Capitol Hill, Monrovia – The House of Representatives on Tuesday passed the draft National Budget for 2022 in the tone of US$ US$786,587,340, a US$1 million increase of the version submitted by the Executive.
The House took the decision based on the recommendations of its Committee on Ways, Means, Finance contained in a report submitted and read in plenary on Tuesday.
In the report, the Committee, through its Chairman, Rep. Thomas P. Fallah (District #5, Montserrado County) said, as per the mandate given to it by the Plenary, it conducted vigorous and thorough scrutiny of the draft budget for fiscal year 2022 beginning with the revenue envelope.
Several major revenue generating entities and agencies including State Owned enterprises (SOEs) such as the Liberia Telecommunications authority (LTA), Liberia Maritime Authority (LMA), National Port Authority and the Liberia Petroleum Refining Company (LPRC) attended the hearings.
Following the consultations, Rep. Fallah said the Committee concluded a revenue envelop of US$786,587,340, with the additional US$1 million projected as revenue to be generated from COVID-19 testing.
The Executive has earlier submitted the draft budget at US$785,587,340.
Excerpt of the Committee’s report: “Honorable Speaker, Deputy Speaker, distinguished colleagues, we once again crave your indulgence to approve the fiscal year 2022 National Budget in the amount of US$786,587,340 or the Liberian Dollars equivalent of L$110,122,227,600 with compensation at US$491,801,220 and no more.”
Economic Classification
In the draft budget as approved, the amount of US$291,811,220 is appropriated for compensation of Employees; Use of Goods and Services: US$130,801,454; Subsidy gets US$4,645,761; Grant – US$74,014,920, Social Benefit: US$13,804,131; Non-financial asset: 153,885,354, Domestic Liability: US$79,479,179; Foreign Liability US$36,20,861.
Sector Summary
Public Administration: US$288,608,590; Municipal government: US$31,504,594; Transparency and Accountability: US449,642,578; Security and Rule of Law: US$102,418,995; Health: US$84,143,300; Social Development Services: US$28,341,835; Education: US$88,96,824; Energy and Environment: US$34,57,233; Agriculture: US$10,164,912; Infrastructure and Basic Services: US$59,470,278 while Industry and Commerce US$10,138,271.
Fiscal Measures
In its recommendations as passed by the House, the Committee called for budgetary appropriation for the Liberia Revenue Authority shall be paid immediately upon collection of revenue by the budgetary ratio 5% of revenue collection until its budgetary ceiling is realized in accordance with the act creating the Liberia Revenue Authority.
The Committee called for all social development fund including the Land Rental fees to be transferred directly to the affected counties’ escrowed accounts.
In addition, it called for a revenue sharing of 70%-30% between the Central Government and the counties (cities, township, borough) for all excess budgetary revenue collected from real property taxes.
The Ministry of Post and Telecommunications shall retain 60% of revenue generated from mail conveyance to cover cost of conveyance in order to ensure efficiency in their services, the committee recommended.
Last month, following a month-long delay in the submission of the budget, President George Weah submitted the draft national budget to the Legislature. In a communication accompanying the draft budget, President Weah called on the Legislature to pass it in time owing to the ‘significant’ programs earmarked to be funded during the impending fiscal year.
He for the budget be accorded special and timely consideration because of the number of significant undertakings to be funded during the ensuing fiscal year. He named the conduct of the National population and Housing Census, fulfilling GOL commitment to strengthening monetary policy through replacement of legacy banknotes and preparatory activities for the 2023 Elections as some of the time-bound projects featured under the public sector investment plan segment.”
Submitting the budget on behalf of the President to House Speaker Dr. Bhofal Chambers at the Capitol on Thursday, the Minister of Finance and Development Planning, Samuel D. Tweah, Jr. said it is inarguably the highest budget envelope in post war Liberia.
Minister Tweah named eleven sectors as “significant priority” areas, to include health, education, agriculture, energy and environment, industry and Commerce, infrastructure and basic services, security and Rule of Law, Public Administration and transparency and accountability.
He explained that across the eleven sectors of the budget, growth is at the highest peak, stating that for the health sector, there is 11.3 percent increment in allocation, while education sector has a draft increment of 12.3 percent.
He noted these are going to increments are going to help solve educational and health challenges; while also helping to protect women and mothers from childbirth complications, issues of drugs and other administrative issues across hospitals, teachers and primary spending in education.
