Domestic revenue accounted for 32% of the total revenue collected by the Federal Government of Somalia. this is mainly due to the lower Domestic Cause by Coronavirus,

• While the external grants accounted for the remaining portion of 68%.

Series1, Domestic revene , 32%Series1, Exterenal

Grant , 68%

COMPRISON OF TOTAL DOMESTIC REVENUE AND EXTERNAL GRANTS

Domestic revene Exterenal Grant

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Figure 1 simple COMPARISON OF TAX REVENUE, NON-TAX REVENUE AND EXTERNAL GRANTS QUARTER TWO 2020

• Tax revenue amounted 26% out of the total government revenue; non-tax revenue with 10 % followed by external grants which is multilateral amounted 5% and bilateral grants received by the Government during the same period accounted for 63%

Taxi Revene 22%

Non Taxi Revene 10%

Bailateral Grant 5%

Multilateral Grants63%

Comprison of source Revenue FGS Qauter Two 2020

Taxi Revene Non Taxi Revene Bailateral Grant Multilateral Grants

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Comparison between FGSs’ Categories of Expenditure

Figure 2 Comparison between FGSs” Categories Expenditure Quarter Two 2020

• From the Budget Appropriations Act of 2020, FGS expenditure is classified under the following categories;

o Compensation of Employees: which is payments of salary and allowances for the benefit of the civil servants. This category remains the highest with 50% of the total expenditure as per the chart above.

o Use of Goods and Service: this category turned out as the second most incurred expenditure category after employees’ cost and accounted for 14% of the total expenditure.

o Grants (Transfers to the Federal Member States) (TFMSs): as the name suggests this category is used by the FGS to make Government budgetary support to the Federal Member States; Puntland State, Jubbaland state, Southwest state, Galmudug State, Hirshabelle State and Benadir region. This category represented the third highest percentage of 20% of the total Quarter three expenditure.

o Capital Expenditure: is used to fund FGSs’ National Development Plans and as shown in the chart above, only 3% of the total expenditure was incurred during the period.

o Other expenses (Contingency expenditure): during this quarter there were no expenditure incurred out of the contingency account as the 0% of the above chart shows.

o Interest and other charge during this quarter there were expenditure incurred out of the interest account as the 3% of the above chart shows

Compensation of employees

50%

Use of goods and

services14%

Consumption of fixed capital

3%

Interest and other

charges3%

Subsidies0%

Grants20%

Social benefits

10%

Other expenses0%

Comparison Of Expenditure quater2

Compensation of employees Use of goods and services Consumption of fixed capital

Interest and other charges Subsidies Grants

Social benefits Other expenses

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Following are statements extracted from the Somali Financial

Information Management System [SFMIS]


Summary of Government Revenue and Expenditure as of June, 2020

For the Month of June,

2020

Description Budget / Estimate YTD Actuals Variance

Total Domestic Revenue 234,400,000 13,304,691 104,743,323 129,656,677

Tax revenue 155,500,000 10,151,563 67,032,986 88,467,014

Non-tax revenue 78,900,000 3,153,129 37,710,337 41,189,663

Total External Grants 231,750,902 63,317,799 168,325,059 63,425,844

Current - Grants Bailateral 30,000,000 7,500,000 22,500,000

Capital

Current - Grants - Multilateral 201,750,902 60,497,963 158,005,222 43,745,680

Current (Multi-lateral) 2,819,837 2,819,837 -2,819,837

Total Revenue and Grants 76,622,491 273,068,382 193,082,521466,150,902

Total Recurrent Expenditure 438,771,746 35,481,042 205,965,563 232,806,183

Compensation of employees 227,445,325 17,242,312 106,546,301 120,899,024

Use of goods and services 125,444,657 9,019,789 29,950,519 95,494,137

Interest and other charges 7,380,019 1,111,623 7,050,225 329,794

Subsidies 7,291,661 193,093 193,093 7,098,568

Grants 45,702,664 7,914,225 41,874,590 3,828,074

Social benefits 25,000,000 20,350,834 4,649,166

Other expenses 507,420 507,420

Total Capital Expenditure 37,379,159 1,219,194 7,451,764 29,927,396

Consumption of fixed capital 37,379,159 1,219,194 7,451,764 29,927,396

Total Expenditure 36,700,236 213,417,326 262,733,579476,150,905

Financing Gap / Surplus (-) or (+) -10,000,003 39,922,255 59,651,055 -69,651,058

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Revenue performance comprehensive

