Liberia: Executive Submits Special National Draft Budget of US$301.5 Million to Run from July-December 2021
MONROVIA – The Ministry of Finance and Development Planning has submitted to the Legislature the Special Draft National Budget for fiscal year July 1 to December 31, 2021 in the tone of US$301.5 million consisting of only domestic revenue.
Acting Finance Minister Dr. Samora P.Z. Wolokolie presented the draft fiscal instrument to House Speaker Dr. Bhofal Chambers on Tuesday.
The submission is in accordance with section 65 of the amended Public Finance Management Act of 2009, which provides for the change in the fiscal year and for the formulation of a special national budget of six months to pave the way for transition to the new fiscal year, which begins in 2022.
Minister Wolokolie at the submission projected economic growth at 3.2 percent up from a slump of 3.0 percent in 2020, with recovery momentum continuing in 2022 at 4.0.
Priority areas of the special budget include Agriculture, Education, Energy and Environment, Health, Industry and Commerce, Infrastructure and Basic Services, Security and Rule of Law, Public Administration and Transparency and Accountability.
House Speaker Dr. Bhofal Chambers receiving the budget expressed hope that the special budget will serve the best interest of the people.
Speaker Chambers said: “We are thankful for the submission, and we hope it will serve in the best interest of our people. In consultation with you, we hope to do the best we can, and hope that this agenda centers around radical thinking of the pro-poor agenda for prosperity and development could be enhanced with the collective support of everybody.
“We also hope that the press should also be able to propagate the message in a possible way so that citizens know what the special budget is about.
According to Speaker Chambers, the Legislature base on constitutional provision of article 34d, will do what is required of that body.
“Having said that, base on our constitution, article 34 d, we will do what is required of us. We will do and shall commit ourselves to doing it. We expect that the Senate in the same way will cooperate or coordinate other activities of the draft budget”.
Of the approved budget for FY2020/21, core revenue (domestic revenue and grants) amount to US$444.6 million representing 74.8 percent of the approved resource envelope while financing from other sources account for US$149.8 million representing 25.2 percent.
Domestic revenue amounts to US$437.1 million representing 98.3 percent of core revenue and 73.5 percent of the approved resource envelope while grants amount to US$7.5 million representing 1.9 percent of core revenue and 1.3 percent of the approved resource envelope.
Revenue brought forward from the previous fiscal year (FY2019/20) amounts to US$23.8 million accounting for 15.9 percent of other financing sources and 4.0 percent of the approved resource envelope while anticipated foreign borrowing amounts to US$126.0 million representing 84.1 percent of the total other financing sources but 21.2 percent of the approved resource envelope.
The total realized revenue at the end of the third quarter of 2020/21 amounted to US$397.6 of which core revenue plus grant amounted to US$387.6 million while revenue brought forward from the previous fiscal year (FY2019/20) amounts to US$10.0 million.
Thus, the amount available to spend represents a collection rate of 84.9 percent of the total budgeted revenue and 66.9 percent of the total resource envelope for FY2020/21.