Liberia National Budget: Legislature Approves $738.8 Million for Fiscal Year 2024

Liberia National Budget, Legislature Approves $738.8 Million for Fiscal Year 2024.

The House of Representatives unanimously passed the Fiscal Year 2024 national budget, totaling US$738,859,827. This amount exceeds the Executive’s initial proposal by US$46,451,000. The Executive had initially suggested a budget of US$692.2 million.

This historic decision was reached with 60 members voting in favor during a roll call vote session. The House’s Committee on Ways, Means, and Finance recommended the budget’s approval following a comprehensive three-week public hearing, conducted jointly with the Senate, on the 2024 Draft National Budget.

During these hearings, there were vigorous debates on various budgetary allocations. Ministries and agencies had the opportunity to defend their proposed budgets, with thorough scrutiny applied to ensure value for money. In cases where clarity was lacking, the committee formed subcommittees to delve into program details.

Key revenue-generating entities, including State-Owned Enterprises (SOEs) such as the Liberia Telecommunication Authority, Liberia Maritime Authority, National Port Authority, and others, underwent rigorous questioning.

The Committee stressed the importance of enhancing revenue collection mechanisms, contingent upon actions by the Liberia Revenue Authority and legislative measures. They emphasized the need for efficiency and proper utilization of funds.

Of the total budget, significant allocations were made to sectors vital for national development: Public Administration received US$276,538,829, followed by Education with US$109,567,481, Security and Rule of Law with US$106,862,679, Health with US$80,501,200, and Infrastructure and Basic Services with US$47,697,550.

The approved budget comes with several fiscal measures proposed by the Committee and adopted by the Plenary:

1. The Ministry of Finance is required to present the final budget copy to the Legislature within fifteen working days of the President’s approval.
2. Budgetary appropriations for the Liberia Revenue Authority will be paid promptly, with 5% of revenue collection allocated until reaching the budgetary ceiling as per the Act establishing the Authority.
3. Social development funds, including Land Rental Fees, will be directly transferred to the escrowed accounts of affected counties in real-time.
4. Excess revenue from Real Property taxes will be shared equally between the Central Government and local administrations.
5. The Ministry of Labor and Liberia Immigration Services will retain 5% of revenue for digital enhancement of service systems.
6. The Liberia Revenue Authority will ensure timely tax collection, including SOEs’ contributions and arrears from road funds.
7. Coordination between the Liberia Revenue Authority and the Ministry of Mines and Energy for efficient mining-related tax collection.
8. Comprehensive reconciliation of all revenue transitory accounts with reported amounts reflected in the mid-year supplementary budget.
9. The Liberia Revenue Authority will have viewing rights on internal revenue generating accounts of SOEs and the authority to garnish for non-compliance.
10. The Liberia Telecommunication Authority will remit 5% of revenue to the Ministry of Post and Telecommunications.
11. Quarterly reports from spending and revenue-generating entities will be submitted to the Legislature through a specified procedure regulated by the Legislative Budget Office (LBO). A comprehensive expenditure report for FY-2023 will be presented by June 15, 2024.
12. The Ministry of Public Works will submit a list of roads to be constructed under the 2024 budget within 15 days of budget passage, with 25% of road fund revenue allocated for county-level road maintenance equipment procurement.

These measures aim to ensure transparency, accountability, and efficient utilization of public funds for national development.

These measures underscore the commitment of the government to fiscal responsibility and effective governance. By implementing these recommendations, the aim is to optimize revenue collection, streamline expenditure, and ensure that every dollar of the budget is utilized efficiently to address the needs of the people.

The passage of the budget reflects a collaborative effort between the Executive and the Legislature to prioritize key sectors such as education, healthcare, infrastructure, and security. These sectors are essential for driving economic growth, promoting social welfare, and enhancing the overall quality of life for citizens.

Moreover, the budgetary allocations demonstrate a strategic approach to address pressing national challenges. By investing in areas like education and healthcare, the government aims to empower citizens, improve human capital, and create a foundation for sustainable development.

The fiscal measures outlined in the budget also seek to enhance accountability and transparency in public financial management. By ensuring timely reporting, comprehensive audits, and effective oversight mechanisms, the government aims to build trust among citizens and foster confidence in its ability to manage public resources responsibly.

Furthermore, the budget reflects the government’s commitment to decentralization and local development. By allocating resources to county-level road maintenance and empowering local administrations through revenue sharing, the aim is to promote inclusive growth and equitable distribution of resources across the country.

Overall, the passage of the Fiscal Year 2024 national budget represents a significant milestone in the government’s efforts to advance its development agenda. By prioritizing key sectors, implementing fiscal reforms, and promoting transparency and accountability, the aim is to lay the groundwork for a prosperous and inclusive future for all Liberians.

Liberia National Budget 2024 PDF.

Download the Liberia National Budget 2024 pdf