Liberia’s Minister of Finance and Development Planning, Honourable Augustine Kpehe Ngafuan, has unveiled the draft national budget for Fiscal Year (FY) 2025, highlighting the Government’s ambitious efforts to stimulate economic growth and improve public services nationwide.
During a press briefing at the Ministry of Information on Tuesday, November 19, 2024, Minister Ngafuan announced a proposed budget of US$851.8 million, representing a 15.3% increase from the previous fiscal year. He emphasized that the budget reflects the administration’s dedication to addressing critical national challenges and advancing Liberia’s long-term development goals.
The budget covers the period from January 1 to December 31, 2025, and prioritizes infrastructure development, education, healthcare, agriculture, and wage adjustments for public sector workers.
The draft budget is supported by US$833 million in primary revenue and an additional US$18.8 million in contingent funds, with domestic revenue accounting for 93% of the total. Revenue streams include taxes on income, profits, and goods and services, complemented by contributions from international partners like the World Bank and the European Union, which are expected to provide US$60 million—a 50% increase from last year.
Minister Ngafuan projected a 5.8% economic growth rate for 2025, up from the estimated 5.1% in 2024. This growth is expected to be driven by solid performance in the mining, agriculture, manufacturing, and services sectors. Agriculture and fisheries are expected to contribute 29% of the Country’s GDP, while the services sector is projected to account for 38%.
The Public Sector Investment Program (PSIP) is a cornerstone of the budget, which has seen a 45% increase from US$67.4 million in FY2024 to US$98 million in FY2025. This surge underscores the Government’s focus on infrastructure and development projects under the ARREST Agenda for Inclusive Development (AAID), a five-year national development framework spanning 2025 to 2029.
The 2025 budget aligns with the ARREST Agenda by allocating US$52.9 million for critical infrastructure projects, including road rehabilitation and transportation link construction in rural and underserved areas.
The agriculture sector is also a priority, with US$7 million earmarked to strengthen the value chain through investments in research, extension services, and processing facilities.
For education, nearly US$7 million is allocated to expand and renovate schools while advancing Liberia’s Digital Transformation Program. Additionally, US$14 million is set aside for healthcare improvements, including hospital upgrades and expanding drug revolving funds for community pharmacies.
One of the most significant aspects of the FY2025 budget is the proposed wage increases for government employees. Minister Ngafuan announced a US$16 million allocation to adjust the salaries of approximately 28,200 public sector workers, ensuring compliance with the Decent Work Act of 2015, which sets a minimum wage of US$150.
Provisions are also made to address the issue of volunteer workers in health and education by integrating more of them into the formal payroll. Based on their roles, healthcare workers, including nurses, midwives, and physician assistants, will receive monthly top-ups of US$25 to US$50.
In a landmark decision, the Government has allocated funds to provide insurance coverage for Liberia National Police officers, fulfilling the National Security Act of 2015 requirements and ensuring enhanced security for those serving in challenging conditions.
Despite its ambitious goals, the FY2025 budget faces revenue constraints. Total funding requests from government ministries and agencies exceed US$2 billion, highlighting the gap between resources and national development needs. To address this, the Government plans to enhance revenue collection through stricter enforcement by the Liberia Revenue Authority (LRA) and improved taxpayer compliance.
Minister Ngafuan underscored that the FY2025 budget marks the beginning of a multi-year effort to tackle Liberia’s development challenges. The Government aims to expand the budget in subsequent years to meet the Country’s growing needs.
Reaffirming the Government’s commitment to fiscal responsibility, Minister Ngafuan announced the re-engineering of payment systems to ensure public sector salaries are disbursed by the 24th of each month. The new process, initiated in November 2024, seeks to improve morale and efficiency among government employees.
The Minister thanked President Joseph Nyuma Boakai for guiding the budget’s formulation. He emphasized the President’s rallying call to “Think Liberia, Love Liberia, and Build Liberia” as a driving force behind the proposed financial plan.
Meanwhile, the draft budget now awaits legislative review. As discussions develop, citizens and international stakeholders will closely monitor its implementation to determine whether this ambitious plan can catalyze the transformative growth Liberia urgently needs.
