The opposition Coalition for Democratic Change (CDC) has launched a sweeping critique of the Government of Liberia's Draft FY2026 National Budget, accusing the Boakai administration of presenting a "risky and unrealistic" fiscal plan built on speculative revenues that could destabilize the country's economy.
In a sharply worded statement issued and signed on Monday, November 17, by National Chairman Atty. Janga A. Kowo, the CDC warned that the proposed US$1.211 billion budget is "dangerously inflated" and urged the Legislature to return it to the Executive for immediate revision. "This budget is a house built on sand," the CDC declared. "Passing a budget constructed on speculation is not patriotism -- it is peril. The Legislature must return the FY2026 draft budget, reframe it, and rebuild Liberia on solid ground."
The CDC argued that the draft budget's revenue framework is fragile and heavily dependent on uncertainty. According to its Budget Review Committee, nearly US$200 million of the projected amount comes from contingent sources such as the ArcelorMittal Liberia (AML) signature bonus and anticipated asset recovery proceeds. Without these speculative streams, the CDC said Liberia's Core Domestic Revenue stands at only US$940 million, an increase of US$135 million from FY2025.
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The party acknowledged that this figure may be achievable through stronger tax efforts but maintained that building a national budget on such a high volume of unconfirmed revenue exposes Liberia to severe fiscal and implementation risks. "The total budget envelope is excessively ambitious and exposes Liberia to severe fiscal and implementation risks," the CDC stated. "A budget of this magnitude cannot be anchored on hope and high-risk assumptions."
The CDC further criticized the Public Sector Investment Plan (PSIP), valued at US$281 million, noting that it is almost entirely dependent on the AML signature bonus--funds the government has not yet received.
The party said the majority of PSIP programs lack basic readiness, including engineering designs, procurement strategies, and implementation frameworks, warning that this makes the plan highly vulnerable to failure. "It is reckless to allocate more than US$200 million to unready projects," the CDC stressed, arguing that such decisions undermine value for money and jeopardize sustainable development for present and future generations.
Concerns also surrounded the government's wage bill. The CDC pointed out that although the draft budget reports a US$329 million wage bill, the real figure rises to US$352 million once a new US$26 million category labeled "Other Compensation" is added. The party expressed alarm that the wage bill continues to expand without corresponding salary increases for civil servants, particularly teachers, healthcare workers, and security personnel. "It is troubling that the wage bill is secretly expanding while civil servants are not receiving salary increases," the CDC said. "Who is benefiting from this US$26 million? The government must publish those details immediately."
The CDC also scrutinized debt servicing obligations, noting that the FY2026 draft budget allocates US$230 million for debt payments--a US$70 million increase compared to FY2025. While acknowledging the importance of honoring domestic and external debt commitments, the party insisted that all debt figures must align with the findings of the General Auditing Commission's audit of domestic debt.
The party cautioned that Liberia may face a devastating midyear budget crisis if the government's projected contingent revenues fail to materialize. It warned that such an outcome would halt major national priorities, including road construction, hospital rehabilitation, teacher training, and energy expansion.
The CDC said this scenario would likely force emergency budget recasts, weaken donor and investor confidence, and erode the credibility of Liberia's fiscal governance systems. "We fear that this unrealistic budget will trigger emergency recasts, collapse implementation, and erode investor and donor confidence," the party warned. "Liberia cannot afford a budget that sets the country up for embarrassment."
The CDC recommended several actions to prevent what it described as a looming fiscal disaster. It urged the Legislature to return the draft budget to the Executive for a more conservative recast based solely on confirmed revenues.
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The party further insisted that all speculative revenue be removed from the baseline projection and argued that the AML's US$200 million should be appropriated only through a supplementary budget after the funds are actually received and certified.
It warned that one-time windfalls, such as signature bonuses, should be reserved exclusively for capital investments, not recurrent spending, to avoid long-term fiscal instability. The party also called on the government to publish a full PSIP readiness report, commission an independent debt sustainability assessment within the next 45 days, and ensure greater transparency within its compensation structure.
In its conclusion, the CDC sharply criticized the draft budget, accusing the government of prioritizing politics over people's welfare. "The FY2026 draft budget represents a 37.5 percent increase unsupported by economic reality," the party said. "It may pay salaries, but it does not create jobs, reduce food prices, or inspire investor confidence. Liberia deserves a serious, realistic budget -- not a risky document crafted on fantasy revenues."
