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Govt overspends FY2024 recast budget by US$13m

by Lennart Dodoo
February 26, 2025
in News, UPDATE
Reading Time: 6 mins read
0
Govt overspends FY2024 recast budget by US$13m

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

EntityBudgeted Amount (USD)Amount Overspent (USD)
TOTAL OFF BUDGET SPENDING 13,303,772.00
National Legislature59,805,145.004,071,991.00
National security Agency11,850,241.001,515,391.00
Ministry of Finance & Dev. Planning140,967,648.001,385,868.00
Paynesville City Corporation830,318.001,036,558.00
Ministry of Justice41,432,064.001,002,126.00
West African Examination Council4,075,624.00607,125.00
Governance Commission1,785,683.00484,021.00
Ministry of Mines and Energy3,358,702.00372,756.00
Ministry of State for Presidential Affairs12,495,025.00317,080.00
Ministry of Labor1,486,198.00300,958.00
PPCC1,245,095.00284,374.00
Ministry of Transport3,095,719.00283,595.00
Ministry of Youth and Sports5,791,796.00278,413.00
University of Liberia33,481,284.00270,056.00
Central Agriculture Research Institute1,334,652.00239,530.00
Civil Service Agency13,897,683.00180,310.00
Center for National Document and Archives715,707.00170,969.00
General Auditing Commission5,755,053.00153,582.00
Financial Intelligence Agency1,151,639.0069,801.00
Office of the Vice President3,714,121.0067,682.00
Ministry of Gender2,306,935.0057,768.00
Board of Tax Appeals393,758.0038,300.00
Environmental Protection Services1,894,466.0024,061.00
National Commission on Disabilities280,911.0018,251.00
General Services Agency1,586,026.0017,530.00
National Aids Commission583,707.0017,222.00
Agriculture and Industrial Training Bureau166,720.0012,734.00
Liberia Medical and Health Product Reg. Authority1,394,433.0010,979.00
Rural Renewable Energy Agency460,841.009,292.00
National Lottery Authority230,489.005,449.00

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.

Tags: national budget
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Lennart Dodoo

Lennart Dodoo

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