Corruption: The Ongoing Erosion of Budgeting Standards in Liberia

By Seltue Karweaye, MPA, MBA

Budgets are critical documents that outline how a government allocates public funds, with the overarching goal of enhancing citizens’ lives, strengthening societal structures, and fostering economic development. However, in Liberia, government budgets fall woefully short of these aspirations for two main reasons.

Firstly, the budgets in Liberia are largely ineffective when it comes to prioritizing and implementing initiatives that directly benefit the populace. An in-depth examination of our post-conflict L budget reveals a startling lack of provisions aimed specifically at improving the lives of ordinary Liberians. 

The government budget is typically divided into two main categories:  recurrent expenditures and capital expenditures. Remarkably, recurrent expenditures, which encompass the ongoing costs of running government operations—such as salaries, travel, allowances, fuel, lubricants f,  vehicle purchases, office supplies, and utilities—constitute an overwhelming 87.9% of the 2025 budget. In stark contrast, capital expenditure, which is crucial for long-term development projects like infrastructure and education, takes up only 12.9% of the budget. Meanwhile, debt servicing, which refers to the payments made to cover past obligations, accounts for another significant portion at 20.3%. This recurring pattern has established a cycle where the budget is largely a formality that fails to yield tangible benefits for the majority of citizens.

Secondly, the budgeting process often prioritizes the interests of a select few over the collective needs of the public. Politicians frequently engage in the practice of inflating and padding budgets with the intent of diverting public funds for personal gain. This unethical behavior undermines the very purpose of budgeting, as it shifts resources away from essential services like education, healthcare, and infrastructure development, further entrenching inequality and limiting growth opportunities.

It is worth reflecting on the current state of affairs in Liberia. Despite 18 years of gradually increasing annual budgets since the return to civil rule in 2006, the country continues to face significant challenges in providing quality education, healthcare services, reliable electricity, and access to clean water for many of its citizens. According to the Ministry of Labor’s 2024 Youth Unemployment Statistics Report, youth unemployment remains a concern at approximately 85%, and over 2.7 million Liberians (52.3%) are classified as multidimensionally poor. 

Interestingly, among the top ten universities in Africa in 2025, South Africa features seven institutions, while Liberia does not have any universities represented. This raises important questions about educational standards and the factors contributing to the notable success of other countries in this regard. Development typically requires a robust education system, a strong healthcare framework, effective human capital development, and reliable utilities. 

This highlights a critical issue in Liberia’s budgeting process: the ongoing disregard for established budgeting norms. In the 2024 budget, the National Legislature was initially allocated a total of $59.8 million. However, according to the outturn report, the actual amount spent reached $63.8 million. This discrepancy highlights a troubling $4 million overspend compared to the figures approved in the budget.

For the Ministry of State for Presidential Affairs, the approved budget was set at $12,495,025. Nevertheless, the outturn report revealed expenditures totaling $12,812,105. This represents an additional expenditure of $317,080 above the allocated amount, raising concerns about budget adherence and financial oversight within this critical ministry.

The Ministry of Finance and Development Planning had a substantial allocation of $140,967,648 for the fiscal year. Yet, the outturn report recorded actual spending of $142,353,516, resulting in an excess of $1,385,868. This slight overage raises questions about the effectiveness of budgeting controls and the ministry’s fiscal discipline.

The National Security Agency faced similar issues. Initially allocated $9,489,116, the agency’s outturn report indicated actual spending of $11,119,325—an alarming $1,630,209 over the approved budget allocation. This raises red flags about budgetary oversight, especially given the importance of national security funding.

The Paynesville City Corporation, responsible for local governance and infrastructure, was allocated $830,318. However, the outturn report highlighted that the city spent $1,866,876—an astonishing overage of $1,036,558. This substantial increase suggests a potential lack of financial planning and oversight at the municipal level.