YTD Actuals

8,300,000

3,800,000

4,500,000

2,500,000

2,500,000

500,000

500,000

27,100,000

800,000

5,900,000

1,300,000

16,000,000

2,100,000

1,000,000


Revenue Performance Report from April, 2020 to June, 2020

Code Description Original

Estimate

Virements Revised

Estimate

Variance

1111 Payable by individuals 8,300,000 3,123,026 5,176,974

111101 Wages and salaries (Public Sector Payees) 3,800,000 1,515,306 2,284,694

111102 Wages and salaries (Private Sector Employees) 4,500,000 1,603,356 2,896,644

111103 Profit tax from non-corp. bus. (self-empl.

income)

4,364 -4,364

1112 Payable by corporations 2,500,000 1,085,952 1,414,048

112101 Corporate profit tax 2,500,000 1,085,952 1,414,048

1131 Other taxes - on Income 500,000 121,163 378,837

113101 Rental income 500,000 121,163 378,837

1141 General taxes on goods and services 27,100,000 4,950,183 22,149,817

114101 Sales taxes - Hotels 800,000 213,271 586,729

114102 Sales taxes - Telecommunications 5,900,000 252,470 5,647,530

114103 Sales taxes - Electricity Companies 1,300,000 1,300,000

114104 Sales taxes - on imported goods 16,000,000 4,459,434 11,540,566

114105 Sales taxes - Airline tickets 2,100,000 25,008 2,074,992

114106 Sales taxes - Others (TV Cable Providers) 1,000,000 1,000,000

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92,000,000

92,000,000

14,000,000

14,000,000

1151 Customs and other import duty 92,000,000 19,629,224 72,370,776

115100 Customs and other Import duties 92,000,000 92,000,000

115101 Custom taxes on petroleum 4,625,045 -4,625,045

115102 Custom taxes on export goods 134,388 -134,388

115103 Road vehicles (salon cars) 1,237,079 -1,237,079

115104 Import tax on sugar 1,873,006 -1,873,006

115105 Crude vegitable materials 2,337 -2,337

115106 Import tax on tobacco and matches 232,560 -232,560

115108 Flour 369,085 -369,085

115109 Construction of electronic materials 920,121 -920,121

115110 Cereal products, spagheti etc 135 -135

115111 Vegitable oils 793,351 -793,351

115112 Soap and cleaning products 427,343 -427,343

115113 Apparel, clothing, textile yarn 1,047,858 -1,047,858

115114 Footwear

115115 Tea 51,610 -51,610

115116 Vegitables and fruits 39,824 -39,824

115117 Plastic materials 66,091 -66,091

115118 Rubber tyers 28,249 -28,249

115119 Poultry and edible offals 90,797 -90,797

115120 Building materials 799,405 -799,405

115121 Electronic materials 1,158,425 -1,158,425

115122 Food items /rice, spaghetti. etc 1,127,746 -1,127,746

115123 Household materials 662,401 -662,401

115124 Cosmetics & perfume 58,326 -58,326

115125 Others 2,812,778 -2,812,778

115126 Gold

115127 Shoes 267,588 -267,588

115128 Beverarges 803,676 -803,676

1156 Other taxes on int. trade and transactions 14,000,000 14,000,000

115601 Import tax on Khat 14,000,000 14,000,000

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11,100,000

2,000,000

1,900,000

3,700,000

3,500,000

30,000,000

30,000,000

201,750,902

4,833,325

4,459,835

10,450,960

1,241,700

5,655,700

1,970,646

242,650

5,702,486

4,169,492

1,930,507

1161 Payable solely by business 11,100,000 2,302,848 8,797,152

116101 Stamp duties of invoices and contaracts

(notary)

