The Budget Of Somaliland Fiscal Year 2006‎

A Budget is a forecast of revenue and expenditure or income and expenses for certain period .Usually budgets are one fiscal year .there are budgets for shorter periods for particular institutions or enter prizes .There are some practical considerations common to all budgets .The trends and conditions affect the budget plan and has to be measured .An examination of last years budget result is to be done to identify the trends and variations of your future expectations .the budget is often considered as a working document, it’s purpose is to make estimates of future revenues and expenditures in order to serve as a management tool .

Budgets will never be perfect and those who prepare it should do their best with the information available and honestly forward it without adding biased information and then utilize it as one measurement of success of your programmatic activities, understanding and responding to significant variances from the budget and probably this is one of the most important fiduciary responsibilities .

Here comes the role of civic societies and it is not apparent in the Democratic process. Civic societies should participate in the political, economical and social process of the country otherwise the democracy in Somaliland is null and void. The civic societies who voted the parliament to office should be upgraded and participate in putting the budget of next year in to the right track. The have watch the transparency of the budget next year so that the revenues collected from them is processed safely

Somaliland budget fiscal years 2006

In my writing today, I am not displaying here statistical information or

Data of the actual expenditure and revenue of last year’s budget for comparison, but I’m only highlighting corrective measures to be the basis for next year’s budget. In preparation for next year’s budget, we need data to be collected from the Accountant General’s office. The warrants sent to the regions has to be verified and from there we will know whether the budget reached the whole Country or only spent in the ministries and if the data shows that the budget has been mostly spent in the ministries the vouchers will be checked. The ministry of finance did not present last years budget and the Accounts prepared and certified by the Audit department. That is the actual revenue and expenditure incurred for the year 2005 this years budget was passed by the parliament without any changes adding only little adjustments .this does not mean that the budget is without errors but they have given a chance for the government to prepare a comprehensive budget next year and the society has accepted and gave the government the benefit of the doubt there were many doubts in last years budget, and we cannot afford to close our eyes from any corruptions in next years budgetary preparation.

The minister of Finance is required to prepare the financial situation of the country. This report should outline the subheads of the revenue fallen short or revenues not fully collected and why? The report should also show any foreign aid given to the country like the one for the election and how it was spent .The assets bought and inventory control by the ministry of finance should be included in his report.

Budgetary Control

The Accountant General’s office is the dept. who prepares the accounts of the country .He is responsible whether the expenditure is spent as planned and any information required can be derived from that office .This office needs to exercise the authority outlined by the regulations without higher authorities’ interference. This is the only way the expenditure can be controlled. This office also provides whether the revenue is collected as estimated and any subheads fallen short will be found in his accounts and necessary measures are taken by the ministry of finance.

The Auditor General is appointed by the president and is independent from any Authority. This office has to be given the authority and mandate entrusted to him without interference so that he can keep an eye on all accounts, then and only then the accounts of the country can be straightened.

Now this office has no effective role at all.

The Port Of Berbera

There is a separate budget attached to the central Gov’t. Budget .A law regulating the Port authority of Berbera has to be enacted by the parliament and the accounts straightened and should come under auditory control and inline with the rules and regulations of the country once and for all.

I am advising here a technical committee to be appointed well in time so that they can assist in preparing the budget. This committee will have access to the itemized budget when it is on preparatory stage and all information related is provided so that we can avoid any confusion in a later stage, then the parliament can easily approve. In this way we can only prepare a sound budget and any irregularities avoided.

Human resources

The most important element is the human resources. The success of any institution depends upon its people, if the employees are good and skilled.

They can change any poor plan to a success training is a device through which employees knowledge and performance can be enhanced. In these fast changing world technological and methodical improvements is required. When I am talking about training I mean on job training and skills of the employees in their jobs so that we can produce skilful staff. Orientation and training therefore are regarded important ingredients of staffing activities. I have to mention here that enough salaries to employees are a monetary reward or an incentive to employees. We can say it is a lubricant for work performance .Therefore the parliament and the gov’t (executive) should address this issue in next year’s budget. I’m sure there is enough money for this if corruption is controlled and stopped and necessary steps taken to collect all monies which is going to the wrong hands and pockets

Finally I recognize my observations and recommendations will not touch every aspect of the subject but I hope to provide starting points to look for practical tools and techniques for betterment. I’m sure there will be other contributions in this matter so that we can overcome the many challenges ahead.

Ibrahim Adam Ghalib

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