The Budget hearing process for the fiscal year 2025 officially began in Monrovia but that could not happen without drama at the Capitol, where a leadership impasse at the House of Representatives has extended longer than expected.
Appearing before the Majority Bloc faction of the House, Acting Minister of Finance and Development Planning (MFDP), Tanneh G. Brunson, urged the House of Representatives to expedite their review of the proposed budget.
During her appearance before the Chairman and Members of the Ways, Means, and Finance Committee of the House, Hon. Brunson emphasized the importance of the budget in advancing the nation's development.
On November 18, 2024, President Joseph Nyuma Boakai submitted the proposed National Budget for FY2025 to the 55th Legislature, as required by Section 17.1 of the Amended and Restated Public Financial Management Act of 2009.
Minister Brunson expressed her satisfaction in representing Finance Minister Hon. Augustine Kpehe Ngafuan and continuing discussions on the fiscal year 2025 proposed budget.
Hon. Brunson highlighted the government's focus on aligning the budget with the ARREST Agenda for Inclusive Development (AAID).
The Draft FY2025 budget priorities include ensuring the full payment of both domestic and external debts to maintain Liberia's financial credibility, addressing compensation and related issues with national stakeholders to improve public services, making strategic capital investments in agriculture, infrastructure, social services such as water, sanitation, healthcare, and education, efficiently allocating resources to foster economic and sustainable growth, developing human capacity, continuing and supporting projects aligned with the AAID, and initiating new ventures that align with national priorities.
The total resource envelope for FY2025 is estimated at US$851.76 million, a 15.3% increase compared to the FY2024 approved recast budget of US$738.86 million. Domestic revenue is projected to be US$759.20 million, with US$650.80 million (76.4%) coming from U.S. dollars and LRD39.9 billion (23.6%) in Liberian dollars. Key revenue sources include taxes on income and profits, international trade, goods and services, and real property, with additional resources from non-tax revenue and external contributions from entities such as the World Bank and the European Union.
On the expenditure side, the government is forecasting US$745.69 million for recurrent spending, a 10% increase from FY2024. The majority of the budget (42.3%) will be allocated to employee compensation, including pay increases for social and security sector workers, as well as additional hires in the healthcare and education sectors.
Also appearing before the Houses Committee on Ways, Means, Finance & Budget today, Deputy Commissioner General for Technical Services at the Liberia Revenue Authority (LRA), Gabriel Yeegai Montgomery, underscored that the agency's achievements in revenue mobilization are already on target.
He disclosed that despite some challenges, the LRA has collected US$619.9 million as of November 30, 2024, reaching 84% of its target. For FY2025, the LRA aims to raise US$851.8 million, marking a 15.3% increase over the current fiscal year.
To support this, the Commissioner called for an amendment to the LRA Act, allowing the agency to retain a portion of the revenue it collects, which would help enhance its capacity to innovate and digitize revenue collection processes.
Deputy LRA Commissioner General Montgomery also highlighted the passage of the Value-Added Tax (VAT) Law in April 2024, which replaces the outdated Goods and Services Tax system.
The VAT implementation is scheduled for 2026, with public engagement and capacity-building initiatives planned. Additionally, he mentioned that efforts to reform the real property tax system have made progress, with the LRA capturing more properties and partnering with the Ministry of Post and Telecommunications to establish a National Postal Addressing System.
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Further advancements, he noted, include the successful rollout of the Liberia Integrated Tax Administration System (LITAS), which allows for online tax registration, filing, and payments, and the construction of a new Customs Inspection Facility at the Freeport of Monrovia.
Deputy LRA Commissioner General Montgomery stressed the importance of collaboration across the government, private sector, and civil society to achieve the ambitious revenue targets and ensure sustainable economic growth.
The Deputy Commissioner further said that notwithstanding the challenges ahead, there is confidence that, through collective efforts, Liberia will meet its fiscal objectives and pave the way for a prosperous future.
