Liberia News: Govt. Twists Budget

Liberia-The Liberian government, in the recent recast budget sent to the National Legislature, has sliced significant appropriations, maintaining and making reallocations for line ministries and agencies, without giving reasons for these financial drawdowns.

But financial experts have inferred the reallocations and adjustments may have stemmed from poor revenue inflow outlook or sedentary budgetary support from partners who have over the years boosted Liberia’s budgetary strength to address critical development needs.

The recast draft National Budget stands at US$$721.5 million, from US$738.9 million, which is a reflection of the government’s desire to balance between service provisions and public investments.

The slight drawdowns in the recast budget are a critical twist in various sectors allocations that place priority to public administration, security and debt management.

For public administration which focuses on smooth operation of key government functions including payment of civil servants, the initial $256.7 million is upped by $266.6 million.

The government made improvement in security and rule of law sector with a new allocation of $107.7 million – that includes an additional $2 million under revenue-enhanced measures

In the recast budget, the government sliced health sector allocation from $80.1 million to $78.97 million.

Education also saw a reduction from $111.3 million to $108.4 million, a decrease that could have serious implications for educational institutions across the country.

The most seriously substantial reduction is the Public Sector Investment Plan (PSIP), from $95.1 million to $62.1 million.

According to the Liberian Investigator, the $33 million cut reflects the government’s decision to prioritize short-term fiscal relief over long-term economic growth and development.

The allocation for domestic liabilities jumped from $26.4 million to $45 million, while the Ministry of Youth and Sports is also impacted by reduction from $7 million to $5.5 million.

Also, funding for social development services is sliced from $26.3 million to $14.4 million—a more than 45% reduction.