CAPITOL HILL, Monrovia – The Ministry of Finance and Development Planning has finally submitted the highly anticipated fiscal year 2024 draft national budget to the Legislature.
By Gerald C. Koinyeneh – [email protected]
It is to the tune of US$692 million, a 10.6% increase (US$66.43 million) of the previous budget that was returned to the executive in January this year.
That draft budget, submitted by the outgoing Weah-Taylor administration in December 2023 was to the tune of US$625.57 million, but was sent back following the inception of the Boakai-Koung administration.
On Thursday, Boima S. Kamara, Finance and Development Planning Minister led the Ministry’s delegation in submitting the draft budget.
Anthony Myers, Deputy Minister for Fiscal Affairs said 93 percent of the new draft budget comes from domestic revenue, with just over six percent coming from external sources.
“We have programmed no borrowing in the budget,” said Myers. “We expect to make some performance both from the domestic and our external relations, to increase our budget support from external parties, we are hoping that with all of our collaboration, we can have revenue overperformance, backed by expenditure control and prudent financial management.”
On the expenditure side, Madam Tanneh Geraldine Brunson, who maintained her post as Deputy Finance Minister for Budget, said the new government made some allocations to ministries and agencies’ operational cost as compared to what was submitted previously.
“We have managed to allocate some funding to make institutions operational. It was a difficult because of the numerous challenges that we have had – the first call being compensation and debt. When you take that off, the fiscal space was very small. But we have managed to allocate funding so that most of the institutions will be able to operate,” she said.
She further said US$51 million was allocated to the Public Sector Investment Program (PSIP), and of that amount, US$22 million allocated to President Joseph Boakai’s 100-day deliverables. The balance was allotted to the road fund and other priority projects that are currently ongoing.
Compensation of government’s workers, which has always been the largest allotment, was reduced from US$305 million to US$297 million.
Deputy Speaker Thomas Fallah, serving as acting Speaker, received the draft financial instrument. The Deputy Speaker thanked the Ministry for the submission and pledged the Legislature’s cooperation to ensure the needs of Liberians are met.
He said: “The Legislature understands that there are lots of computing interests when it comes to the fiscal financial instruments. The Legislature is inclined to cooperate. Please convey our assurances to the President. We have been awaiting it (the draft budget). It is our hope that this is just a symbolic gesture that the budget has been submitted.”
Continuing, he said, “This is a post-election budget, we hope the interest of our people are taken into consideration and prioritized.”
There has been a huge debate surrounding the submission of the fiscal year 2024 draft budget by the Boakai-Koung administration.
In the absence of the budget, the Legislature granted the President’s request to use US$41.3 million to run the government for the month of February to avoid a shutdown.
Some lawmakers questioned the legality of the Legislature’s decision. Rep. Musa Bility (District #7, Nimba County) said the budget lacks detailed explanations, and was illegal and violated the Public Financial Management Law of Liberia.
However, speaking to legislative reporters on Capitol Hill, House Speaker Fonati Koffa said the decision was a just political decision in line with the law. He explained that since the Legislature took an unprecedented decision to send back the draft budget to allow the Boakai-Koung administration to realign in line with its programs, granting the President’s request to spend US$41.3 million while it works on the budget was not wrong.
In addition, the Speaker said he was not prepared to lead a political maneuvering that could strangulate the government and deny civil servants their salaries.
Meanwhile, since the submission of the budget coincided with the Legislature’s first break, it is highly anticipated that they would either recall themselves or be called back by the President.