Liberia's financial management system is under a microscope as the government intensifies efforts to reform its Public Financial Management (PFM) sector.
At the opening of a five-day workshop on March 31, 2025, Deputy Minister for Fiscal Affairs at the Ministry of Finance and Development Planning (MFDP), Anthony Myers, underscored the urgent need for critical adjustments to ensure that Liberia's financial instruments are aligned with the evolving demands of the country's public sector.
The workshop, hosted by the PFM Reforms Coordination Unit of the MFDP, aims to provide a comprehensive "Status Update" on the activities outlined in the 2024-2027 PFM Strategy and Action Plans.
This initiative is a crucial step in Liberia's broader strategy to strengthen its financial management systems and ensure fiscal discipline as the country continues to recover and build its economy.
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Deputy Minister Myers emphasized the importance of this review, stating,
"It is imperative that we carefully examine our current financial instruments and ensure that they meet the growing needs of Liberia's financial system. We must identify necessary adjustments to improve their effectiveness and relevance. This workshop is a critical space for experts and stakeholders to engage in analytical discussions that will shape the future of our financial management."
The discussions during the workshop are expected to address key areas within the PFM system, including budget preparation, approval processes, and the execution of budgetary transfers. The review will also focus on refining the application of various revenue laws and regulations that are vital to Liberia's fiscal governance.
"This workshop is not just an update; it is an opportunity for us to delve deeply into the challenges and opportunities within our financial management systems. We must identify solutions to the challenges that hinder efficient budget execution and ensure that Liberia's financial policies align with international standards," Myers added.
The MFDP, in partnership with the International Monetary Fund (IMF), has been working on developing a comprehensive PFM Strategy & Action Plan for the period 2024-2027. This strategy, which was officially endorsed by the Cabinet on September 13, 2024, is designed to bring about significant reforms aimed at improving transparency, accountability, and the overall management of Liberia's public finances.
Myers praised the partnership with international stakeholders, saying:
"This collaboration with the IMF and other partners is essential in crafting a strategy that will not only improve Liberia's fiscal policies but also set the stage for sustainable economic growth. We are committed to ensuring that the financial management reforms are implemented efficiently and responsibly."
As the PFM Strategy progresses, various activities outlined in the plan are already underway, while others are in the planning stages and set to begin shortly. Among the key components of the reform is the review of the Budget Transfer Law and the Amended and Restated PFM Act of 2019, which are crucial to Liberia's financial transparency and accountability.
"It is crucial that we review and update these laws to ensure that our financial system is in line with best practices. The success of these reforms will depend on our ability to adapt and respond to the challenges we face," said Myers during his address to workshop participants.
The workshop has attracted senior officials from the MFDP, key government stakeholders, and international partners, all committed to advancing the PFM reforms. Together, they will engage in technical sessions focused on evaluating Liberia's financial instruments, analyzing gaps, and proposing adjustments that will help achieve the strategic goals set forth in the 2024-2027 PFM Action Plan.
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The ongoing discussions and reviews are part of Liberia's larger vision to overhaul its public financial management systems, ensuring that they can meet the demands of modern governance and financial accountability. As these reforms progress, the country is setting the foundation for more effective management of its resources, improved public sector performance, and ultimately, enhanced economic growth.
Once fully implemented, the reforms will not only optimize Liberia's financial systems but also improve overall governance, making it easier for citizens to access government services and ensuring that public funds are utilized efficiently for the benefit of all Liberians.
The discussions and technical work at the workshop are set to play a pivotal role in shaping the next phase of Liberia's financial reforms, with the Ministry of Finance and Development Planning working in close collaboration with international partners to ensure their success.
