Monrovia – The Liberian government is spending millions outside the approved budget, raising red flags over transparency and fiscal discipline. An analysis of the FY 2024 National Budget reveals unauthorized expenditures across key institutions, with the National Legislature alone overshooting by over $4 million.
An analysis of the budget overturn as published in the 2025 National Budget shows a troubling pattern of off-budget spending across multiple government agencies. While the Legislature topped the list, other key offices, including the Ministry of State for Presidential Affairs, the Office of the Vice President, and the Civil Service Agency, also spent hundreds of thousands beyond their official allocations.
A review of the FY 2025 budget documents by The Liberian Investigator reveal that an off budget expenditure of US$13,303,772 occurred after the approval of the FY 2024 recast budget, meaning they were not initially accounted for in the original spending framework. While some off-budget spending from January to August 2024 was incorporated into the recast budget in September, the additional expenditures post-recast remain a glaring financial irregularity.
Entities with Significant Off-Budget Spending
Among the government entities responsible for the spending, the National Legislature alone recorded an off-budget expenditure of US$4.07 million, despite an approved budget of US$59.8 million. Similarly, the Ministry of State for Presidential Affairs exceeded its budget by US$317,080, while the Office of the Vice President recorded an overrun of US$67,682.
Entities That Overspent Their Budget
| Entity | Budgeted Amount (USD) | Amount Overspent (USD) |
| TOTAL OFF BUDGET SPENDING | 13,303,772.00 | |
| National Legislature | 59,805,145.00 | 4,071,991.00 |
| National security Agency | 11,850,241.00 | 1,515,391.00 |
| Ministry of Finance & Dev. Planning | 140,967,648.00 | 1,385,868.00 |
| Paynesville City Corporation | 830,318.00 | 1,036,558.00 |
| Ministry of Justice | 41,432,064.00 | 1,002,126.00 |
| West African Examination Council | 4,075,624.00 | 607,125.00 |
| Governance Commission | 1,785,683.00 | 484,021.00 |
| Ministry of Mines and Energy | 3,358,702.00 | 372,756.00 |
| Ministry of State for Presidential Affairs | 12,495,025.00 | 317,080.00 |
| Ministry of Labor | 1,486,198.00 | 300,958.00 |
| PPCC | 1,245,095.00 | 284,374.00 |
| Ministry of Transport | 3,095,719.00 | 283,595.00 |
| Ministry of Youth and Sports | 5,791,796.00 | 278,413.00 |
| University of Liberia | 33,481,284.00 | 270,056.00 |
| Central Agriculture Research Institute | 1,334,652.00 | 239,530.00 |
| Civil Service Agency | 13,897,683.00 | 180,310.00 |
| Center for National Document and Archives | 715,707.00 | 170,969.00 |
| General Auditing Commission | 5,755,053.00 | 153,582.00 |
| Financial Intelligence Agency | 1,151,639.00 | 69,801.00 |
| Office of the Vice President | 3,714,121.00 | 67,682.00 |
| Ministry of Gender | 2,306,935.00 | 57,768.00 |
| Board of Tax Appeals | 393,758.00 | 38,300.00 |
| Environmental Protection Services | 1,894,466.00 | 24,061.00 |
| National Commission on Disabilities | 280,911.00 | 18,251.00 |
| General Services Agency | 1,586,026.00 | 17,530.00 |
| National Aids Commission | 583,707.00 | 17,222.00 |
| Agriculture and Industrial Training Bureau | 166,720.00 | 12,734.00 |
| Liberia Medical and Health Product Reg. Authority | 1,394,433.00 | 10,979.00 |
| Rural Renewable Energy Agency | 460,841.00 | 9,292.00 |
| National Lottery Authority | 230,489.00 | 5,449.00 |
At the time of the recast last Setempber, Speaker J. Fonati Koffa (embattled) called for significant changes to Liberia’s Public Financial Management (PFM) Law. Addressing the Plenary of the House of Representatives at the time, Koffa stated that the 55th Legislature inherited a flawed budget process that urgently required reform.
He said, “While we support this recast, we must commit to the Ways, Means, and Finance Committee that before submitting the next Budget, we will open up the process further. We need to redefine how the Budget is received, transmitted, and executed, ensuring accountability from the executive branch. Violations noted in this Budget recast cannot be accepted. Off-budget spending without adherence to the governing laws is illegal and unacceptable,” Koffa said.
He further mentioned the need to revise the PFM law, arguing that the current framework undermines legislative oversight by granting excessive power to the Minister of Finance. “The 2025 Budget cannot pass without adjustments to the PFM law that restores complete control to us over the budget process. We must not hold our country hostage to a system we did not create; we are responsible for reforming it,” he said.
Austerity Amid Aid Cuts
Meanwhile, the government has announced cost-cutting initiatives through the Ministry of Finance and Development Planning. These include restrictions on official travel, caps on fuel and communication allowances, and limitations on board fees for public officials.
At the same time, the Ministry of Finance has issued a directive to government spending entities, urging them to “prioritize their priorities” in light of persistent fiscal constraints.
In a recent memo signed by Finance Minister Augustine Kpehe Ngafuan and addressed to ministries, agencies, and commissions, the ministry stressed the importance of prudent financial management given the limited availability of resources.
“Scarcity of resources is a reality, and all heads or senior management of spending entities must not lose sight of this reality. You are advised to prioritize the priorities,” the memo stated.
The MFDP instructed all government spending entities to strictly adhere to their approved budgets for Fiscal Year 2025 and exercise fiscal prudence in what it describes as a “challenging fiscal environment.”
Additionally, the ministry reminded government institutions of the need for effective budget management.
“Please manage your budget well. Your budget is for the entire 12 months of 2025. You are strongly advised NOT to execute it as if it were a six-month or one-quarter budget. You are unlikely to receive any supplemental resources from the government if you exhaust your budget lines early,” the ministry warned.
The memo further emphasized that the budget is merely a projection until revenue is actually raised through the collective efforts of the Liberia Revenue Authority, the MFDP, and other stakeholders involved in revenue generation.
“This year’s budget stands at US$880.7 million, reflecting a 19.2% increase over last year’s recast budget of US$738.9 million. While this US$141.8 million increase is significant, it remains far below the more than US$2 billion in funding requests received from spending entities during the formulation of the 2025 Budget,” the ministry explained.
The memo, dated February 18, 2025, and signed by Minister Ngafuan, noted that despite being in just the second month of the fiscal year, the ministry has already received numerous requests from spending entities seeking additional funds for new priorities and unforeseen expenses not included in their initial budgets.
The ministry clarified that the “first source” of funding for such unforeseen expenditures should come from within the spending entity’s own budget.
It also highlighted that only US$3.26 million was approved as a contingency reserve fund in the 2025 Budget, serving as the only unallocated pool of funds from which the ministry can address unexpected financial demands.
“This amount is obviously minuscule compared to the sheer number of legitimate unforeseen spending pressures that arise during the year. Consequently, the MFDP, operating within the frameworks of the Public Financial Management and Budget Transfer laws, must make difficult decisions regarding reallocations to fund pressing, unforeseen expenditures,” the ministry stated.
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