The House of Representatives' Committee on Ways, Means, Finance and Development Planning has flagged a revenue shortfall of nearly US$18 million in the first quarter of Fiscal Year 2025, warning that weak compliance by state-owned enterprises (SOEs) and delays in collections threaten to undermine President Joseph Boakai's flagship development agenda.
In its report to the plenary this week, the committee revealed that while the Ministry of Finance and Development Planning (MFDP) projected US$201.66 million in revenue for the period of January through March, actual collections totaled just US$183.81 million. The shortfall of US$17.85 million translates to a performance rate of 91.1 percent.
"The shortfall of US$17.85 million is concerning," said Rep. P. Mike Jury, chair of the committee. "We discovered delays in both tax and non-tax revenue collections. More troubling is the non-compliance of SOEs in meeting their financial obligations to the national budget."
The Liberia Revenue Authority (LRA), which is tasked with revenue mobilization, also reported a deficit. As of May 31, it had collected US$336 million--slightly below its projected US$343 million. The LRA attributed the gap to persistent non-compliance by SOEs and weak administrative discipline among revenue-generating agencies.
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The Bureau of State Enterprises (BSE) noted that out of 20 SOEs, only 11 submitted quarterly reports and just four did so on time. For the quarter, SOEs were projected to contribute US$12.37 million, but only US$8.49 million was realized, leaving a deficit of nearly US$3.88 million.
Mounting Pressure as Budget Demands Grow
The first-quarter shortfall is especially alarming in light of Liberia's record-breaking FY2025 National Budget, which President Boakai signed into law on January 6, 2025. The approved budget totals US$880,661,874--a 15.3 percent increase from the 2024 Recast Budget. Of this amount, recurrent expenditures amount to US$773.95 million, or nearly 88 percent of the total.
This recurrent allocation includes US$153 million for debt servicing--roughly 17.4 percent of the entire budget--along with substantial provisions for high salaries, generous benefits, and operational costs such as fuel, foreign travel, luxury vehicles, entertainment, meals, daily subsistence allowances (DSAs), and home generator supplies.
The government had projected US$833 million in core revenue and an additional US$18.8 million in contingent revenue to finance the FY2025 budget. With such a high dependency on domestic revenue to fund expansive and recurring costs, lawmakers say that any continued underperformance could jeopardize service delivery and development programs under the President's ARREST agenda.
Lawmakers Threaten Jail for SOE Heads
Frustration boiled over during the House session on Tuesday as lawmakers accused several SOEs of "deliberately sabotaging" the government's financial blueprint. Rep. Moima Briggs Mensah of Montserrado County District 6 called for the heads of non-compliant SOEs to be summoned and jailed for contempt.
"We must send for these SOE MDs or use our oversight and charge them with contempt," she said. "They are frustrating the government's revenue efforts."
Her call was backed by Rep. Musa Hassan Bility of Nimba County District 7, who said: "We should call the LRA and these entities here to give reasons why they should not be held in contempt."
Plenary later adopted a motion by Rep. Briggs Mensah mandating the committee to engage President Boakai under the doctrine of coordination, with the goal of initiating punitive measures against the defaulting SOEs.
Revenue Leakages and Legal Gaps Undermine Progress
The committee identified multiple gaps undermining the country's revenue integrity. Withholding taxes deducted from salaries are not being remitted to the LRA. The Judiciary was specifically flagged for failing to pay income taxes and for not reporting fees collected into the government's consolidated account.
In addition, there were minimal collections from real estate taxes and a lack of reporting from ministries, agencies, and hospitals regarding internally generated revenue. Rep. Jury decried these practices as bordering on criminal.
"The withholding of salaries without remitting is a crime," he said. "It is no different from theft, and this House needs to take serious action against such practices."
The report also cited flaws and ambiguities in Liberia's financial laws, including the Public Financial Management (PFM) Act and the National Road Fund (NRF) Act. The committee urged immediate amendments to close these legal loopholes.
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Path Forward: Compliance or Consequences
The committee has proposed several measures to address the growing fiscal concerns. It recommends an urgent meeting between the House leadership and President Boakai to address SOE non-compliance, including enforcement of garnishing and viewing rights granted to the LRA. Lawmakers also called for regular reconciliations between the LRA, MFDP, and SOEs to resolve legacy debts and enhance transparency.
Additionally, the committee pushed for the immediate collection of income taxes from judges and all SOE employees, as well as increased budgetary support for the LRA and other frontline revenue-generating institutions to improve performance.
Rep. Jury underscored that achieving the government's goal of raising the national budget to US$1 billion--a key milestone under the ARREST agenda--will require nothing short of full compliance, rigorous enforcement, and internal discipline.
"This is a wake-up call," he said. "We cannot afford to lose ground on our development agenda because of institutional laxity and disregard for fiscal responsibility."
