Liberia's Finance and Development Planning Minister, Augustine Kpehe Ngafuan, has reiterated the government's unwavering commitment to augment the salaries of civil servants, in line with efforts to alleviate economic challenges faced by the workforce.
Speaking during a national broadcast on ELBC radio on Thursday, October 17, Ngafuan emphasized the administration's strategic goal to improve the disposable income of civil servants, many of whom have endured financial hardship under past salary schemes.
Ngafuan's announcement comes at a time when the government is preparing to unveil its national budget for the next fiscal year.
According to the minister, specific details on the salary increments and other financial reforms will be presented in the upcoming budget, which is scheduled for submission to the Legislature by the end of October.
"Our administration is prioritizing the elevation of disposable income for civil servants," Ngafuan declared. "The specifics of these efforts will be included in the next budget, which we anticipate presenting to the Legislature at the end of this month."
The finance minister stressed that this initiative is part of a broader economic strategy aimed at addressing long-standing disparities in civil servants' compensation.
Ngafuan explained that while the previous administration implemented a salary harmonization plan to streamline wages, the initiative left many workers dissatisfied due to lingering inequalities.
Ngafuan was candid in addressing the flaws of the harmonization policy, which he said resulted in unequal pay among civil servants holding equivalent positions. The discrepancies in pay have led to widespread frustration and financial strain for some government employees, particularly those earning the lowest salaries.
"Even during the harmonization process, there was victimization," Ngafuan stated. "Civil servants with the same salary level were receiving different gross pay, and there are still individuals earning as little as US$70 per month. This is a significant issue we are committed to resolving."
The minister's remarks highlight the administration's renewed focus on creating a fair and transparent pay structure for civil servants.
Ngafuan assured the public that rectifying these imbalances is a priority, as the government seeks to foster economic stability and ensure that the public sector workforce is adequately compensated for their service.
Ngafuan also shed light on the financial hurdles the current administration has inherited from its predecessors. Among the most pressing issues is the US$83 million withdrawal from the Central Bank of Liberia's reserves, which was used to cover two months of civil servant salaries in 2023. This, Ngafuan explained, has placed a significant strain on the country's finances, but the government is actively working to address these challenges.
"We are grappling with several inherited financial obligations, including unpaid ECOWAS trade levies and outstanding checks to vendors, which total millions of dollars," Ngafuan said. "Despite these challenges, we are committed to ensuring that civil servants receive fair pay and that the financial health of the country is restored."
Ngafuan underscored the importance of responsible fiscal management in navigating these challenges, pointing out that the government is making informed decisions about revenue generation and expenditure to avoid exacerbating the country's debt situation.
Despite the current fiscal constraints, Ngafuan expressed optimism about Liberia's economic trajectory. He revealed that the country's economy is projected to grow by 5% this year, with potential for even greater growth in the coming years.
"We are expecting economic growth of 5% in 2024, with the possibility of reaching 6% by 2025," Ngafuan noted. "This growth will help us manage our financial challenges and create more opportunities for Liberians."
The minister also highlighted the critical role of international partners such as the World Bank and the International Monetary Fund (IMF) in supporting Liberia's economic recovery. He explained that their assistance is essential in ensuring that the country can continue to meet its financial obligations while investing in key sectors that drive growth and development.
"Our partnerships with the World Bank and IMF are crucial to expanding our economy and managing our debt. Their support will allow us to make strategic investments that benefit the entire country," Ngafuan said.
As the government works to stabilize the economy and improve civil servants' financial well-being, Ngafuan revealed that the Ministry of Finance is in the final stages of preparing the national budget for the 2025 fiscal year.
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The budget, which is expected to be submitted by October 31, will include provisions for increasing salary allocations and addressing the unequal distribution of resources across the country.
"The 2025 budget is a critical tool for advancing Liberia's economic development," Ngafuan emphasized. "By increasing the budget allocation, we can ensure a more equitable distribution of resources and create a more sustainable financial framework for the country."
Ngafuan called on all government institutions to collaborate closely to meet the country's fiscal targets and ensure that the budget is executed effectively. He stressed that teamwork and cooperation will be key to achieving Liberia's economic goals and improving the livelihoods of its citizens.
"As we prepare for the upcoming fiscal year, it's vital that we all work together to meet our targets," Ngafuan said. "Through collaboration and sound fiscal management, we can overcome our current challenges and build a stronger, more resilient economy."
