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.

 

Article visualizations:

Hit counter

DOI

Keywords


integrated financial management system, domestic revenue, total revenue

Full Text:

PDF

References


Accountants, C. O. (2013). Improving Financial Management in the Public Sector.

Aminatu. M. (2012). The Impact of Integrated Financial Management System on Economic Development: The Case of Ghana. Review of International Studies, Unpublished Thesis, M. A. Graduate School of International Studies, Korea University.

Federal Republic of Somalia for the Recurrent Cost and Reform Financing Project August, 2018

Hendriks, C. (2012). Integrated Financial Management Information Systems: Guidelines for Effective implementation by the public sector of South Africa. AOSIS Open Journals, 4(3), 443-778

IMF Country Report No. 18/212, July 2018.

IMF (International Money Fund). 2017. 2016 IMF Somalia Country Report 17/61. Washington, DC.

Implementation Status Reports (Dec. 2014 through Mar. 2016).

Kaindi (2012). Established that IFMIS has a significant impact on internal control systems and financial performance of public institutions.

Cherono, S. C. (2016). The effects of integrated financial management information systems, on accounting operations of government agencies in Kenya. Nairobi.

Muigai, E. K. (2012). The effect of integrated financial management information systems on the financial management of public sector in Kenya of public sector in Kenya. Nairobi.

Shah, A. (Ed.). (2006). Budgeting and budgetary institutions. World Bank Publications.

USAID (2008). Integrated Financial Management Information Systems: A practical guide.

W. B. Group, (2018). Somalia Economic Update.




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

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 Abdijabbar Ismail Nor

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing Group. All rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.