A Decree for the purposes of establishing the Ministry of Finance and Revenue Authority of the Galmudug State

The Ministry of Finance, acting under the authority of the Galmudug State [Council of Ministers], is responsible for the overall financial management of the Galmudug State Budget and other financial affairs and for the budgets under the responsibility of the regions, which together form the Galmudug State Consolidated Budget.

2.1 The Ministry of Finance, having consulted the responsible Federal Government of Somalia and Regional spending authorities, shall make recommendations to the [Council of Ministers] with respect to the Ministry of Finance concerning:

  1. Formulation of an overall fiscal strategy for the Galmudug State Consolidated Budget, in the light of macroeconomic conditions and the effect that fiscal policy may have on economic conditions;
  2. Development of a public revenue and expenditure program for the Galmudug State Consolidated Budget and formulation of plans for the control and execution of spending under that revenue and expenditure program;
  3. Formulation of policies for the raising and collection of revenues and for the sharing of revenues raised with the Federal Government of Somalia as required;
  4. Controlling and executing the raising of revenues and spending under the Galmudug State Consolidated Budget;
  5. The establishment of appropriate internal audit arrangements for the Galmudug State Consolidated Budget;
  6. Establishing and managing a financial management information system for the control and reporting of revenues and expenditures; and,

 

2.2 The Ministry of Finance, having consulted the responsible Federal Government of Somalia and Regional spending authorities, shall make recommendations to the [Council of Ministers] with respect to the Revenue Authority concerning;

  1. Establishing and maintaining a register of taxpayers or potential taxpayers, issuing taxpayers with certificates of registration and unique taxpayer identification numbers;
  2. Establishing and maintaining a Revenue Management System to receive and record tax payments and process tax returns;
  3. Entering into agreements with local governments to carry out revenue collecting functions on their behalf.
  4. Entering into agreements with third party organizations to carry out revenue collecting and administration functions on behalf of the Revenue Authority.

2.3 The Ministry of Finance shall:

  1. Develop the Galmudug State Consolidated Budget and present this budget to the [Council of Ministers] for approval and adoption by [Decree] by the Galmudug State;
  2. Ensure that the budgets of the regions are developed, approved and executed by [the regions] in a manner consistent with assessed macroeconomic conditions and with the Galmudug State Consolidated Budget;
  3. Record and report to the [Council of Ministers] on expenditures and revenues of the Galmudug State Consolidated Budget;
  4. Arrange for the establishment of an information technology environment to support the financial management information system and functions; and,
  5. Perform any other functions necessary for the execution of the above-mentioned activities.

3.1. The Galmudug State President shall appoint the Minister of Finance who, as chief executive officer, shall be responsible for managing the Ministry of Finance and Revenue Authority and ensuring that the functions entrusted to the entities are implemented.

3.2. The Minister of Finance shall staff, organize and administer the Ministry of Finance and Revenue Authority and shall issue administrative instructions and operating guidelines relating to administration of the Galmudug State Consolidated Budget and on any matters pertaining to the functions of the Ministry of Finance and Revenue Authority.

The present [Decree] shall enter into force on xxxxxx 2015.

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