MONROVIA – Liberia’s Finance Minister, Augustine Kpehe Ngafuan, has announced a record-breaking draft national budget of US$1.211 billion for the 2025 fiscal year, marking a significant milestone in the country’s history. The budget, which represents a 47% increase from the previous year, is expected to drive growth, improve infrastructure, and boost development in key sectors such as energy, roads, education, and healthcare, according to the Finance Minister speaking yesterday at the regular MICAT Press Briefing. He brags, and rightfully, that it the first time in Liberia’s history for the country’s draft national budget to surpass the billion dollar market. The Analyst’s George C Flomo reports.
For the first time in Liberia’s history, the draft national budget has surpassed the billion-dollar mark, totaling US$1.211 billion, according to Finance and Development Planning Minister, Hon. Augustine Kpehe Ngafuan , who addressed a special press briefing on Monday at the Ministry of Information, Cultural Affairs, and Tourism (MICAT).
The special session unusual for a Monday was called to provide clarity on the 2025 draft national budget recently submitted to the National Legislature by President Joseph Nyuma Boakai, through Minister Ngafuan
Minister of Finance announced that the US$1.211 billion budget represents a remarkable increase in domestic revenue generation, reflecting what he described as “a country doing more for itself.”
“Of the total revenue estimate, US$1.139 billion or 94 percent comes from domestic sources,” Ngafuan said. “External resources account for only six percent, or US$72 million.”
He added that this represents a 47 percent increase, or US$333 million, over the previous fiscal year, marking a major leap in national revenue performance.
Domestic Revenue Growth and Breakdown
The minister disclosed that the domestic revenue projection will come primarily from tax revenue (US$797 million) and non-tax revenue (US$585 million). The non-tax category includes a US$200 million signature bonus expected from the potential extension of ArcelorMittal Liberia’s concession agreement, which remains subject to legislative ratification.
He noted an additional US$28 million in contingent revenue, indicating the government’s optimism in surpassing fiscal expectations.
Investment in Infrastructure and Development
Highlighting the government’s development agenda, Ngafuan said the Public Sector Investment Program (PSIP) has grown from US$107 million this year to US$281 million in the upcoming fiscal year. Of this amount, US$100 million is earmarked for two critical sectors, roads and energy.
“Fifty million will go toward roads and another fifty million to the Liberia Electricity Corporation (LEC) for improving access, installing smart meters, and expanding electricity coverage,” he emphasized.
Ngafuan added that the government has allocated US$15 million in additional funds for frontier counties; Nimba, Bong, and Grand Bassa in recognition of their proximity to ArcelorMittal’s operational corridor.
Support to Key Sectors
Minister Ngafuan also revealed that increased funding will go to education, the judiciary, and healthcare. The University of Liberia and judicial institutions will benefit from allocations for court expansion, digitization of judicial records, and institutional capacity-building.
He announced that the government will assume salary payments for workers at the John F. Kennedy Medical Center’s LY Hospital, a private institution offering critical public services, to prevent its closure.
“If we don’t do that, that critical facility will be history,” Ngafuan said, adding that government will also fund staff recruitment and operations for the soon-to-be-dedicated Redemption Hospital early next year.
Debt Management and Economic Responsibility
The Minister acknowledged that Liberia’s total debt stock now stands at approximately US$2.7 billion, but assured that the government is managing it responsibly through a debt management strategy.
Debt service payments, he noted, have increased from US$150 million last year to US$230 million in the new budget.
“We are not demonizing debt,” he clarified. “The issue is how you use the debt. All new debts contracted must yield significant social and economic returns.”
Incentives and Institutional Strengthening
The budget also includes provisions for over 200 engineers to be hired by the Ministry of Public Works, salary top-ups for specialized professionals, and support to transparency and accountability institutions such as the Liberia Anti-Corruption Commission (LACC) and General Auditing Commission (GAC).
These institutions, Ngafuan said, play a critical role in sustaining the country’s governance and fiscal transparency ratings.
No Shortfall, Despite Aid Cuts
Minister Ngafuan dismissed speculations of a fiscal shortfall in 2024, affirming that Liberia recorded strong domestic performance, collecting nearly US$700 million in local revenue last year.
He also acknowledged the loss of over US$300 million in aid following the USAID funding suspension, which affected more than 30 projects. However, he said the government managed the shock effectively.
“Yes, there was turbulence, but as I said, this ship is captained by an experienced captain—President Boakai. A good captain doesn’t promise no turbulence; he navigates through it,” Ngafuan remarked, drawing an analogy that earned applause.
Hope for 2025 and Beyond
The finance minister expressed optimism that the 2025 fiscal year would be transformative, predicting growth, job creation, and business opportunities across sectors.
“The budget will deliver a whole lot of goodies,” he said. “Nearly US$300 million in public sector investment means contracts, jobs, and opportunities for our people. With or without ArcelorMittal, we are above the billion-dollar mark.”
Ngafuan urged public debate and legislative scrutiny, describing the process as “a true exercise in democracy.” He said the Ministry hopes the Legislature will pass the budget before the start of the fiscal year, as was achieved last year.
“We are not taking backward steps,” he concluded. “With the guidance of President Boakai and the effort of every Liberian, we can only move forward. Next year will be better.”