On September 1, 2024, the Senate Public Accounts, Expenditures, and Audits Committee released its analysis of the Budget Performance Report for the first half of Fiscal Year 2024. The report highlights critical concerns in revenue collection, budget allocations, and expenditures that could significantly impact the Liberian economy and the government’s ARREST agenda for inclusive development.
Despite an anticipated economic growth of 5.6% for the year, the Committee identified underperformance in key revenue sources, notably the Goods and Services Tax (GST) and Corporate Income Tax (CIT), coupled with a concerning decline in revenue collection across various ministries and agencies. The report also underscores the failure of state-owned enterprises to meet their budget support commitments, which contrasts with their ongoing Corporate Social Responsibility (CSR) contributions.
Furthermore, the analysis points to significant discrepancies in the mid-year financial report issued by the Ministry of Finance and Development Planning (MFDP), raising questions about the accuracy of the nation’s fiscal data. These errors, if not rectified, could lead to severe consequences for Liberia’s financial management and economic stability.
On the expenditure side, the Committee notes that only 35% of the total annual budget has been disbursed in the first half of the fiscal year, with vital sectors such as health, education, agriculture, and infrastructure receiving disproportionately low funding. The austerity measures adopted by the fiscal authorities, which have led to reduced spending, are seen as potentially contractionary and harmful to economic growth.
The Committee has called for immediate corrective actions, including enhanced oversight of state-owned enterprises, improved tax compliance, and a more robust and transparent fiscal policy to ensure that the nation remains on track to achieve its economic goals. The Committee also recommends that the Minister of Finance and the Commissioner-General of the Liberia Revenue Authority (LRA) be summoned for a special hearing to address these critical issues.
Senator Amara Konneh reaffirms his commitment to ensuring transparency, accountability, and effective governance in Liberia’s financial management.
