The Ministry of Finance has asked government agencies in Somaliland to reduce their spending.
This follows reports that the government has introduced several austerity measures designed to mitigate the effects of COVID-19 in the country.
In a statement released yesterday, the finance ministry said all government agencies have to cut down on their operational and administrative costs forthwith.
Heads of agencies have been given directives on the percentages by which they should cut expenses.
Additionally, the government has announced a cessation of all new projects for this year.
It indicated that it would not be financing new projects or allowing its agencies to engage in capital spending this year.
Dr. Sa’ad Ali Shire sent a circular to all departmental heads detailing the steps to be taken to slash spending until the government’s financial situation improves.
With the outbreak of COVID-19, the government of Somaliland is expected to have a difficult time generating revenues.