The government has gone bankrupt

[Gaandheri]

 

[warside]

When you look at the finance reports and compare it to last year, you will see a decrease in government revenue. The decrease is probably the result of donors giving less money to FGS, even when compared to the last months of Farmaajo. this is the revenue for the 1st Q of 2023 and 2022

2022	Jan: 56 mil	Feb: 77 mil	March: 37 mil	Apr: 56 mil
2023	jan: 17 mil	Feb: 25 mil	March: 37 mil	Apr: 34 mil

So in 2022 the revenue was $226 mil, and in 2023 it was $113 mil, that's 50% less of what they got last year. It seems donors are not funding FGS like before.

 

[Thegoodshepherd]

@bidenkulaha right now

 

[bidenkulaha]

@bidenkulaha right now

The government is doing fine. They have to raise taxes to fund the budget, it’s one of the stipulations in the IMF program, we have to be self funding by 2027. Each year donors will cut funding.

If MPs were unpaid you’d hear of motions to kick out the PM right now. We’re talking about hundreds of millions in wages. Gaylan has been off base the past few months, seems like after Gedo was handed over and Barawe handled he’s looking for a new avenue of opposition

 

[H.Moonie]

we need to print our money instead of debt slavery, the Jews control all central banks and loan money to government in return for interest payments. Reason for ww2 was Hitler took power from them and printed his own money for his people free from interest and he wiped out unemployment.

 

[warside]

The government is doing fine. They have to raise taxes to fund the budget, it’s one of the stipulations in the IMF program, we have to be self funding by 2027. Each year donors will cut funding.

If MPs were unpaid you’d hear of motions to kick out the PM right now. We’re talking about hundreds of millions in wages. Gaylan has been off base the past few months, seems like after Gedo was handed over and Barawe handled he’s looking for a new avenue of opposition

How do you think they will raise taxes? The only way, I think, is if they introduce mobile money tax like how many african countries were doing recently, that will probably double the revenue. They're not thinking about that though.

 

[bidenkulaha]

How do you think they will raise taxes? The only way, I think, is if they introduce mobile money tax like how many african countries were doing recently, that will probably double the revenue. They're not thinking about that though.

No idea but there’s an income tax bill IMF proposing this July. I’d have to liked to read it but they don’t publish these things. We shall see if HSM actually can increase taxes on telecoms, port and NGOs and not just the average person.

 

[bidenkulaha]

@warside IMF’s report is very clear. FGS will have to raise revenue in a post HIPC environment and budget grants will fade.

Despite this FGS is increasing expenditure. $11 million will be spent on 3,000 teachers and $21 million more on security.

They’ve just introduced turnover tax in June 2023. And below is the income tax law due this

Let’s see if the turnover tax raises much.

EU is the only mentioned donor that will increase their support to FGS to complete constitution and implement the last few NCC agreements

 

[warside]

HSM in his Eid talk mentioned that they asked a lot of countries to provide budget support but didn't succeed, and in this report the MPs got their money, but a lot of gov workers are still unpaid.

HSM talking about the need to raise funds to cover the gov costs and how they didn't find outside help. Last 2 minutes of the video.

 

[Gaandheri]

HSM in his Eid talk mentioned that they asked a lot of countries to provide budget support but didn't succeed, and in this report the MPs got their money, but a lot of gov workers are still unpaid.

HSM talking about the need to raise funds to cover the gov costs and how they didn't find outside help. Last 2 minutes of the video.

Qatar would have given him funds but they needed him to fulfill there demands, the UAE is only in charge of security they’re not giving funds for anything else.

Also I don’t get why FGS isn’t building roads from Xamar to connect to the other parts of the country so they can tax every vehicle that comes into banaadir.

 

[𐒋𐒖𐒆𐒔𐒖𐒕𐒈]

According to the Auditor General, financial reports of Jan - Dec 2021, as published in Nov. 2022:

Gov't revenue from:
a) Airport: gov't get 25% - annual revenue of 2.8m US (Assumption: Favori, which manages the airport would get 75%). This is troubling, to say the least.

b) Mogadishu port: gov't gets 62+/- % - annual revenue 25.5m US (Assumption: Al Bayrack, which manages the port gets 38+/- %) .

