Monrovia, Liberia – The much-awaited draft national budget for fiscal year 2024 has finally been sent to the Legislature by the Ministry of Finance and Development Planning.
A 10.6% increase (US$66.43 million) over the previous budget, which was returned to the executive in January of this year, brings the total amount to US$692 million.
The draft budget, which amounted to US$625.57 million and was presented by the Weah-Taylor administration that was leaving office in December 2023, was returned after the Boakai-Koung administration took office.
The Ministry’s team was led by Minister of Finance and Development Planning Boima S. Kamara last Thursday when they submitted the draft budget.
Ninety-three percent of the new draft budget, according to Anthony Myers, Deputy Minister for Fiscal Affairs, comes from domestic revenue, with the remaining six percent coming from outside sources.
Regarding spending, Deputy Finance Minister for Budget Madam Tanneh Geraldine Brunson, who remained in her position, stated that the new government had allocated more funds for operating expenses for ministries and agencies than had been previously reported.
“We’ve been able to set aside some cash to keep the institutions running. It was challenging due to the many obstacles we faced, the first of which was debt and compensation. The financial space was really constrained when you deduct that. However, we were able to allot funds so that the majority of the institutions could continue to function.”
She went on to say that of the US$51 million allotted to the Public Sector Investment Program (PSIP), US$22 million was set aside for President Joseph Boakai’s 100-day deliverables. The road fund and other ongoing, high-priority projects received the remaining funds.
The government’s employee compensation, which has usually received the highest allocation, was cut from US$305 million to US$297 million.
The proposed financial document was given to acting Speaker Thomas Fallah, the deputy speaker. In addition to thanking the Ministry for the submission, the Deputy Speaker promised legislative support in meeting Liberians’ demands.
“The Legislature recognizes that there are numerous computing interests with regard to fiscal financial instruments. The Legislature is willing to work with you. Please let the President know of our assurances. The proposed budget is what we have been waiting for. The budget has been filed, and we hope this is merely a symbolic gesture. Since this is a post-election budget, we expect that the interests of our constituents are given top priority.”
The Boakai-Koung administration’s introduction of the proposed budget for the fiscal year 2024 has sparked intense discussion.
The President requested that US$41.3 million be used to fund government operations in February in order to prevent a government shutdown, and the Legislature granted his request in the absence of a budget.
A few legislators questioned the decision made by the Legislature’s legality. The budget, according to Representative Musa Bility (District #7, Nimba County), is unlawful and does not provide sufficient justification. It also violates the Public Financial Management Law of Liberia.
It is reported that the Boakai government has made some reductions in executive expansion while also increasing top property ministries and agencies.
Reductions:
● Ministry of State: reduced from $20 million to $9 million.
● Office of the President: reduced from $4.4 million to $2.2 million.
● Vice President: Reduced from $4 million to $2 million.
● Legislature: reduced from $67 million to $38 million.
● Pro Temp’s Budget: Reduced from $4 million to $1.2 million.
● Speaker’s Budget: Reduced from $2.2 million to $1.6 million.
● Deputy Speaker’s Budget: Reduced from $1 million to a little over $515k.
Increases:
● Ministry of Education: increased from $98 million to $105 million.
● University of Liberia (UL): increased from $30 million to $32 million.
● Agriculture Sector: increased from $4 million to $5 million.
● Health Sector: increased from $64 million to $75 million.
In addition to applying cost-cutting measures in administrative and legislative activities, these revisions reflect a planned reallocation of resources towards priority areas such as education, healthcare, and agriculture.
