By Seltue Karweaye

On October 30, 2024, the British Chancellor of the Exchequer will present the UK government’s annual budget to parliament for debate and scrutiny. Like every year, the Financial Times and other British broadsheets will be immersing themselves in the proposed budget, with each dedicating over 15 pages of a special supplement to analyze its intended and likely impacts on different categories of people, families, businesses, and the wider economy.

This level of serious attention to government budgets is vital because they determine how a government will allocate public funds. It is expected that budgets will enhance lives, improve society, and stimulate economic growth. Regrettably, this is not the case with government budgets in Liberia, as they violate universal norms of budgeting.

Firstly, budgets in Liberia are essentially meaningless when it comes to prioritization and implementation. Secondly, the budgeting process prioritizes private gain over public good, as politicians inflate and pad budgets to siphon public funds.

Let’s address the first point. Post-conflict budgets in Liberia offer minimal direct benefits to ordinary citizens. A thorough analysis of the budgets in the past eighteen (18) years would reveal minimal positive impact on people’s lives, businesses, society, and the economy. The Liberian government budget comprises capital and recurrent expenditures. Recurrent expenditure, which covers the cost of running the state, consistently accounts for the largest share (91.4% of the 2024 budget). The allocation for the Public Sector Investment Plan represents the second largest portion (8.6%) of the recast budget. This annual budgeting process has virtually no positive impact on the lives of the majority of Liberians.

The recent bribery scandal that has shaken the House of Representatives has exposed alarming allegations of budget padding. The heart of the rebellion against the Speaker of the House of Representatives, J. Fonati Koffa, revolves around accusations of blatant public corruption, as claimed by the majority bloc who are demanding the Speaker’s removal. According to the 2023 budget review, the office of the Deputy Speaker was granted US$1,541,025, yet the actual expenditure totaled US$4,038,687. This amount exceeded the approved budget by $2,936,159. The outturn report scrutinizes the real expenditure against the approved budget for the year and marks the fourth budget monitoring report of the fiscal year.

Disregard for budgeting guidelines across the three branches of government 

In the 2023 budget, the National Legislature was allocated $51,614,330, but the outturn report amounted to $67,963,832. This was $16,349,503 higher than the actual amount allocated to the National Legislature in the 2023 approved budget, which included a $1,520,854 allocation to the Office of the Senate Pro Tempore. However, the outturn report for the Senate Pro Tempore amounted to $3,351,821, which was $1,217,231 higher than the actual amount allotted to the Senate Pro Tempore’s office.

The Office of the President was allocated $3,844,132, but the outturn report amounted to $4,414,402, which was $570,270 higher than the actual amount allotted to the Office of the President in the 2023 approved budget. 

Similarly, the Vice President’s Office was allocated $3,791,842, but the outturn report amounted to $4,416,625, which was $624,783 higher than the actual amount allotted to the Vice President’s Office in the 2023 approved budget. 

In the same budget, the Ministry of State for Presidential Affairs was allocated $14,732,093, but the outturn report amounted to $20,478,159, which was $5,746,066 higher than the actual amount allotted to the Ministry of State for Presidential Affairs in the 2023 approved budget.

The Judiciary was allocated $18,453,234, but the outturn report amounted to $19,177,180, which was $723,946 higher than the actual amount allocated to the Judiciary.

In the Special National Budget from July 1, 2021, to December 31, 2021, the National Legislature was allocated $29,994,952, but the outturn report amounted to $40,116,438. This was $10,121,486 higher than the actual amount allotted to the National Legislature. The Office of the Pro Tempore was allocated $922,924, but the outturn report amounted to $1,812,159, which was $889,235 higher than what was allotted. The Office of the Speaker was allocated $1,057,776, but the outturn report amounted to $1,485,164, which was $427,388 higher than the actual amount. 

