CAPITOL HILL, Monrovia – At long last, President George Weah through the Ministry of Finance and Development Planning has submitted before the House of Representatives fiscal year 2024 draft national budget. It is to the tune of US$625.5 million, 20 percent less than the 2023 budget approved by the Legislature and signed into law by the President. This current budget is US$782.9 million, though it was later recast at US$759.4 million.
By Gerald C. Koinyeneh – [email protected]
It was submitted on behalf of the President by Madam Tanneh Brunson, Deputy Finance Minister for Budget and Development Planning.
The 2024 draft budget marks the last submission of President Weah as he is expected to hand over power to president-elect Joseph Nyumah Boakai come January 2024.
Acknowledging that, President Weah, in a letter to the House through Speaker Bhofal Chambers said the budget encompasses estimates of revenue and expenditure that were developed after careful consideration and analysis of the revenue envelope, non- discretionary obligations, and the realistic needs of the Government.
“Honorable Speaker and Members of the House of Representatives, while this budget is a reflection of the programs and priorities of the out-going administration, it should not be unexpected that the incoming administration may institute measures to tweak, recalibrate, or even recast the programs and priorities herein to indicate policy change, hopefully in the spirit of continuity in governance.”
In the wake of mounting pressures, especially national debt burden and recurrent expenditures, the President mentioned only critical cross-cutting national programs and projects in three sectors have been proposed under the Public Sector Investment Program (PSIP) segment of the budget. Among these is the National Road Fund under the Infrastructure and Basic Services Sector, he said.
The president is two months behind schedule in the submission of the budget. Last week, invoking his constitutional authority, President Weah requested the Legislature to extend their 6th Session for ten days starting December 11 through 22nd of December, 2023 to “discuss and act upon matters of national concerns,” including the FY2024 national budget. “I extend sincere apologies for the delay in submission attributed to the national preoccupation and distraction associated with the very competitive elections,” he said.
What’s in the budget?
Of the total US$625.57 million, US$623.14, or 99.61 percent is projected as domestic revenue, while the US$ 2.43 million, or 0.39 percent is projected to come from external resources.
Of the total US$625.57 million, the President said the recurrent component of expenditure is US$ 594.54 million, or 95 percent of the total proposed expenditure, while the total cost of Public Sector Investment Projects (PSIP) is projected to be US$ 31.03 million, or 5 percent of the total proposed expenditure.
The total amount of US$594.54 million earmarked for recurrent expenditure was divided among the following priorities including debt Service – US$80.90 million, domestic debt – 23.38, external debt-57.52
Compensation takes the largest trunk of US$308.0,goods and services – US$70.15 million – grants to governmental and non- governmental service delivery entities – US$105.83 million, subsidy to NGOs complementing the government’s efforts in strategic service delivery US$3.56 million.
Receiving the budget, Speaker Chambers said the budget should have been brought to three months for proper scrutiny before passage.
“As you know and we accept the apologies, this instrument should have been brought here three months ago so that we would have carefully looked at the process and ensured diligence”, he said.
Speaker Chambers said the legislature would do the utmost to ensure passage in the interest of the country and its people.
The Speaker said the body will pay keen attention to the Supreme Court’s ruling instructing the government to settle the arrears of former legislators and payment to victims of the shipwreck will be of majority priorities under the review process in up keeping coordination amongst the three branches of government.
But when he submitted the budget plenary later on Tuesday, the body voted in favor of a motion proffered by Rep. Francis Dopoe (River Gee Senator-elect) to hand over the draft instrument to the budget committee to report in the 55th Legislature.
What happens next?
If the House’s budget committee refuses to act on the draft instrument, the new 55th Legislature will take charge as soon as it is inaugurated. This means the new Boakai-Koung administration will invoke section 17 of the Public Financial Management Law of Liberia an authorize the new Finance Minister “to collect revenues and approve expenditures, in line with the proposed budget, up to one twelfth (1/12) of the Budget of the previous fiscal year.”
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