The Central government is responsible for investing in regions with weaker fiscal growth, and to avert economic inequality of the regions of Somaliland
It is my objective in this article to highlight some of the daunting issues that are plaguing our young democracy. The issue of distribution of central revenues and expenditures is a key element that I like to discuss here. It is common in democratic countries to make a comparison of revenues collected from each province with the total amount of money spent in each. Such analysis examines whether a province is a ‘ donor ’ or a ‘ recipient ' within its own country. If a province is giving more revenue than it is getting back from the central government, it is said to be the contributor . But, if the province is contributing less revenue to the central government than it is getting back, then, it is said to be a beneficiary . Typically, central or federal governments collect more revenues from richer provinces because they have stronger economies generating higher tax revenues, and they spend more in others, because they are poorer, with weaker economic activity and lower tax...