CAPITOL HILL, Monrovia – The House of Representatives has given the green light to President Joseph Boakai’s plea to authorize US$41.3 million for immediate use this February, averting a potential government shutdown.
By Gerald C. Koinyeneh – [email protected]
The decision, made on Tuesday, came after “thorough” scrutiny by the joint committee on Ways, Means, Finance, and Public Accounts and Expenditure headed by Rep. Dixon Seboe (District #16, Montserrado County).
The committee, tasked with reviewing the President’s request, emphasized the urgency of sustaining government operations while the 2024 budget undergoes finalization for resubmission.
Last week, the President said due to the fact that the draft budget for fiscal year 2024 was returned and is being finalized for resubmission, the operations of the government have to continue to avoid a shutdown.
“In view of the above, we are seeking the authorization to spend the amount of US$41,300,000.00 as reflected in the detailed attachment. This amount will cover the Government operations for the month of February 2024,” the President said.
Following its assessment, the joint committee proposed the adoption of the report, supported by a resolution, to be forwarded to the Senate for concurrence. During deliberations, a motion, proffered by Rep. Edward Flomo (District #13, Montserrado County) endorsing the committee’s report was passed with a majority vote of 38 in favor, while two, including Rep. Musa Hassan Bility (District #7, Nimba County), voted against, and two abstained.
Allocation Breakdown
Of the total US$41.3 million, US$31,700,000 (77%) is earmarked for expenditures. This includes US$5,700,000 (14%) for debt servicing and US$26,000,000 (63%) for employee compensation.
Policy priorities are allocated US$2,000,000 (5%), with US$1,914,210 (5%) dedicated to the President’s 100-day objectives, and US$58,790 allocated for GAC audits.
Government operations, as outlined in the special budget draft, receive US$7,600,000 (18%). This includes US$1,250,000 (3%) designated for security services, US$100,000 for Armed Forces Day, US$995,500 (2%) for food and catering services (hospitals, prisons, barracks), US$679,446 (2%) for office supplies, US$547,899 (1%) for fuel and lubricants, among other expenses.
The House of Representatives will transmit the resolution to the Liberian Senate for review and action, which may involve acceptance, rejection, or modification.
Why the National Budget Delayed
In December 2023, the outgoing 54th Legislature failed to act on the proposed National Draft Budget in the tune of US$625,570,000 submitted by the outgoing George Weah Administration. The Legislature sent back the proposed financial envelop, and requested the incoming Boakai-Koung administration to review and align it with their government’s priorities and resubmit. The Weah, administration, with 22 more days left to leave power, invoked the Public Financial Management Law to continue government’s operations.
The law states that “In the case where the Legislature is unable to approve the National Budget before the start of the fiscal year, the Minister is authorized 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. Expenditure of said (1/12) by the Minister shall be included in the subsequent financial outturn”.
One-twelfth of the approved Fiscal Year 2023 budget of US$782,940,000 would amount to US$66,078,333 as per the provision of the PFM Law.