2,000,000 260,747 1,739,253

116102 Road tax 1,900,000 362,370 1,537,630

116103 Other stamp duty 3,700,000 815,757 2,884,243

116109 stamp duty on cutoms 3,500,000 863,973 2,636,027

1311 Current - Grants Bailateral 30,000,000 7,500,000 22,500,000

131101 Current (Turkey) 30,000,000 7,500,000 22,500,000

1312 Capital

131201 Capital (Turkey)

131202 Capital (Saudi Arabia)

1321 Current - Grants - Multilateral 201,750,902 92,863,870 108,887,032

132101 Current - World Bank - Multi-partner Trust

Fund (SFF)

4,833,325 4,833,325

132102 Current - World Bank - Capacity Injection

Project

4,459,835 368,290 4,091,545

132103 Current - World Bank - Public Financial

management

10,450,960 739,391 9,711,569

132104 Current - World Bank - ICT Sector Support 1,241,700 40,117 1,201,583

132105 Current - World Bank - SCORE 5,655,700 411,700 5,244,000

132106 Current - World Bank - RCRF - Budget

support

1,970,646 3,870,158 -1,899,512

132107 Current - World Bank - SOPTAP (Petroleum) 242,650 39,985 202,665

132108 Current - African Development Bank -

Economic and Financial Governence

5,702,486 267,906 5,434,580

132110 Current - Urban Investment Planning Project

(SUIIP)

4,169,492 844,354 3,325,138

132111 Current - United Nations - District

Rehabilitation Project (S2S)

