The budget is the key instrument through which the Federal Government of Somalia (FGS) implements its policies, and the Budget Policy Framework Paper (BPFP) indicates the link between Government’s overall policies and the annual budget. The purpose of this document is to set out how the Government intends to achieve its policy objectives over short to medium terms through the annual budget. In doing so the macroeconomic framework presented in this BPFP forms the basis of resource projections and indicative expenditure allocations. It also forms the basis of the detailed forecasts of revenue and expected expenditure for fiscal year 2021.