MONROVIA – The Senate Chairperson of on Public Accounts Committee (PAC), Gbarpolu County Senator Amara Konneh, said his committee looks forward to working collaboratively with other colleagues in the Senate and the Ministry of Finance and Development Planning to address a number of critical concerns.
Konneh observed in a release that despite the projected 5.6% economic growth this year, there are notable deficiencies in tax collections, including GST, CIT, and withholding taxes on services rendered, which require our attention.
“We are deeply concerned about the declining revenue performance across various sector ministries and agencies, such as the Ministry of Foreign Affairs, Liberia Immigration and Naturalization Services, and the Ministry of Transport,” the PAC Chairperson said. He added: “State-owned enterprises are falling short of budget support payments but are contributing to Corporate Social Responsibility (CSR). We need to ensure that dividend payments to support the budget are prioritized”.
Another issue of concerned to the Senator is what he called “the significant decline in road fund revenue, juxtaposed with LPRC’s reported profits, which demand further investigation and action”.
He stressed the underperformance of international trade or customs revenue contribution, especially in light of positive macroeconomic performance, requires a closer assessment and potential corrective measures.
“We have other concerns about the need for a budget recast,” he noted. “First, as submitted to the Legislature, the recast budget shows different recast budget data. On page One of the document, MFDP states that ‘the approved resource envelope has been revised downward by 2.3 percent or US $17.3 million, from US $738.8 million to US $730.8 Million,’ while the data in the Economic Classification column on page 1 of the recast budget is USD 721.5 (738.8 million minus 17.3 million).”
“The arithmetic is not adding up,” he revealed, and added: “Second, the mid-year budget performance report from MFDP, published on its website, contains conflicting numbers for the revenue left to be collected for the remainder of the year.
“It states $394,145,716 in one part of the report and $351,711,441 in another. It’s important to reconcile all these conflicting numbers to ensure that the decision to recast the budget is based on accurate information to make it credible.”
Konneh said government needs to ensure that any adjustments to the budget focus on enhancing the well-being of ordinary Liberians by year’s end by reallocating funds to key priority areas.
“I am committed to advocating against reductions in spending on critical areas such as Health, Education, and social protection, especially where disbursements have been insufficient,” he said. “ It’s crucial to safeguard investments in economic drivers such as agriculture and essential infrastructure like roads and electricity to support our nation’s progress.”
The Gbarpolu Senator also observed that the revised budget has decreased by USD 17.3 million, from USD 738.8 million to USD 721.5 million.
“The Executive Branch’s submission explains that the recast is based on the revenue performance trend over the first six months of FY2024, which has impacted revenue outcomes and prioritized critical expenditures for the country. The President’s submission also states that ‘the recast aims to rebalance the budget to prevent a shortfall and safeguard crucial expenditure lines.’”
According to him, the budget is closely tied to economic performance and the government’s development goals. According to the midyear budget execution report from the MFDP, published on its website, the economy is performing well, with projected growth of 5.6% for this year and strong revenue generation.
“However, an estimated reduction of less than 2.5% in the original budget allocations is requested. Further examination and efforts are needed to develop a more comprehensive solution,” he warned, added: “President Boakai’s ARREST agenda presents an opportunity to drive inclusive development in the country. It’s crucial to prioritize spending carefully in the recast budget and medium-term framework to ensure its success.”
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