—As Speaker Reiterates Reforms in Budget Process
IPNEWS: Even though members of the House of Representatives passed the 2024 Recast Budget late Friday, September 20, 2024, however, there remain contestable issues which might undermine the smooth passage of subsequent budget by the 55th Legislature.
The recast budget passed at a little over US$48-million, as an austerity measure to offset challenges confronting the expenditure envelope. This amount accounts for the projected revenue under performance of over US$23-million, while the balance of US$18-million plus is intended for reclassification to address new priority programs.
Minutes after the passage, House’s Speaker Cllr. J. Fonati Koffa sounded a warning that Liberia’s budget process requires significant reforms which inherited challenges that must be jointly addressed.
Speaker Koffa emphasized that there were complicated flaws with the budget process which undercuts the principles of accountability and transparency, stressing that lawmakers must be amenable to their constituents especially in how their revenues are expended.
The Grand Kru County District No. 2 Representative, called on members of the Committee on Ways, Means, and Finance to proactively prepare for the 2025 National Budget, urging them to prepare to take a structurer approach regarding how budgets are received, transmitted, and executed, stressing that accountability from the executive branch is important.
“The violations noted in the recast budget cannot be tolerated. Off-budget spending must adhere strictly to legal guidelines, and the House cannot grant waivers for such infractions,” he asserted.
Speaker Koffa highlighted the importance of ensuring that the budget reflects accountability and transparency in financial management. He urged the Ways, Means, and Finance Committee to re-evaluate the Public Financial Management (PFM) Law, asserting that the current structure has allowed an unelected official, the finance minister, to shift funds at his discretion—an authority that must be curtailed.
“Any passage of the 2025 National Budget must involve necessary adjustments and amendments to the PFM Law,” he stated.
Furthermore, Speaker Koffa reminded his colleagues that despite differences, the Legislature must not jeopardize the nation’s progress.
Some of the contestable issues reached by both Senate and House is the desire of the Senate to carrying over of setting portion of the recast budget to other expending entities and while the House of Representatives seeks to have direct oversight over certain portion of the same recast budget.
The contestable issues of the House of Representative desire to move $18.2 million to cover the budgetary allocation of health and education, while the Senate views the movement from a different perspective casting doubts that it might just offset initial projects planned for earlier in the national budget.
Another contestable issue is the desire by the Senate to shift $5.2 million to restore health and education.
The current recast budget begins necessary to meet the benchmark at fourth by the International Monetary Fund (IMF).
With the passage of recast, now puts Liberia on the road for greater international financial support.
