The Liberia Revenue Authority (LRA) is making a significant push for legislative amendments that would grant it fiscal autonomy, a move it claims will enable it to generate over a billion dollars in revenue annually.
Currently operating as a semi-autonomous agency responsible for collecting all government revenue across Liberia, the LRA argues that fiscal autonomy is crucial for stabilizing its budget and enhancing its operational efficiency.
Appearing before the Senate, LRA Commissioner General Dorbor Jallah emphasized the need for a stable and predictable budget to support the authority’s revenue-generating activities.”Fluctuations in our budget undermine the stability and progressive programs at the institution,” Jallah told the Senate.
He highlighted that securing a pegged budget would prevent financial uncertainties that currently hinder the LRA’s effectiveness.
One of the key benefits of the proposed fiscal autonomy is the potential for wage increases, which Jallah believes will boost employee motivation and productivity. The LRA’s ability to offer competitive salaries and maintain a stable financial environment is seen as critical to retaining skilled personnel and enhancing overall performance.
“Surpassing the billion-dollar revenue generation threshold requires the utilization of ever-growing technology, which is capital intensive but offers high returns,” Jallah noted. He stressed that a stable budget is essential for implementing these technological advancements, which are central to the LRA’s vision of increasing revenue collection efficiency.
Currently, the LRA operates with a budget of $22 million for the 2024 fiscal year, which constitutes about 3% of the national budget, far below the desired 5%.
Jallah is advocating for this increase to ensure the LRA can adequately fund its programs and achieve its revenue targets. “We can only achieve this when we have our budget pegged and not fluctuated,” he reiterated.
DG Dorbor Jallah outlined several innovative programs aimed at enhancing revenue generation through technology. These include digitalizing revenue collection processes and leveraging data analytics to optimize tax collection. “If we really leverage technology, we can actually get our results,” he said, pointing out that these advancements are crucial for the LRA to meet and exceed the billion-dollar revenue goal.
The LRA Commissioner General emphasized the importance of collaboration between the legislature, executive branch, and the LRA. He urged senators to support the legislative amendments that would grant the LRA fiscal autonomy, arguing that this collective effort is key to achieving the ambitious revenue targets. “Yes, Senators, we can raise one billion in revenue and even surpass it when we take the right measures,” Jallah asserted confidently.
In addition to seeking fiscal autonomy, Jallah proposed measures to close financial gaps in transitory accounts between the government and commercial banks. He believes these measures will further enhance the efficiency and transparency of revenue collection processes.
The LRA’s push for fiscal autonomy is a strategic move aimed at stabilizing its budget and significantly boosting revenue generation. By securing a stable budget, increasing employee wages, and implementing cutting-edge technology, the LRA is poised to surpass the billion-dollar revenue mark, contributing significantly to Liberia’s national fiscal budget.
The proposed legislative amendments represent a crucial step toward achieving this vision, promising enhanced financial stability and improved economic outcomes for the country.
