–Acting Finance Minister Discloses
The Acting Minister of Finance and Development Planning, Anthony G. Myers, has provided a mid-year update on the state of the Liberian economy, projecting a growth rate of 5.1 percent.
Speaking at a special news briefing at the Ministry of Information, Culture and Tourism on Wednesday, July 17, 2024, Acting Minister Myers said the economic growth is driven by strong performances in key sectors such as mining, agriculture, fishery and services.
Minister Myers underscored that the economic growth is expected to accelerate to 5.8 percent in 2025. Over the medium term, he indicated that an average growth rate of 5.6 percent is supported by strong growth in mining activities, expansion in services, significant infrastructure investments with support from development partners, and increased economic activities aided by improved electricity supply.
Commenting on structural reforms, Minister Myers disclosed that, in order to sustain and enhance this growth, the government is committed to implementing structural reforms in crucial sectors such as energy, trade, transportation and financial services. These reforms, he said, are aimed to create a more conducive environment for economic activities and investment.
Minister Myers emphasized that inflation, as an indicator of economic performance, slowed down significantly, with the inflation rate projected to be at 7.0 percent by the end of 2024. This, he said, has seen the stabilization in prices on the Liberian market. He further noted that inflation is expected to decline further to 5.0 percent by 2027.
Touching on fiscal performance, Minister Myers averred that revenue collection is on track, disclosing that the total revenue collected by the Liberia Revenue Authority (LRA) at the end of June FY2024 amounted to US$342.6 million. The minister said cash-in-bank is US$315.4 million while revenue-in-transit stands at US$27.2 million.
The Acting Finance Minister made it clear that taxes on incomes and profits (US$137.2 million) and taxes on international trade (US$108.8 million) were the major performing lines.
Minister Myers told the MICAT press briefing that government remains optimistic about the country’s economic future, and is committed to ensuring sustainable growth and development through continued reforms and strategic investments.
On expenditure, Myers said, as of June this year the government has spent US$255.4 million out of the US$315.4 million collected by the LRA.
Providing detailed information on efforts of President Joseph Nyumah Boaka’s leadership on fiscal decentralization, the Acting Finance Minister said the Ministry of Finance and Development Planning, along with the Ministry of Internal Affairs and partners, recently held a validation of the regulations of the Revenue Sharing Law that will see County Service Centers across the country retain 40% of revenues they generate.
He said with administrative decentralization being implemented currently with the setting up of county councils, the President has instructed the implementation of fiscal decentralization.
In furtherance of the Presidents vision for the full implementation of the Local Government Act, Minister Myers disclosed that a Local Government Fiscal Board will be appointed, with their mandate being to set the expenditure ceiling annually for county administrations.
As it stands, Myers said the county treasuries are being strengthened, as ten ministries and agencies have agreed to disaggregate their budget and that will see checks being received in the counties and vouchers being processed in the specific counties.
Meanwhile, Minister Myers disclosed that massive efforts are being exerted on the crafting of the National Development Plan, the Public Sector Investment Plan and the County Development Agendas.
He noted that two Liberian think-tanks have been contracted to lead the efforts in the crafting of these plans, and logistics have already been procured by the Ministry of Finance and Development Planning for the roll-out of the consultation that begins shortly.
Furthermore, Acting Minister Myers disclosed that the Ministry of Finance has concluded a plan with the General Auditing Commission (GAC) to conduct an audit of the Ministry of Finance and Development. The Minister said the audit will cover the period January 1, 2022 to January 31, 2024.