On Monday, November 18, 2024, President Joseph Nyuma Boakai formally submitted the Draft National Budget for Fiscal Year 2025 to the National Legislature. The proposed budget, totaling $851.8 million, marks a significant step toward the fiscal management of the nation’s resources and advancing Liberia’s development goals.
Delivered to the House of Representatives through the Chief Clerk, the budget submission initiates the legislative review process. It reflects key priorities under the ARREST Agenda for Inclusive Development (AAID), addressing critical government obligations, including debt servicing, infrastructure development, and economic stability.
The proposed FY2025 budget represents a 15.3% increase over the 2024 Recast Budget of $738.9 million, signaling the administration’s commitment to fostering growth despite global economic challenges.
The budget comprises two major components: Core Revenue of $833 million and Contingent Revenue of $18.8 million, allocated to sustain government operations and drive development programs under the ARREST Agenda framework.
President Boakai, in his communication to the legislature, emphasized the importance of timely budget approval to ensure seamless implementation in January 2025.
“This budget is a roadmap for our future. It reflects our commitment to building a more inclusive economy, creating jobs, improving infrastructure, and addressing the critical needs of our citizens,” President Boakai stated.
The budget submission aligns with Section 17.1 of the 2019 Amendment and Restatement of the Public Financial Management Act of 2009, which mandates the Government to present the proposed budget for legislative scrutiny and approval.
Key Allocations and Revenue Projections
Finance Minister Augustine Kpehe Ngafuan highlighted vital aspects of the budget during a press briefing on November 19, 2024. He disclosed that the total revenue envelope is projected at $851.8 million, with $791.76 million (93%) sourced from domestic revenue.
The breakdown includes:
Tax Revenue: $633.72 million (80% of domestic revenue)
Non-Tax Revenue: $138.5 million (17.4% of domestic revenue)
External Resources: $60 million (7% of the total budget), sourced from the World Bank ($40 million) and the European Union ($20 million). This represents a 50% increase in external resources compared to FY2024.
Minister Ngafuan announced that no government employee will earn less than $150 gross salary starting January 2025, in compliance with the Decent Work Act of 2015. He assured timely salary payments, stating that all government employees would receive their wages on or before the 24th of each month.
The FY2025 draft budget also includes significant salary adjustments for critical sectors such as healthcare, education, security, and public administration, ensuring improved compensation for doctors, teachers, Armed Forces of Liberia personnel, and law enforcement officers.
Meanwhile, the legislature begins its review of the proposed budget; there is extensive public anticipation regarding its approval and implementation. The budget’s priorities aim to promote national development, improve infrastructure, and uplift the livelihoods of Liberians, laying the foundation for continued progress throughout the upcoming fiscal year.
