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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 2, 2017, pp. 4-31

Fiscal and Monetary (Financial) Policy:

§ Enhancing transparent and accountable revenue generation, and having revenue strategy
operational;

§ Formation of national commission to harmonize tariffs and taxation in the economy.
Preparing, approving and implementing a new and modern tax law;

§ Register of business using taxpayer identification number (TIN) policies and structure
developed, and implementing revenue management system (RMS) for management of revenue
and business registration;

§ Strengthening public finance management (PFM) and the associated reforms to enable the
different level of government to be better managing financial resources in a transparent and
accountable manner, in line with the national overall priorities;

§ Enhancing the existing Somali financial management information systems (SFMIS) and
make it more inclusive, integrated and comprehensive;

§ Developing a budget strategic paper, defining fiscal targets and medium-term expenditure
ceilings. This should be done in an alignment with the Somali national development plan
(SNDP) sectoral and other priorities and objectives;

§ Strengthening the organizational and governance structure of the central bank of Somalia
(CBS), implementing new accounting and financial reporting systems and practices at the CBS,
and reinforcing the licensing, supervision, and regulation of financial institutions. This is in
addition to preparing a medium-term strategy to improve payment systems;

§ Enhancing and developing the capacity of the financial institutions and the national
professional staff.

Macroeconomic Framework, Outlook and Future Trends of the Somali Economy 2017-2019

Notwithstanding, the challenges that are facing Somalia and have, mostly, listed above, at
present time and for some years to come, should not be underestimated. One of these challenges
is to create an enabling environment for the private sector to play its envisaged role in the socio-
economic development of the nation. This including providing financial and non-financial
support mechanisms and regulatory settings that needed to assist in incubating and enhancing
growing small and medium scale enterprises (SMSE), together with enhancing the
competitiveness and investment attraction policies which are increasingly needed, in a dynamic
and highly integrated global economy. Second of these challenges selecting and managing the
process of creating prosperity and improved quality of life of the Somali population, without
creating economic and social imbalances and stresses. It is an imperative to bear in mind that
when inflation becomes entrenched phenomenon, where many bottlenecks are existed to hinder
implementation of development projects, and/or public services are lacking behind to cope with
the increasing demands, then there will be inevitable risks to sustain planned prosperity, quality

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