The opposition Coalition for Democratic Change (CDC) has issued a strong critique of the Government of Liberia's Draft FY2026 National Budget, calling it "unrealistic and hazardous" and urging the Legislature to immediately send it back to the Executive for a complete overhaul.
In a statement released Tuesday, the CDC argued that the proposed US$1.211 billion budget relies on questionable revenue assumptions that expose the country to serious fiscal risks. The agency said the document prioritizes political comfort over national development, warning that it "rescues politicians, not the people."
The CDC stated that its internal review indicates the draft budget relies heavily on volatile and non-recurring revenue streams, including the disputed US$200 million ArcelorMittal Liberia signature bonus and unspecified asset-recovery proceeds. Without these uncertain inflows, the party noted, Liberia's core domestic revenue is approximately US$940 million, only a slight increase over last year's performance. The party argued that basing major national programs on revenue that may never materialize puts Liberia on a dangerously unstable footing.
The party further questioned the US$281 million Public Sector Investment Plan, stating it relies almost entirely on the AML signature bonus, whose payment timeline remains unclear. It added that many of the PSIP projects lack basic design documents, procurement plans, and readiness assessments, raising concerns about the feasibility of the government's promised development agenda.
Follow us on WhatsApp | LinkedIn for the latest headlines
Regarding the wage bill, the CDC noted that although the draft budget lists US$329 million for compensation, the total rises to about US$352 million when a new US$26 million allocation labeled "Other Compensation" is included. The party requested an explanation about who receives this money, which institutions are covered, and why it is listed outside the regular compensation framework. Despite the wage increase, the CDC noted that frontline workers, including teachers, nurses, midwives, and security personnel, have not seen any salary improvements.
The CDC also highlighted a sharp increase in debt servicing obligations, which reached US$230 million, a US$70 million rise from the previous fiscal year. While recognizing the importance of meeting national debt commitments, the party urged the government to ensure all figures are verified liabilities aligned with the General Auditing Commission's domestic debt audit.
The statement warned that if speculative revenue streams fail to materialize, flagship development programs, such as road construction, school and hospital rehabilitation, teacher training, and national energy expansion, may stall. The party stated that donor confidence could weaken further, forcing the government to make emergency adjustments by mid-year and potentially deepening public hardship.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
To avoid what it described as a looming fiscal setback, the CDC called on the Legislature to mandate a conservative budget recast, eliminate speculative revenue projections, and reserve the AML signature bonus for supplementary budgeting pending legal clarity. It also urged publication of a full PSIP readiness report within 30 days, an independent debt-sustainability review, improved transparency in compensation reporting, and faster revenue administration reforms to strengthen long-term fiscal stability.
The CDC concluded that the FY2026 draft budget, in its current form, cannot ease the cost of living, create jobs, or restore investor confidence. The CDC Legislative Caucus said it remains open to working with the administration and development partners, but insisted the national budget must be "rebuilt on solid ground, not uncertain projections."
