Liberia’s 2025 Budget and the Dance of the Traditional Devil
By Seltue Karweaye Sr.
Traditional devil performances in Liberia are known for their distinctive and vibrant characteristics. The dancers fluidly move back and forth, leap exuberantly up and down, and create an enchanting yet chaotic atmosphere that captivates onlookers. These lively displays are rich in cultural significance, often blending storytelling, folklore, and community engagement. However, once the performances conclude, not much has changed, as both the dancers and the spectators understand one fundamental truth: it is all just drama.
If there is a metaphor that aptly captures the challenges surrounding Liberia’s budget this year, it might be likened to the intricate dance of the traditional devil—navigating between the Presidency and the National Legislature, yet falling short in providing meaningful policies and programs aimed at job creation, economic stimulation, and poverty reduction. The Liberian public, who are left as little more than bewildered spectators, are confronted with a hefty budget of about US$880.66 million for these meaningless efforts that yield no real benefit.
On November 18, 2024, Liberians breathed a sigh of relief as President Joseph Nyuma Boakai, Sr. submitted the Fiscal Year 2025 Draft National Budget to the National Legislature. The proposed budget totals an ambitious $851.8 million, reflecting a 15.3% increase over the 2024 Recast Budget of $738.9 million.
Just days after the president’s submission, the Majority bloc of the House of Representatives and the Senate approved the total expenditures of $880.66 million, marking it the highest budget in Liberia’s history. This budget includes the Medium Term Expenditure Framework (MTEF), among other provisions.
On Thursday, February 20, the approved 2025 National Budget was officially published by the Ministry of Finance and Development Planning, one month after its approval. In our analysis of the budget, we must critically evaluate whether it, like its predecessors, takes meaningful steps to revitalize Liberia’s struggling economy and set it on a trajectory of growth and sustainable development. What concrete provisions does it offer to the millions of unemployed Liberians who are grappling with hopelessness for a brighter future? How does it plan to uplift the 51% of our fellow citizens—approximately 2.3 million individuals—who are trapped in the depths of absolute poverty?
The approved budget for 2025 projects has a total expenditure of approximately US$880.66 million. Within this budget, recurrent expenditures are earmarked at US$773.95 million, which represents around 87.9% of the entire budget allocation. This recurrent expenditure encompasses a variety of costs, including debt servicing that totals US$153 million (17.4% of the overall budget), high salaries and substantial benefits for public officials, as well as significant expenditures on fuel, extravagant foreign travel, luxury vehicles, entertainment, meals, home generators, and daily subsistence allowances (DSA). In addition, there are allocations for furniture allowances, scratch cards, foreign medical care, housing allowances, and private jet travel, along with expenses related to consultancies, workshops, and constituency visits.
On the other hand, capital expenditures are projected at approximately US$106.72 million, accounting for just 12.9% of the overall budget. This limited allocation indicates a worrying trend: a reduced investment in vital infrastructure projects and essential services such as road construction, bridge repairs, educational improvements, healthcare enhancement, and electricity provision.
For instance, despite the persistent claims that the cost of governance is on the decline, one would expect to see figures more in line with the internationally accepted standard of 25% for recurrent expenditure. Instead, the recurrent budget shockingly stands at approximately 87.9%, a staggering amount that is over six times greater than the allocations for capital expenditure. Even more concerning, the 2025 recurrent figures indicate a troubling trend, with an increase of 15.3% (US$102.52 million) compared to 2024, contradicting any notions of fiscal restraint.
To gain a clearer perspective on the outcomes of the 2024 budget, it is important to thoughtfully assess its performance, particularly given that the economic team remains unchanged. While there were many hopes for improved timelines, it appears that the execution of the 2025 budget may encounter a similar delayed start as experienced with the 2024 budget. The implementation process for the 2024 budget has been marked by several challenges; by the mid-year report, the finance ministry indicated that only 43.5% of the budget had been executed. Furthermore, the absence of a comprehensive review of the 2024 budget’s performance over all four quarters raises important considerations regarding accountability and transparency in our governance.
After reviewing the picture above, it is clear that, without significant government action, the implementation of the 2025 capital budget is likely to mirror that of 2024, leading to a continued expansion of the nation’s infrastructure deficit. It is crucial to establish checks and balances to ensure that Ministries, Departments, and Agencies (MDAs) effectively utilize the capital funds allocated to them. One would hope that the anticipated Presidential Directive regarding the New National Performance Management and Compliance System will play a pivotal role in strengthening these processes and fostering accountability.
