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Liberia: Budget 2025 – A Nation in Crisis, Burdened by Expensive Leaders

Seltue Karweaye Sr.

The escalating cost of governance has emerged as a pressing national concern in Liberia. Currently, the government allocates an estimated 35.8% of its total revenue to support less than 1% of the population employed as public servants. This disproportionate spending is evident in the recurrent expenditure, which constitutes over 87.9% of the national budget. As a result, the nation invests significantly more resources in sustaining governmental operations than in enhancing the quality of life for its citizens or developing essential infrastructure.

A closer examination of the National Legislature highlights the extent of this financial imbalance. Over recent years, the annual budget for the Legislature has fluctuated between $44.3 million and $67.9 million. In 2024, asset declarations from Senators Dillion and Sogbie, submitted to the Liberia Anti-Corruption Commission, reveal that each Senator receives a substantial annual gross salary of $129,992, translating to about $10,832 monthly. Meanwhile, a 2024 salary structure document obtained for the House of Representatives indicates that each representative earns a gross annual salary of $105,000, or approximately $8,810 monthly. In addition to their base salaries, Representatives receive a generous gas allowance of $26,700 annually, which amounts to about $2,225 per month.

Moreover, the compensation package for lawmakers extends beyond these figures. They are allotted funds to employ two security personnel for their protection, along with financial support for household staff such as a yard boy, a driver, a steward, and a page. This comprehensive arrangement raises concerns about the transparency and accountability of the legislators’ total compensation, particularly as considerable ambiguity surrounds the value of the hidden benefits and perks that members of the legislature may receive. As citizens grapple with poor infrastructure and limited public services, the government’s financial priorities starkly contrast with the pressing needs of the population.

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In light of recent developments, this column will embark on a comprehensive sectoral analysis of the approved 2025 budget over the next few weeks. Our primary goal is to provide clear insights into the specific provisions laid out in the budget, aiming to inform all stakeholders—from government officials to citizens—about its implications.

We seek to identify potential areas for reducing wasteful expenditures, scrutinize prioritized spending, and eliminate inefficiencies, particularly as we face substantial reductions in funding from USAID and other U.S.-based financial programs. These cuts are poised to impact various sectors significantly, and we hope that the Liberia government will leverage this budget to truly benefit its citizens.

To kick off our analysis, we will closely examine the anticipated revenue profile for 2025, dissecting the sources of income and the challenges associated with revenue generation. Following this, we will spotlight the much-discussed expenditures allocated to the National Legislature, exploring their implications for national safety and resource allocation, and identifying any areas for improvement. 

The Liberian government has set an ambitious goal for the fiscal year 2025, projecting to generate approximately US$861.8 million in revenue. This revenue is expected to come from several key sources, including personal income taxes, corporate taxes, customs duties, and value-added tax. Each of these components plays a crucial role in the country’s economic framework and contributes to the overall financial health of the nation. However, the government is planning to spend more than it anticipates receiving. Specifically, the budget outlines total expenditures of US$880.6 million for the year, which results in a projected deficit of around US$18.8 million. This shortfall raises important questions about funding. 

To cover this deficit, the government intends to rely on contingent revenue. This term refers to funds that the government hopes to secure in the future, but which hinge on certain conditions or events being realized. These income streams are uncertain and cannot be guaranteed, as they will only be recorded in the government’s accounts once the preconditions for their collection are satisfied. In essence, the Liberian government’s strategy for addressing the budget shortfall involves borrowing. Additionally, it is notable that the current budget does not allocate any funds for transfer to the National Reserves, an important aspect of financial planning. 

For the citizens of Liberia, these details are crucial to understand, as they reflect the fiscal health and governance of the nation. Clarity on these budgetary decisions is essential for public awareness, enabling the National Legislature to make informed choices and hold the government accountable for fiscal responsibility.

What are the broader implications of the information provided regarding our financial strategies? Specifically, how does the proposal to borrow an additional millions of dollars align with the administration’s stated goal of reducing our borrowing, which currently stands at a significant 58.8% of our Gross Domestic Product (GDP)? Furthermore, what insights does the projected medium-term expenditure framework offer about our revenue generation and spending habits? Are these economic patterns in harmony with the aspirations of the Liberian populace for a government that is not only smaller and less expensive but also more efficient in its operations? We encourage our readers to ponder these critical questions as they review the financial data presented here.

Looking closely at the approved 2025 budget, it becomes evident that a substantial $44.3 million has been earmarked for the National Legislature. Within this allocation, the budget for the Office of Speaker of the House of Representatives is US$1.5 million. This figure includes the Speaker’s gross annual salary of $245,540, translating to approximately $20,461.67 monthly. In comparison, the budget for the Deputy Speaker is set at US$1.2 million, with a gross annual salary of $208,940, which amounts to around $17,411.67 per month.

Additionally, in the approved 2025 budget, the Office of the Pro Tempore is allocated a budget of US$1.2 million, accompanied by a gross annual salary of $256,203, approximately $21,350 per month. Senators in the Liberian Senate are entitled to a basic annual salary of $110,642 each, approximately $9,220, while members of the House of Representatives receive a slightly lower basic salary of $102,830, approximately US$8,569. Moreover, both Senators and Representatives are afforded additional funding for various support roles, including security personnel, yard staff, drivers, cooks, and other necessary supporting staff to help carry out their duties effectively.

An inspection of the funding provisions for the salaries and allowances of the National Legislature reveals a striking increase of roughly US$9 million from the budgetary levels recorded in 2007, bringing the total to US$44.3 million in 2025. This notable increase cannot be attributed merely to the routine annual salary increments that occur over time. Rather, it raises concerns regarding the administration’s commitment to reducing the overall cost of governance and suggests that underlying factors may be influencing this substantial fiscal growth.

Are our leaders not overly costly in a country that has been identified as the eighth poorest in the world? With so many pressing issues facing us, such as the urgent need for well-maintained roads that facilitate safe travel, reliable electricity that powers our homes and businesses, and quality schools that provide a solid education for our children, we must ask whether they truly listen to our concerns. Our healthcare system is in dire need of improvement, with hospitals that should be accessible and affordable for all. Additionally, affordable public transportation is crucial for daily commuting, and we desperately need job opportunities that can empower our youth and help them build a better future. Are our leaders paying attention to these critical needs, or are they detached from the challenges that we face daily? In next week’s column, I will shine a spotlight on the national security sector, a significant issue that has long been ignored—an elephant in the room that seems untouchable. It’s time for us to demand accountability and action! I rest my pen. 

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