Monrovia, Liberia – Acting Minister of Finance and Development Planning (MFDP), Tanneh G. Brunson, urged the House of Representatives to speed their consideration of the proposed budget as the fiscal year 2025 budget hearing process formally began in Monrovia.
Hon. Brunson stressed the role of the budget in furthering the growth of the country when she appeared before the Chairman and Members of the House’s Ways, Means, and Finance Committee.
In accordance with Section 17.1 of the Amended and Restated Public Financial Management Act of 2009, President Joseph Nyumah Boikai delivered the proposed National Budget for FY2025 to the 55th Legislature on November 18, 2024.
Minister Brunson said she was pleased to continue the conversation on the proposed budget for fiscal year 2025 while speaking on behalf of Finance Minister Hon. Augustine Kpehe Ngafuan.
The government’s emphasis on coordinating the budget with the ARREST Agenda for Inclusive Development (AAID) was emphasized by Hon. Brunson.
Assuring the full repayment of both domestic and foreign debts to preserve Liberia’s financial credibility, addressing compensation and related matters with national stakeholders to enhance public services, making strategic capital investments in infrastructure, agriculture, and social services like water, sanitation, healthcare, and education, effectively allocating resources to promote economic and sustainable growth, building human capacity, continuing and supporting AAID-aligned projects, and starting new projects that support national priorities are all priorities of the draft FY2025 budget.
The predicted total resource envelope for FY2025 is US$851.76 million, which represents a 15.3% increase over the authorized recast budget of US$738.86 million for FY2024. An estimated US$759.20 million will be generated domestically, of which US$650.80 million (76.4%) will come from US dollars and LRD39.9 billion (23.6%) would come from Liberian dollars. In addition to non-tax revenue and outside contributions from organizations like the World Bank and the European Union, important revenue sources include taxes on income and profits, international commerce, products and services, and real estate.
Regarding spending, the government anticipates recurring spending of US$745.69 million, a 10% increase over FY2024. The majority of the budget (42.3%) will go toward employee remuneration, which will include more employment in the healthcare and education sectors as well as pay increases for personnel in the social and security sectors.
Gabriel Yeegai Montgomery, the Liberia Revenue Authority’s (LRA) Deputy Commissioner General for Technical Services, also made an appearance before the Houses Committee on Ways, Means, Finance & Budget today. He emphasized that the LRA’s revenue mobilization accomplishments are already on track.
He revealed that as of November 30, 2024, the LRA had collected US$619.9 million, or 84% of its goal, in spite of some obstacles. The LRA wants to raise US$851.8 million in FY2025, which is a 15.3% increase over the current fiscal year.
In order to enable this, the Commissioner proposed amending the LRA Act to allow the agency to keep a percentage of the money it receives. This would increase the agency’s ability to innovate and automate revenue collection procedures.
The Value-Added Tax (VAT) Law, which replaced the antiquated Goods and Services Tax system, was passed in April 2024, as noted by Deputy LRA Commissioner General Montgomery.
Initiatives to increase capacity and involve the public are planned for 2026, when the VAT is expected to be implemented. He said that the LRA has been able to capture more properties and develop a National Postal Addressing System in collaboration with the Ministry of Post and Telecommunications, demonstrating the progress made in reforming the real property tax system.
He also mentioned the successful launch of the Liberia Integrated Tax Administration System (LITAS), which enables online tax filing, registration, and payment, as well as the building of a new Customs Inspection Facility at the Monrovia Freeport.
The government, corporate sector, and civil society must work together to meet the challenging revenue objectives and guarantee sustained economic growth, according to Deputy LRA Commissioner General Montgomery.
The Deputy Commissioner said that despite the difficulties that lie ahead, there is faith that, with teamwork, Liberia would achieve its financial goals and clear the path for a successful future.
