The administration of President Joseph Nyuma Boakai has taken proactive measures to address a potential budget shortfall by revising the 2024 national budget. The spending has been reduced by US$17 million, representing a 2.3% cut from the initial budget of US$738.8 million agreed upon in April.
This significant reduction will have a negative impact on public spending for specific infrastructure projects, goods, and services. The decision to reshape the budget downward, an embarrassing development, comes after the Liberia Revenue Authority reported strong revenue performance to lawmakers recently.
Acting Finance Minister Anthony Myers stated when he presented the draft recast budget to Lawmakers on Capitol Hill over the weekend that the budget adjustment was based on the budget's performance in the first six months of the year, emphasizing the need to prioritize critical expenditures while avoiding budget shortfalls.
The draft recast budget was presented to the Speaker Cllr. J. Fonati Koffa, of the House of Representatives and to the Senate through the Office of the Vice President on Friday, August 16, 2024.
Acting Finance Minister Anthony Myers told House Speaker Fonati Koffa Friday the recast budget was necessitated by the budget's performance over the first six months of the year, addressing revenue outcomes and prioritizing critical expenditures for the country.
"We thought we needed to first rebalance the budget in order to avoid budget shortfalls and secondly to protect critical expenditure lines that are key national priorities," Myers said. "It is my distinguished honor to present the draft recast budget for FY 2024. This recast is informed by the budget's performance over the first six months of the year, addressing revenue outcomes and prioritizing critical expenditures for the country."
"We thought we needed to first rebalance the budget in order to avoid budget shortfalls and secondly to protect critical expenditure lines that are key national priorities," he added.
Upon receiving the draft budget, Speaker Koffa acknowledged the submission and urged the Finance Ministry to submit all supporting documents for the Recast Budget to aid the Ways, Means and Finance Committee during the scrutiny process.
The Speaker of the 55th Legislature, in order to improve the budget process, has announced additional measures aimed at investigating allegation of budget alteration and has since named a special investigative committee chaired by Bong County Electoral District 4 Representative Robert F. Womba and co-Chair by Montserrado County Electoral District 7 Representative Emmanuel Dahn. The members include; Hon. Thomas Romeo Quioh of Sinoe County District #2, Hon. Sekou Kanneh, and Hon. Sumo Mulbah of Montserrado County Districts # 2 and 3 respectively.
Speaker Koffa said the Legislature remains committed to the fight against corruption and will promote the high standards of transparency and accountability in Government.
According to Speaker Koffa, the Specialized Committee aims to address and resolve any concerns related to the recently passed budget of tampering.
Speaker Koffa also stressed the importance of additional documentation. "We expect to receive various reports, including outturns, off-budget expenditures, and related processes. All necessary expenditure lines, revenue forecasts, and other pertinent reports should be presented to the Ways and Means Committee."
He advised the senior management team at the Ministry of Finance and Development Planning that they should send all related documents to the legislature promptly to facilitate a thorough review and ensure the completion of the process.
Meanwhile, a letter from President Boakai to Speaker Koffa says the proposed resource envelope for the FY2024 recast budget is projected at 738.8 million comprising a risk-adjusted portfolio of US$721.5 million plus US$17.3 to be raised through the following revenue mobilization measures: increment in GST on a selected set of goods and services that have little or no significant social impacts, increase in non-concessional mineral royalties, an executive order for surcharge on imports that compete with domestic manufacturing outputs and sale of debt instruments.
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The President's communication further states that the proposed expenditure for FY2024 recast budget is shared between US$672.3 million or 91 percent for recurrent expenditure and US$66.6 million or 9 percent for Public Sector Investment Plan (PSIP). Among the key recurrent expenditures are debt services to commercial banks arising from construction projects and interests on debt instruments, and to multilateral institutions in order to unlock opportunities for financing medium-term development priorities. Other recurrent expenditures are compensation of employees, operational goods and services for Government entities and subsidies, grants and transfers to governmental and non-governmental institutions in the Health, education and social service sectors.
The Legislature is expected to return to work hopefully Monday, August 26, when all necessary documents relating to the Legislature's recall are legalized evident with a Proclamation of Extension.
