Optimizing Public Financial Management in Somalia: Delegation, Autonomy, and Strategic Focus for Sustainable Economic Growth

Abstract:
The management of a country's finances is crucial for economic stability and growth. The Finance Minister
plays a pivotal role in shaping fiscal policies, mobilizing revenue, and ensuring effective resource
allocation. This commentary argues that the Minister should focus on key areas for optimal financial
management, including mobilizing domestic revenue, finalizing the federalization of the public financial
architecture, developing a sustainable financial strategy, and collaborating with the Central Bank on
economic development. Mobilizing domestic revenue involves enhancing tax collection and compliance.
Finalizing the federalization process ensures transparent fiscal structures and balanced state development.
Developing a sustainable financial strategy includes managing public debt and minimizing fiscal deficits.
Collaborating with the Central Bank promotes monetary policies that foster stability and economic growth.
Delegating payment processing and liquidity management tasks to specialized institutions allows the
Minister to concentrate on strategic matters. Maintaining the autonomy and independence of institutions
such as the Accountant General, Auditor General, and Central Bank is crucial for transparency and
accountability. Segregation of duties mitigates fraud and errors in financial management. Enhancing
financial governance through robust regulatory frameworks and risk management systems is essential for
stability and investor confidence. Ensuring the autonomy and independence of integrity institutions fosters
a fair and just society while preventing abuses of power. By focusing on these aspects, Somalia can achieve
economic stability and long-term growth.