An in-depth analysis of key ministries has uncovered a concerning budget structure. The health sector is allocated $81.8 million, which constitutes approximately 10.4% of the overall national budget. Alarmingly, this entire sum is earmarked for recurrent expenditure, leaving little room for essential health initiatives. The recent decision by President Donald Trump to withdraw the United States from the World Health Organization significantly endangers funding for crucial global health programs, particularly those targeting HIV/AIDS and tuberculosis in regions like Liberia.
Public health in Liberia is grappling with severe challenges, including the persistent threats of HIV/AIDS, tuberculosis, and malaria. Malaria is especially distressing, with around 1.9 million cases reported in 2021. This resulted in an incidence rate of 358.5 cases per 1,000 inhabitants and nearly 3,548 deaths that year. The Malaria Indicator Survey of 2022 indicates that the prevalence of malaria among children under the age of five is a startling 10%. The HIV epidemic is equally alarming; prevalence rates among individuals aged 15 to 49 vary between 1.5% and 2.1%. In 2021 alone, there were 1,100 reported deaths related to HIV/AIDS, and the disease left approximately 35,000 children between the ages of 0 and 17 orphaned. Given these critical health issues, one must question how a progressive government can justify allocating a mere 10.4% of the budget to bolster the health sector.
In the realm of education, $119.72 million has been designated, which represents 13.6% of the national budget. Unfortunately, as with health, a considerable portion of this budget is mismanaged, with the entirety consumed by recurrent expenditures, such as salaries and operational costs, rather than being invested in infrastructure or educational resources. According to UNICEF, an alarming 20% of children of primary school age (6-14 years) are not attending school. Furthermore, only about 48.3% of Liberia’s population aged 15 and older can read and write. This lack of funding has dire consequences, as it limits the ability to recruit qualified teachers, construct new schools, and ultimately improve literacy rates across the country. Without a significant reallocation of resources, the future of education in Liberia remains precarious.
The agriculture sector has received an allocation of approximately US$16.75 million, representing merely 1.9% of the overall budget. This level of funding is insufficient to implement the targeted interventions necessary to revitalize a sector that once served as a vital source of employment for many Liberians but now provides jobs for only about 40% of the workforce.
To truly enhance agricultural productivity and sustainability, it is essential to invest in several key areas. This includes the acquisition of high-quality seedlings that are resilient to climate impacts, the provision of effective agrochemicals to protect crops from pests and diseases, and the availability of fertilizers to improve soil fertility.
Additionally, expanding extension services will ensure that farmers receive the training and support they need to adopt modern farming techniques and best practices. Investing in modern farming equipment will increase efficiency and reduce the labor burden on farmers. Finally, developing robust farm-to-market infrastructure, such as roads and storage facilities, is critical to facilitate the timely and cost-effective transportation of produce to markets, thereby reducing post-harvest losses and improving farmers’ income.
Ironically, a close examination of the budget for the Ministry of State and Presidential Affairs—totaling approximately US$15,689,817—reveals that the lofty rhetoric surrounding the fight against corruption is largely superficial. Of this substantial budget, a mere $3.1 million is earmarked for the Liberia Anti-Corruption Commission, which is far from sufficient given the scale of the corruption challenges the country faces.
Moreover, the allocation for the National Disaster Management Agency is particularly alarming; with just about US$746,887, the agency is severely underfunded. This inadequate financing significantly hampers its ability to respond effectively to emergencies. As a result, when disasters occur and the agency finally mobilizes, it often finds itself ill-equipped and late to provide the necessary aid, leading to preventable suffering and loss.
Next week, this column will delve deeper into the budgetary provisions for National Legislatures to shed light on their implications. As it currently stands, the 2025 budget resembles a performance—a “dance of the traditional devil”—characterized by confusing movements that go forward and backward, up and down, while creating a cloud of dust. Meanwhile, the nation grapples with escalating poverty rates, concerning declines in human development indicators, severe infrastructure deficiencies, and alarmingly high levels of youth unemployment. These persistent issues underscore the disconnect between government budgeting and the pressing needs of its citizens. I rest my pen.
