Published: November 21, 2024
Monrovia – Former Finance Minister David Farhat has cast doubt on Liberia’s ability to generate the US$851.8 million proposed in the 2025 Draft National Budget, citing high customs duties and revenue leaks to neighboring countries.
In an exclusive interview with The Liberian Investigator on Wednesday, Mr. Farhat raised concerns over high customs duties at entry points, particularly the Free Port of Monrovia. He noted that the steep costs are driving businesses to neighboring countries for imports and exports, resulting in significant revenue losses for Liberia.
“When I was Finance Minister, we could generate the needed resources because surrounding countries relied on Liberia for import and export activities, which helped stabilize the economy,” Farhat remarked.
Earlier this week, the Executive Branch submitted the 2025 Draft National Budget to the National Legislature. The budget outlines appropriations to support the government’s ARREST Agenda for Inclusive Development, address debt service obligations, and meet other national priorities. President Joseph Boakai urged lawmakers to consider and approve the budget promptly to enable effective implementation starting in January 2025.
The submission complies with Section 17.1 of the 2019 Amendment and Restatement of the Public Financial Management Act of 2009. The budget also includes a significant policy measure: increasing the minimum monthly salary for civil servants to US$150, in alignment with the Decent Work Act of 2015. Mr. Farhat commended this initiative, calling it a positive step toward improving the welfare of public sector employees.
However, Farhat expressed concern that a large portion of Liberia’s budget—both in the past and present—is allocated to salary payments, leaving limited resources for other critical needs. He urged the Liberia Revenue Authority (LRA) to adopt strategies that would help meet the ambitious revenue targets outlined in the budget.
On the ongoing political crisis in the House of Representatives, Farhat criticized lawmakers for holding parallel sessions under separate factions—one led by Speaker J. Fonati Koffa and the other under the self-styled “majority bloc.” He described the situation as a setback for Liberia’s democratic and legislative progress.
“As the oldest republic in Africa, Liberia should rise above such divisions. Lawmakers must resolve their differences and focus on serving the people effectively,” Farhat asserted.
The veteran statesman urged members of the Lower House to prioritize dialogue and unity, emphasizing that the nation’s progress depends on a cohesive and functional legislature.
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