The House of Representatives has mandated its Ways, Means and Finance Committee to begin hearings into Fiscal Year 2024 Draft National budget. 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, non-tax revenue of US$109.8 million or 16 percent, and externally sourced revenue of US$42.4 million or 6 percent. This year’s budget represents a decrease of 12.7 in comparison to FY2023 budget.
According to a communication from President Joseph Boakai to the House of Representatives, the fall is mainly attributed to a decrease of US$144.6 million in external financing.
“In order to manage the debt portfolio which crowds out spending on critical priorities our government has decided to exercise fiscal restraint and discipline when it comes to acquiring new debts. This decrease will offset by increases in tax revenue of US million or and non-tax revenue of US million,” President Boakai alerted.
The instrument says the proposed expenditure for FY2024 is shared between recurrent expenditure of $640.5 million or 93 percent and public sector investment projects (PSIP) is US$51.9 million or 7 percent.
Among the key recurrent expenditures are debt services to commercial banks arising from constructure projects and to multilateral institutions in order to unlock support to 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 and education and social service sectors.
The Liberian Leader informed the Speaker and Members of the Legislature that the successful execution of thebudget in a credible fashion will require that government takes certain deliberate actions collectively beginning with fiscal discipline as the guiding principle for budget execution.
“Secondly, heads of spending entities must exercise their fiduciary responsibility to ensure the highest degree of fiscal probity and accountability as the budget holders. We must be reminded about the requirements of the PFM Law that spending entities make periodic reports to facilitate routine audits. Adherence to these requirements has been the missing link in our budget execution and must be restored. I urge heads of spending entities to lend their fullest cooperation as we endeavor to depart from business as usual to pursue a path of transparency and accountability in public financial management,” the President added.
Meanwhile, the committee is expected to report within a period of two weeks.