The Ministry of State for Presidential Affairs was allocated $4,940,685, but the outturn report amounted to $6,714,579. This was $1,773,894 higher than the actual amount allotted to the Ministry of State for Presidential Affairs in the 2021 approved special budget.

The Office of the President was allocated $412,400, but the outturn report amounted to $859,529, which was $447,129 higher than the actual amount allotted to the Office of the President in the 2021 Special approved budget. 

The Office of the Vice President was allocated $1,613,136, but the outturn report amounted to $1,830,938, which was $217,802 higher than the allotted amount.

The national budgets in Liberia have consistently failed to benefit the people, instead primarily benefiting a small group of political elites. For example, both former Presidents Sirleaf (Unity Party) and Weah (Coalition for Democratic Change) touted their budgets as significant achievements for the nation, highlighting initiatives like the Poverty Reduction Strategy and the Pro-Poor agendas. However, after a combined eighteen years in power, their budgets can be seen as a series of failures and unfulfilled promises.

In tagging his approved recast budget of US$738.86 million for Fiscal Year 2024 – ARREST Agenda, Joseph Boakai emphasizes the need for Liberians to seize opportunities in agriculture, roads, infrastructure development, rule of law, education sector reform, sanitation improvement, and unlocking the tourism sector’s potential. However, Boakai’s budget faces significant challenges. Firstly, it operates at a deficit, meaning heavy borrowing will be required for funding. Secondly, such a large budget raises concerns about potential waste, misappropriation, and embezzlement.

This leads to the issue of budget padding. Fonati Koffa, the embattled Speaker of the House of Representatives, expressed worries about the budget formulation process during an appearance on Spoon Talk. He disclosed that some members of the 54th Legislature on Joint Committee on Ways, Means, and Finance would convene in Room 1026 at Boulevard Palace  Hotel to discuss the budget. Koffa mentioned that during these discussions, various government ministries and agencies would be invited to review the initial budget allocations from the Ministry of Finance. However, he noted that some lawmakers would inform these officials of their intention to inflate the budget to secure kickbacks for themselves. Interestingly,  It is worth noting that Koffa, who previously held the position of Deputy Speaker in the 54th Legislature, chose not to acknowledge or raise these concerns to the public until the current efforts to remove him as Speaker of the 55th National Legislature.                      

In the 2024 budget, the National Legislature increased the budget by $738.8 million, allocating an additional $13.2 million for questionable Legislative Support Projects, in the name of an extra $51.451 million in revenue generation discovered by the Joint Committee on Ways, Means, and Finance  for the fiscal year 2024, despite the existing deficit. Additionally, $4.6 million was allocated for vehicle purchases for each member of the National Legislature. 

Speaker Koffa for his part, commended the Joint Committee on Ways, Means, and Finance for their thorough review of the budget. He emphasized, “We applaud the Committee on Ways, Means, and Finance for identifying an additional US$51 million.” 

Unfortunately, at the heart of budget padding lies the diversion of budget resources by the legislators for personal gain. Speaker Fonati Koffa has highlighted that legislators inflate budgets and collaborate with the MDAs to redirect the funds for their benefit and to combat this issue, we must collaborate to enhance the transparency and accessibility of the budget process for all stakeholders, including roadside sellers, not just public office holders. Additionally, we must openly hold accountable and penalize those who breach these regulations. By taking these steps, Liberia can safeguard public funds, ensure accountability, and cultivate a culture of integrity that is essential for the nation’s advancement and the well-being of its citizens.  

Let’s consider this: Despite 18 years of increasing annual budgets since Liberia’s return to democratic rule in 2006, the country still faces significant challenges in providing quality education, healthcare, electricity, and clean water for its citizens. With high youth unemployment and over 2.7 million Liberians living in multidimensional poverty, it is clear that there is room for improvement. It’s time for Liberia to reassess its budgeting priorities and invest in the critical areas needed for sustainable progress. It is imperative to address the detrimental impact of disregarding budgetary regulations in Liberia. I rest my pen.