INCREASING GOVERNMENT REVENUE THROUGH INTEGRATED FINANCIAL MANAGEMENT SYSTEM CASE OF FEDERAL GOVERNMENT OF SOMALIA

Abdijabbar Ismail Nor

Abstract


The purpose of this study was to investigate the contribution of integrated financial management system to the government revenue (the case of federal government of Somalia). The study adopted descriptive research design and the data is collected from the federal government budgets, IMF and World Bank reports and other various research journal articles. The study found that the revenue of federal government of Somalia for the years (2013-2018) has increased due to the adoption of the SFMIS. The study revealed that the domestic revenue increased from US$ 69.2 in 2013 to US$ 84.3 in 2014 and decreased from US$ 114.3 to US$ 112.7 during 2015 and 2016 respectively due to the shortage of revenue collection. There is also an increase in domestic revenue from US$ million 112.7 to US$ million 142.6 2016 /2017 respectively. The change in amount is 29.9 In US$ million and 26.5 in Change %. In addition, the domestic revenue has increased 29.9 In US$ million between 2017 and 2018 from US$ million 142.6 to US$ million 172.5 and it is projected at US$ 189 million which means 10.09% increase in fiscal year 2019. Therefore, Somali financial management information system (SFMIS) had very positive impact on domestic revenue, which has grown from US$ 114.2 million in 2016 to US$ 172 million in 2018 and is projected at US$ 189 million in fiscal year 2019. The study also revealed the Donor fund received by the federal government of Somalia has increased (US$ 41.67, US$ 61.0, US$ 26.9, US$ 58.4, US$ 105.6 and US$124.6) from 2013- 2018 in increasing rate though it has dropped in 2015 and it was estimated US$ 154.3 in 2019 due to the effectiveness of Somali financial management information system (SFMIS) which built the confidence and relationship with Development Partners (DPs) that public fund will be managed in a transparent, equitable and accountable manner. The study concluded that the revenue of federal government of Somalia for the years (2013-2018) increased and projected to increase in fiscal year 2019 due taxes, increase in collections, license fees for telecommunications and fisheries, control in federal government expenditure through a Treasury Single Account (TSA) in the Central Bank in which all revenue collections and authorized payments are made with regular bank reconciliation.

 

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integrated financial management system, domestic revenue, total revenue

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v0i0.641

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