A recent U.S. State Department report on Liberia’s fiscal transparency has highlighted positive strides and critical concerns regarding the country’s financial governance. The 2024 Fiscal Transparency Report sheds light on improvements made by the government in certain areas but underscores unresolved issues that continue to hinder the country’s fiscal practices.
The report indicates significant progress in the public availability of budget proposals and the government’s efforts to make end-of-year reports accessible promptly. However, it also points to key issues that contributed to Liberia’s failure to meet the fiscal policy indicator on the 2025 Millennium Challenge Corporation (MCC) scorecard after meeting it the previous year.
The U.S. State Department’s 2024 Fiscal Transparency Report is in accordance with Section 7031(b) of the Department of State, Foreign Operations, and Related Programs Appropriations Act. The report outlines the Department of State’s processes for completing its assessments. It describes the minimum requirements for fiscal transparency, which were developed and updated in consultation with relevant federal agencies.
The report commended the Liberian government for making strides in publishing its end-of-year reports within a reasonable time frame and ensuring that budget proposals were made available to the public on time. The government’s progress in natural resource management was also highlighted, particularly with the public disclosure of basic information on extraction awards.
Additionally, the General Auditing Commission (GAC), which is responsible for auditing the government’s finances, was praised for having the legal powers to access the annual budget directly and on time. The report notes that these steps reflect Liberia’s commitment to enhancing fiscal transparency and improving governance under President Joseph N. Boakai’s administration.
Despite the progress, several critical issues remain unresolved. A major concern is the existence of off-budget accounts that are not subject to audits or public oversight. The report indicates that this lack of transparency raises serious concerns about the potential misuse of public funds and undermines efforts to strengthen financial accountability.
The failure to disclose earnings from state-owned enterprises (SOEs) and to make enacted budgets publicly available within a reasonable time frame also raised concerns. These gaps in transparency make it difficult for the public to assess the actual state of government finances and hold officials accountable for how public resources are being managed.
Moreover, although the GAC has the legal authority to access the budget, the report pointed out that the commission did not meet international independence standards, potentially limiting its ability to perform its duties free from political interference.
Another significant issue identified by the report is the limited availability of information on Liberia’s national debt. Debt-related data was not easily accessible to the public, which restricted citizens’ ability to understand their government’s long-term financial obligations.
The report also highlighted ongoing corruption concerns in awarding natural resource extraction contracts. Corruption continues to plague the resource sector, undermining trust in the government’s ability to responsibly manage the country’s natural wealth.
These fiscal governance challenges have directly impacted Liberia’s performance on the 2025 MCC scorecard. The country failed to meet the Fiscal Policy indicator, a crucial benchmark for foreign assistance eligibility. Liberia’s failure to meet the fiscal policy standards for the second consecutive year raises questions about the government’s commitment to addressing long-standing financial mismanagement and lack of transparency.
Although the country has made progress in some areas, the persistence of significant weaknesses in its fiscal practices means that much more work is needed to restore public trust and ensure compliance with international fiscal governance standards.
The U.S. State Department’s report offered key recommendations for improving Liberia’s fiscal governance. Among the recommendations were:
Publishing the enacted budget and providing information on government debt obligations, including for major state-owned enterprises, within a reasonable period.
Disclosing earnings from major state-owned enterprises, eliminating off-budget accounts, or subjecting them to adequate oversight and audits.
Ensuring that the supreme audit institution meets international independence standards and is adequately resourced.
The U.S. State Department’s 2024 Fiscal Transparency Report provides a mixed assessment of Liberia’s fiscal governance, recognizing progress in some areas but emphasizing greater accountability and transparency. With the upcoming 2025 MCC scorecard at stake, the Liberian government faces increasing pressure to address these issues and ensure that financial resources are managed responsibly for the benefit of all Liberians.