The University of Liberia, a key institution in the nation’s educational landscape, received an allocation of $33,481,284. However,  the outturn report showed that the university spent $33,751,340, leading to an excess of $270,056 over its approved budget. This raises concerns about budget management in a sector that is pivotal for Liberia’s future development. The West African Examinations Council, which plays a crucial role in overseeing educational assessments, was allocated $4,075,624. However, their reported expenditures reached $4,682,749—resulting in an overspend of $607,125.

In the 2024 approved budget, the General Auditing Commission was allocated a sum of $5,755,053. However, the outturn report revealed that the Commission spent $5,908,635, resulting in an overspend of $153,582 compared to the approved budget. 

The Governance Commission received a significantly larger allocation of $1,785,683 in the 2024 budget. Nonetheless, the outturn report disclosed that their expenditures reached $2,269,704. This overshoot of $484,021 indicates that the Commission may have undertaken more extensive initiatives or projects than initially planned, leading to a revised requirement for resources.

In a similar vein, the Public Procurement and Concessions Commission was allocated $1,242,095. Yet, their reported outturn expenditure stood at $1,529,469, which signifies an increase of $329,507 beyond the allocated budget. This suggests that the Commission encountered additional procurement challenges or opportunities that necessitated increased spending.

For the Center for National Documents, Records, and Archives, the approved budget allocated $715,707, while the actual expenses amounted to $886,676. This unplanned expenditure of $171,969 may be attributed to unforeseen archival projects or enhancements in their record-keeping capabilities that required more financial resources than originally anticipated.

The Civil Service Agency had a substantial allocation of $13,897,683 in the 2024 budget. However, the outturn report reflected actual spending of $14,077,993. This discrepancy of $180,310 underscores potential staffing increases or expanded services that the Agency provided during the fiscal period, thereby necessitating additional funds.

Moreover, the National and County Plan Development Project, which operates under the Ministry of Finance and Development Planning, started with a budget allocation of $725,000. Upon reviewing the outturn report, it was found that the project’s actual costs reached $886,587, resulting in an excess of $162,587. This suggests that the project may have encountered unforeseen challenges or scope expansions that required additional funding to ensure its successful implementation.

Lastly, the K-Power Electricity Project, which falls under the Ministry of Justice, was initially allocated $424,000. The outturn report, however, indicated that the project only expended $352,164. Notably, a confirmed report has emerged revealing that K-Power was compensated despite failing to fulfill any work obligations. This raises significant concerns about accountability and the effective monitoring of project deliverables within the ministry.

The lack of detail and transparency in Liberia’s budget allocations raises serious concerns. The citizens are left in the dark about how government funds will be utilized, making it impossible for them to track expenditures or ensure that resources are allocated appropriately. This opacity creates significant opportunities for mismanagement and misappropriation of funds, as there is scant accountability or oversight regarding financial decisions.

Moreover, Liberian legislators are among the highest-paid lawmakers in West Africa, yet they are also perceived as some of the most corrupt. This combination leads to a troubling scenario in which these officials often fail to fulfill their oversight responsibilities for the Ministries, Departments, and Agencies (MDAs). Many legislators engage in practices that violate established budget norms, thus perpetuating a cycle of neglect and corruption. This situation reflects the deep-seated issues within Liberia’s governance system, which is characterized by a lack of transparency and accountability at all levels of governance.

The ramifications of these issues extend far beyond the halls of government; they significantly impact the lives of ordinary Liberians. The current budgeting practices consistently fall short of addressing the critical needs and aspirations of the populace, leaving many without access to essential services, infrastructure, and support systems necessary for improving their quality of life. This persistent misalignment underscores a chronic problem of budgetary violations that plague various sectors in the country. 

To address these pressing concerns, there is an urgent need for comprehensive reforms that enforce stricter compliance with budgeting processes and enhance financial accountability mechanisms. Only through a commitment to uphold the rule of law and enforce transparency can Liberia hope to rectify these systemic issues and foster a more equitable and just society for all its citizens. I rest my pen.