Total revenue: 28m US.

To put this in the right context, if there are 10,000 solders of the 'Xoogga Dalka', with each being paid 200$ salary a month, that is 24m US per annum.

In the financial world, surely it is not what one might call an ongoing concern.

-----------------------
- Borrowings & IMF: 96m US.
- There are grants from the US, and EU in the millions.
- Cash injections from Gulf states,
- Annual budgetary supplements from Turkiye.

 

[bidenkulaha]

HSM in his Eid talk mentioned that they asked a lot of countries to provide budget support but didn't succeed, and in this report the MPs got their money, but a lot of gov workers are still unpaid.

HSM talking about the need to raise funds to cover the gov costs and how they didn't find outside help. Last 2 minutes of the video.

More land sales incoming. Probably the way they’re funding the government for now before taxes are enforced. They sold the Oodweyne SNA base (8k boos for 32 million, 4k a piece).

 

[warside]

More land sales incoming. Probably the way they’re funding the government for now before taxes are enforced. They sold the Oodweyne SNA base (8k boos for 32 million, 4k a piece).

If the debt relief is completed, FGS can't get loans unless they can raise the revenues to cover the costs, if the domestic revenues don't match recurrent expenditure, nobody will give you loans.
Domestic revenues don't even cover the compensation of employees, so they need to find new sources of revenues. Let's see how they solve this.

 

[𐒋𐒖𐒆𐒔𐒖𐒕𐒈]

In finance, liquidating or auctioning tangible assets, which is tantamount to financial insolvency, is a worrying sign for struggling entities, and a signal to creditors the said entity can not meet it financial obligations. It is considered a fraudulent practice intended to hide financial standing, and gives a misleading impression of its being well, which in reality it is the opposite. Administrators of Chap. 7 entities do not allow such practices.

 

[warside]

The finance minister suspended the accountant general and DG of revenue and accused them of mishandling government funds and wreaking havoc in the system. This is a bold move since these two individuals are in the president's inner circle.

 

[Abaq]

This is what happens when HG gain influence. HSM needs to distance himself from this cartel if he wants his government to survive

 

[Abdalla]

This cabinet lasted shorter than my first marriage.

 

[AMusee]

What did anyone expect from Damuljadiid? No one should feel sorry for useless "MPs", what are they even paid to do? They voted for a well known thief.

 

[Gaandheri]

 

[Jungle]

The finance minister suspended the accountant general and DG of revenue and accused them of mishandling government funds and wreaking havoc in the system. This is a bold move since these two individuals are in the president's inner circle.

He backtracked today stating yesterdays letter should be taken as a warning and that the issues he brought up still stand lol What a disastrous move by this 'minister'.

Hassan Sheikh sidan ugu lisnay nooguma hanbeynin haddii aan SARUUR nahay. Bal eeg ilaha dakhliga ee dalka iyo Siduu Abgaal ugu koobay.

1- Wasiiru dowlaaha maaliyadda: Raaxo janaqow
2- Agaasinka maamulka iyo Maaliyadda ee wasaaradda Maaliyadda: Shire
3- Agaasinka iibka qaranka (Procurement) ee wasaaradda Maaliyadda
4- Agaasinka Canshuuraha Bariga
5- Agaasinka Customka canshuuraha ee Dekedda Muqdisho
6- Agaasinka Customka canshuuraha ee garoonka Muqdisho
7- Maamulayaasha 17da degmo ee canshuuraha degmooyinka ee waaxda canshuuraha Bariga.
8- Madaxa canshuur dhaafka ee wasaaradda Maaliyadda
9- Agaasimaha Maamulka iyo Maaliyadda ee wasaaradda Cafimaadka
10- Agaasimaha maamulka iyo Maaliyadda ee wasaaradda Amniga qaranka
11- Agaasimaha maamulka iyo maaliyada ee wasaaradda arrimahq gudaha
12- iyo qaar kale oo aan xusuusanin.
13-Agaasimaha Waaxda Golaha iyo Guddiyada
14-Agaasimaha maamulka iyo Maaliyadda Golaha Shacabka
Waad ku dari kartaa haddii aad ogtahay.

The countries finances are in safe hands people