By Bill W. Cooper
The government through the Ministry of Finance and Development Planning has instituted strict fiscal reforms, significantly reducing benefits for officials across all State-Owned Enterprises (SOEs) and government institutions.
The move however comes following public concerns over excessive allowances, particularly in fuel and scratch cards, which had been carried over from the previous administrations, including former President George Weah Coalition for Democratic Change (CDC) government.
Also, the move comes in the wake of the recent announcement regarding the closure of USAID support to Liberia, a development that has raised concerns about the future of development initiatives in the country.
However, under the CDC-led government, a process called “harmonization” was introduced to regulate salaries but many SOEs shifted portions of their officials’ earnings into operational benefits such as fuel, scratch cards, and vehicle maintenance.
This has since allowed government executives to maintain high compensation while salaries appeared reduced, with civil servants who are normally referred to as the “engine” of the government remain Underpaid.
Making the situation worst, the issue of excessive allowances later resurfaced in recent months, with officials across ministries, agencies, and SOEs receiving substantial benefits, including some heads of entities getting up to 800 gallons of fuel per month.
In response to public concerns, President Joseph Boakai instructed his Finance Minister to introduced major fiscal reforms to curb spending across all government’s spending entities, including various SOEs.
Under the new policy, which takes effect in this year 2025 budget, all government officials, including ministers, heads of agencies, and SOE executives, will have their benefits significantly reduced.
Fuel allowances-heads of entities will now receive a maximum of 150 gallons per month, a sharp reduction from the 800 gallons previously allocated, while scratch card allowances capped at US$200 per month for heads of entities.
For deputy heads of entities, fuel reduced to 125 gallons, with scratch cards limited to US$175 per month, and principal assistants’ fuel capped at 100 gallons, with scratch cards at US$150 per month.
According to the policy, no head of an entity will receive a gross salary exceeding US$7,000 as was done in the past, further aligning public sector compensation with the country’s economic realities.
The new fiscal measures, the government noted, sets a clear distinction between the past and present, ensuring that government cuts down waste and improves the living standard and well-being of all Liberians.
Meanwhile, with these reforms, the government further noted that it has not only addressed public concerns about wasteful spending, but also demonstrates its commitment to prudent financial management.
The new policy, the government added, ensures that resources are used more effectively, preventing the continuation of unchecked benefits that had drained public funds for years and decades.
