PFM Department

The Government of Somaliland (GoSL) approved the Ministry of Finance (MoF's) Somaliland Public Financial Management (PFM) Reform Strategy (2013-2017), which was designed to improve government's capacity and systems to utilize public funds, towards meeting the National Development Plan goals and those of Vision 2030. The aim is to ensure that the Somalilnd Government spends with the highest possible efficiency, transparency and accountability in the allocation, management and use of public finances. The strategy also adopts a 'comprehensive approach' to enable different PFM sub-systems to support each other rather than operate in isolation.

• 1
  The broad objectives of the PFM is to achieve overall fiscal discipline, allocation of resources to priority needs, and efficient and effective delivery of public services. A solid and strong PFM system is a tool to minimize fiscal waste and support the effective and efficient use of taxpayers' money. Without proper management of public funds, the macro economy will be negatively affected. Weak PFM means that scarce resources are wasted through poor allocations and inefficient management. Corruption also thrives where PFM is weak and limits possibilities for growth.

• A PFM Reform Strategy has been formulated to improve the Government's capacity and systems in order to utilize public funds towards meeting the National Development Plan II (NDP II) goals, and ultimately those of Vision 2030. The Somaliland-led PFM reform strategy and action plan (Figure 1) identifies the priorities for reform, provides a structured and sequenced framework to carry out specific reform activities, guide the mobilization of resources, and improve coordination as well as sustainability of the reforms aimed at strengthening PFM systems.

Organizational Structure