1,930,507 1,930,507

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33,000,000

4,838,008

2,179,800

30,878,000

46,500,000

693,582

5,911,908

3,030,939

2,212,356

20,548,000

541,809

10,759,200

132112 Current - European Union - Police

132113 Current - European Union - Budget support 33,000,000 7,664,241 25,335,759

132114 Global Partnership For Education 4,838,008 998,516 3,839,492

132115 Current - World Bank - SEAP 2,179,800 249,719 1,930,081

132116 Current Somalia Shock-Responsive Social

Safety Net Project Project

30,878,000 21,168,446 9,709,554

132117 WB - Recurrent Costs and Reform Financing

Project

46,500,000 46,500,000

132118 WB Surge Support 184,702 -184,702

132119 WB - Somalia Petroleum Sector Technical

Assistance Project

132120 Current- African Development Bank - Energy

Sector Project

693,582 693,582

132121 Current- World Bank - "BIYOOLE”

PROJECT

5,911,908 180,536 5,731,372

132122 Current - African Development Bank - Road

Infurasturecture Program

3,030,939 3,030,939

132123 Current - African Development Bank -

SIEMID

2,212,356 2,212,356

132124 Current- World Bank - SCALED-UP

PROJECT

20,548,000 464,392 20,083,608

132125 Current - WB- Somali Urban Investment

Planning Project - Additional Financing

541,809 541,809

132126 Current- World Bank - Somalia Urban

Resilience Project PH2

10,759,200 10,759,200

132127 Current- World Bank - DPO 55,271,419 -55,271,419

132128 Current - IGAD 100,000 -100,000

1331 Current (Multi-lateral) -2,819,837 2,819,837

133101 Inter-entity transfers:Salaries -2,819,837 2,819,837

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74,300,000

3,000,000

5,000,000

5,000,000

1,000,000

1,200,000

27,000,000

2,400,000

2,100,000

12,600,000

15,000,000

4,600,000

4,600,000

466,150,902

1421 Administrative fees and charges 74,300,000 13,258,676 61,041,324

142201 Administrative charges 3,000,000 352,766 2,647,235

142202 Visa charges 5,000,000 516,825 4,483,175

142203 Passports fees 5,000,000 5,000,000

142204 Licence fees - Commerce and industry 1,000,000 231,789 768,211

142205 Work permits and other fees 1,200,000 140,086 1,059,914

142206 Harbour fees - Albayrak 27,000,000 6,354,368 20,645,632

142207 Airport fees - Favori 2,400,000 2,400,000

142208 Fisheries licence fees 2,100,000 2,100,000

142210 Telecommunication Spectrum fees 12,600,000 1,703,167 10,896,833

142211 Overflight fees 15,000,000 3,959,675 11,040,325

1425 Harbour Fees 4,600,000 1,034,454 3,565,546

142502 Customs Harbour fees 4,600,000 1,034,454 3,565,546

Grand Total 466,150,902 143,049,560 323,101,342

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YTD Actuals

21 227,445,325 17,242,312 106,546,301

2111 139,565,127 11,340,072 68,392,626

2112 73,639,304 4,875,496 32,782,861

2131 14,191,686 1,026,744 5,370,814

2132 49,208

22 125,444,657 9,019,789 29,950,519

2211 6,270,871 447,254 1,826,817

2212 1,974,163 130,157 488,985

2213 6,751,960 562,109 2,036,530

2214 2,935,565 244,111 819,001

2215 4,510,301 295,574 1,151,326

2216 10,641,255 301,415 1,905,560

2221 2,572,300 132,950 293,500

2222 7,364,710 36,104 191,861

2231 35,061,106 703,579 4,049,467

2232 1,061,664 7,151 7,281

2241 4,693,553 1,761,706 3,751,185

2243 99,884

2251 1,225,000 66,890 374,997

2252 1,040,000

2253 696,000 42,000 354,054

2255 3,958,639 146,037 613,516

2256 8,304,996 885,976 3,201,020

2261 26,282,689 3,256,776 8,885,420


Expenditures Report as of June, 2020

Description Budget / Estimate For the Month of June,

2020

Variance

Compensation of employees 47%

Wages and salaries in cash 49%

Allowances 45%

Other employee costs 38%

Arrears on Allowances 0%

Use of goods and services 24%

Utilities 29%

Rent 25%

Fuel and lubricants 30%

Repairs and maintenance 28%

Office materials and other consumables 26%

Travel expenses 18%

Education expenses 11%

Training expenses 3%

Consulting and professional fees 12%

Audit fees 1%

Bank commissions 80%

Insurance charges/premium 0%

Health and hygiene 31%

Agricultural supplies and inputs 0%

Military materials, supplies and services 51%

Other specialized materials and services 15%

Special operational services 39%

Other General Expenses 34%

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23 37,379,159 1,219,194 7,451,764

2311 2,139,110 173,388 546,050

2312 863,058 2,629 94,273

2313 8,659,746 113,568 1,283,197

2314 25,717,245 929,609 5,528,244

24 7,380,019 1,111,623 7,050,225

2411 7,380,019 1,111,623 7,050,225

25 7,291,661 193,093 193,093

2521 7,291,661 193,093 193,093

26 45,702,664 7,914,225 41,874,590

2611

2621 645,300 320,300 619,908

2631 45,057,364 4,774,089 31,379,902

2670 2,819,837 9,874,779

27 25,000,000 20,350,834

2711 25,000,000 20,350,834

28 507,420

2821 507,420

31 -1,102,862 2,999,903

3151 -1,102,862 2,999,903

476,150,905 35,597,374 216,417,229

Consumption of fixed capital 20%

Buildings and structures 26%

Machinery, furniture and equipment 11%

Information and Communication Technology

(ICT)

15%

Other fixed assets 21%

Interest and other charges 96%

Loan Interest and Commitment Charges 96%

Subsidies 3%

To non-financial private enterprises 3%

Grants 92%

Current

Current 96%

Transfers to Sub National 70%

Transfers by other general government units

Social benefits 81%

Social Security benefits 81%

Other expenses 0%

Contigency Items - Operating & Capital

Expenses

0%

Page 1 of 1

Assets

Advances

Grand Total 45%

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