By Grace Q. Bryant
The House of Representatives has accelerated the review process of the proposed 2024 National Budget.
Following deliberations, the House has taken a swift decision, signaling a proactive approach to fiscal governance.
The decision comes after the President submitted the draft budget to the Legislature, highlighting key priorities and resource allocations for advancing Liberia’s development agenda.
The budget totaled US$692.4m, with Compensation of Employees at US$297m, Use of Goods and Services at US$90.2m (including US$4.7m, for drugs and medical consumables), acquisition of Non-financial Assets at US$3 million, Social Benefits (pensions, retirement benefits, etc.) at US$17.9m, Subsidies at US$1.7m, and Grants at US$101.7m
The proposed resource envelope for the FY2024 budget is projected at US$692.4 million, of which Tax Revenue accounts for US$540.2 million or 78 percent, with a Non-tax Revenue of US$109.8 million or 16 percent.
Externally sourced revenue is projected at US$42.4 million or 6 percent of the revenue estimate. Compared to the FY2023 budget outturn of US$793.3 million, the FY2024 budget represents a decrease of 12.7 percent.
The proposed expenditure for FY2024 is shared between recurrent expenditure of $640.5 million or 93 percent, and public sector investment projects (PSIP), which is US$51.9 million or 7 percent.
Among the key recurrent expenditures are debt services to commercial banks arising from contractual projects and to multilateral institutions to unlock support for medium-term development priorities.
Other recurrent expenditures are compensation of employees, operational goods and services for government entities, and subsidies, grants, and transfers to governmental and non-governmental institutions in the health, education, and social service sectors.
The proposed recurrent expenditure of US$640.5 million has been allocated towards major expenditure categories, including Debt Service (domestic and foreign), US$129 million; Compensation of Employees, US$297 million; Use of Goods and Services, US$90.2 million (including US$4.7 million for drugs and medical consumables); acquisition of Non-financial Assets, US$3 million; Social Benefits (pensions, retirement benefits, etc.), US$17.9 million; Subsidies, US1.7 million, and Grants, US$101.7 million.
The National Budget is the framework for planning and executing short, medium, and long-term public sector investments that will reduce the infrastructure and other capacity gaps that constrain growth and development.
However, given the limited time to design and formulate projects through the regular sector working group for inclusion in the budget, ongoing public sector investment projects that are aligned with the ARREST Agenda have been prioritized, such that allocations for those projects are ring-fenced to ensure their completion.
The proposed allocation for Public Sector Investment Projects is US$51.9 million.
Some critical programs that have been prioritized within the PSIP envelope include the following allocations: US$26.3 million to Road Fund projects; US$13.9 million to 100-day Deliverables; US$3.6 million to District Development Projects; US$1.8 million to Youth ICT Capacity Building, and US$1.5 million for Asset Recovery Task Force.
The President, in his communication to the Plenary, said, “Honorable Speaker and Members of the Legislature, we have already missed nearly the entire first quarter of the fiscal year of full budget execution.
The delayed commencement of fully executing the budget and the approaching rainy season have traditionally adversely affected the timing and implementation of programs and projects.
It is against this background that I implore your indulgence to expeditiously enact the Draft FY2024 Budget into law for its full execution”.
In response to the President’s communication, a motion was filed by Bong County District 3 Representative, Marvin Cole, and the House referred the President’s communication to its Ways, Means, and Finance Committee. This committee has been tasked with expeditiously reviewing the budget proposal and reporting back within a tight timeframe of two weeks.
The accelerated review process underscores the Legislature’s commitment to collaborative governance and responsiveness to national priorities. By prioritizing the timely enactment of the FY2024 budget, lawmakers aim to facilitate effective budget execution and mitigate potential disruptions, especially with the approaching rainy season.
As the budgetary process gains momentum, stakeholders anticipate constructive engagement between the Executive and Legislative branches to ensure the budget reflects the nation’s developmental aspirations.
With the House of Representatives taking swift action, Liberia is poised to advance its fiscal agenda and lay the groundwork for sustainable growth and prosperity.
