Monrovia — The Liberian Senate has refused to concur with the House of Representatives on the passage of the recast budget. This decision came after the Senate's Ways, Means, Finance, and Budget Committee voiced concerns over the handling of a US$17.3 million deficit in the proposed budget amendments.
Senator Prince K. Moye, Chair of the Committee, stated on Sunday, September 22, 2024, that the Senate disagreed with the House's approach to reallocating substantial funds, which could potentially undermine revenue collection. The Senate argued for a more conservative approach, emphasizing the need to restore full funding to education and health sectors as originally outlined in the 2024 national budget.
The House of Representatives had proposed shifting US$18.2 million within the budget, which the Senate feared would significantly deviate from previously approved programs and procurement processes in various ministries and agencies. "Such a shift could have a profound impact on the integrity of budget allocations," Senator Moye explained.
Furthermore, Senator Moye highlighted that the recast budget aims to satisfy conditions set by the International Monetary Fund (IMF) to qualify Liberia for the External Credit Facility Program, indicating the gravity of ensuring a balanced fiscal plan.
In response to the deadlock, both legislative bodies have formed a conference committee tasked with reconciling their differences and finding a common ground on the budget's provisions.
Amidst these budgetary debates, House Speaker Fonati Koffa raised alarms about the erosion of legislative power over the national budget. During the passage of the recast budget last Friday, he criticized the current Public Financial Management (PFM) law, which he claims grants excessive control to the Minister of Finance & Development Planning, allowing for unchecked off-budget spending.
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"We have lost control of the budget process because the PFM law gave legislative authority to a non-elected officer, the Minister of Finance, to manipulate the budget at will," Cllr. Koffa passionately stated during the legislative session. He denounced the lack of adherence to legal standards in budget spending, describing such actions as illegal and unlawful.
He proposed the establishment of a budget resource committee to ensure that future budgets are managed effectively in coordination with the executive branch.
The Speaker further accused the Executive branch of violating financial laws, revealing that certain budget expenditures were made without following the legal process. "All budget spending without the requisite adherence to the laws governing all budget spending is illegal and unlawful," Koffa declared. He noted that the Legislature had no jurisdiction to pardon or waive such violations, sending a stern warning about the need for accountability.
The Speaker also highlighted the need to reform how the budget is received and transmitted to the Legislature, as well as the accountability measures imposed on the Executive during the budget's execution. "The 2025 budget cannot be spanned without adjustment and amendment to the PFM law," he stressed, underscoring the urgency of restoring the Legislature's full authority over the budget.
