MONROVIA — The Government of Liberia has adopted two significant financial regulations aimed at improving the management of public resources and advancing local governance. This move, announced following an emergency Cabinet meeting on Friday, September 13, is seen as a major step toward fiscal transparency and decentralization.
The amended Public Financial Management (PFM) Regulations and the Revenue Sharing Regulations (RSR) are expected to reshape how national and local governments manage revenues and expenditures.
The updated PFM Regulations serve as the operational arm of the Amended PFM Law of 2019. These changes introduce structural reforms that could enhance financial governance and oversight.
One of the key amendments is the formal separation of roles between the Comptroller and Accountant General and the Department of Fiscal Affairs. By delineating these responsibilities, the government aims to reduce conflicts of interest and ensure greater financial accountability.
Additionally, the regulations delegate more fiscal responsibilities to local governments, empowering them to oversee revenue generation and manage public service spending. This aligns with the government’s broader decentralization goals, which aim to improve service delivery at local levels while fostering accountability in regional governance.
Equally significant is the adoption of the Revenue Sharing Regulations, which provide a framework for the implementation of the Revenue Sharing Law of 2021. This law had been stalled due to the absence of these regulatory instruments until now.
Under the new regulations, local governments will have increased access to revenues generated from public services within their jurisdictions. The regulations also stipulate that revenues from natural resources—such as mining and forestry—will be shared between central and local authorities. According to an Executive Mansion release, the goal is to give local communities a stake in the resources extracted from their regions.
A portion of real estate taxes and other local fees will also be allocated to local governments, enabling them to invest in infrastructure and public services.
These measures are part of Liberia’s broader push for fiscal decentralization, long outlined in the Local Government Act. By placing more control in the hands of local authorities, the government hopes to promote economic growth at the grassroots level.
President Joseph Boakai, speaking on the adoption of the regulations, stated: “These financial management tools are essential in guaranteeing fiscal responsibility and equitable revenue sharing. This is a crucial part of my administration’s commitment to transparent governance across all levels.”
The adoption of these regulations is a milestone for Liberia’s public financial management reform efforts, with the potential to improve the efficiency and fairness of resource distribution between central and local governments.
With these frameworks now in place, observers are keen to see how effectively the new regulations will be implemented and whether they will lead to improved governance and economic empowerment for local communities.
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