The "power of the purse" is a legislative power. The 1986 Constitution of Liberia lists the Legislature's power, including the ability to apportion, borrow, and print money.
With about 40 days to the preparation and submission of the Fiscal Year 2025 National Budget to the Legislature for robust scrutiny, Speaker J. Fonati Koffa has cautioned government ministries and agencies to make use of this period to make their respective cases for allocations to the Ministry of Finance and Development or the Office of the President.
Speaker Koffa has advised heads of ministries and agencies against approaching him to discuss their budget needs, terming it as "not ideal."
The Speaker of the House of Representatives of the 55th Legislature also advised the heads and representatives of the eighty (80) higher education institutions regarding the budget process, that partook in the three-day National Education Stakeholder Retreat in Ganta, Nimba County from Thursday - Saturday, 5 - 7 September 2024.
"Often, representatives from various ministries and agencies approach me to discuss their budget needs. While I am open to listening, this approach is not ideal. The proper channel is through your sectors' chairs or their committee members.
The Speaker added: "The Legislature's job is to ensure that the President's agenda aligns with legislative priorities. The President may propose, for example, US$1 million for a particular sector, but if you believe US$10 million is needed, it is up to you to make that case to the Executive before the Budget reaches us. So, during the budget process, engage with the Ministry of Finance and the President's office, to ensure your numbers are included. And, of course, work closely with your committee's chair to advocate for your needs."
Meanwhile, following the Daily Observer's publication of 15 days to adjourn, the House of Representatives has voted on Thursday to meet daily, Monday - Friday.
On Monday, 9 September 2024, in the House's first-floor conference room, the Committees on Ways, Means, and Development Planning and the Public Account & Expenditure Committee, including the two subcommittees on Revenue and Appropriation began the revenue committees of the US$721 million draft Recast Budget.
Those who appeared Monday were the Ministry of Finance and Development Planning, and the Liberia Revenue Authority (LRA).
The administration of President Joseph Nyuma Boakai has taken proactive measures to address a potential budget shortfall by revising the 2024 national budget. The budget has been reduced by US$17 million, representing a 2.3% (US$721.8) cut from the initial budget of US$738.8 million agreed upon in April.
This significant reduction will hurt 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.
House Makes Changes To Budget Transmission Process
The Speaker Koffa, has introduced several new administrative measures in the Budget Transmission to the office of the President to improve the budget process.
These measures are designed to enhance transparency and accountability within the Government's budgetary process.
Among the new directives, the Speaker has mandated that all future budget transmittals to the President must be accompanied by a transmittal cover, signed by the Honorable Speaker himself.
Additionally, the office of the Chief Clerk has been ordered to implement a record-keeping system to track all documents, including information on who checks them in and out.
Further, the Speaker has called for restrictions on document retrieval by the records custodian in the Chief Clerk's office.
The Speaker has instructed the Rules, Order, and Administration Committee to provide additional facilities for the Chief Clerk's office to improve efficiency.
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These measures, according to a release by the Press & Public Affairs Department, aimed at tightening controls and preserving the integrity of the budget process.
In response to findings from the specialized investigative committee's report on the alleged alteration of the budget, the House of Representatives has also established two subcommittees under the Ways, Means, Finance, and Development Planning Committee. The Subcommittee on Revenue is chaired by Rep. P. Mike Jurry, while the Subcommittee on Expenditure is chaired by Rep. Dorwon Gleekia.
Moreover, a Budget Advisory Committee, chaired by Rep. Samuel Kogar, has been formed to oversee and manage the budget process, ensuring its alignment with the new administrative measures.
These steps represent a concerted effort by Speaker Koffa and the House of Representatives to strengthen oversight and governance in Liberia's fiscal management.
