MONROVIA – The Congress for Democratic Change (CDC) has strongly criticized the Government of Liberia’s draft Fiscal Year 2026 national budget, calling the US$1.211 billion proposal dangerously overambitious and riddled with speculative revenues. In a statement issued on Monday, November 17, 2025, the party called on the Legislature, the Speaker of the House, and Liberians at large to defend “fiscal prudence and economic stability” by demanding a wholesale revision of the draft.
At the heart of the CDC’s attack is their assessment that a significant portion of the budget rests on uncertain or non-recurring revenue sources, most notably a projected US$200 million signature bonus and asset recovery windfall from AML. Without that contingent income, the party argues, core domestic revenues fall sharply to around US$940 million, leaving the country exposed to major fiscal risks. CDC Chairman Atty. Janga A. Kowo emphasized that Liberia should not base spending on “fantasy revenue projections” but anchor the budget on confirmed, legally guaranteed income.
Kowo warned that the draft’s Public Sector Investment Program (PSIP) of US$281 million is particularly vulnerable, since much of it assumes the receipt of that US$200 million AML bonus. He described ambitious allocations to as-yet unready projects as a recipe for failure, noting that many have no clear design, procurement strategy, or implementation timeline. Without more concrete planning, he said, these projects may collapse or be delayed, depriving Liberians of meaningful development.
On the wage bill, the CDC expressed sharp concern. While the draft budget lists US$329 million for salaries, Kowo’s team estimates the real cost exceeds US$352 million once an additional US$26 million for “other compensation” is included. That figure, according to the CDC, amounts to nearly 38 percent of the country’s core domestic revenue, yet it fails to guarantee real wage increases for the lowest-paid civil servants, such as nurses, teachers, and security personnel. Kowo demanded public transparency, calling on the government to break down who earns this “other compensation” and to reclassify it under salaries rather than hiding it in general goods and services.
Debt servicing is another major concern. The CDC notes that the FY2026 proposal includes US$230 million for debt obligations, that is US$70 million more than the previous year. While the party lauds past efforts to secure domestic revenue increases, Kowo stressed that all assumptions about debt, interest, and liabilities must align with independent audits, such as those performed by the General Auditing Commission. He argued that without this transparency, future borrowing could spiral out of control.
According to Kowo, the danger of relying on speculative and contingent revenues could force the government into a mid‑year financial crisis. He warned that failure to realize such income would lead to emergency recasts, stalled development projects, and a sharp drop in donor confidence. Without prudent planning, he said, Liberia risks building its future on shaky financial ground, which he called “a budget built on sand.”
To address these risks, the CDC has presented a set of policy demands. First, the party insists that the FY2026 draft budget be returned to the Executive for a “conservative recast” rooted in confirmed revenues. Second, the CDC argues that speculative revenues should be excluded from the baseline and only added via supplementary appropriation once legally secured. Third, the party demands that the US$200 million AML windfall, when received, be ring-fenced strictly for capital projects, not recurrent spending.
Kowo also called for greater accountability in project planning. He proposed that the Ministry of Finance release a PSIP “readiness report” within 30 days, detailing each capital project’s cost, financing sources, and timelines. He said this report would guard against “white elephant” investments and ensure value for money. Additionally, he urged the government to commission an independent debt sustainability and fiscal risk assessment within 45 days, to prevent excessive borrowing and reckless financial assumptions.
On civil service compensation, the CDC wants the government to better link payroll growth to verifiable revenue gains. Kowo was blunt: the government must stop promising wage increases just for political expediency; salary hikes must be sustainable, transparent, and tied to real fiscal capacity. He noted that under a previous CDC administration, approximately US$5 million had been earmarked for underpaid professionals, but that allocation was removed when the budget was redrafted, a move he decried as short-sighted and unfair.
Revenue mobilization is another key plank in the CDC’s reform package. They believe ongoing reforms at the Liberia Revenue Authority (LRA) should be accelerated, with quarterly progress reports published and future disbursements tied to reform milestones. Tying budget release to performance, Kowo argued, would strengthen public trust, reduce donor dependency, and improve revenue collection.
In a statement, Kowo declared, “Passing a budget built on sand is not patriotism; it is peril.” He warned that without urgent corrective measures, Liberia could plunge into a fiscal crisis that threatens not just its development agenda but its hard-won gains in credibility with international partners. He appealed to lawmakers, civil society, and global partners to demand a more responsible, realistic budget.
The CDC’s posture comes amid mounting public scrutiny of the Boakai administration’s fiscal management. Rep. Dorwohn Gleekia, chair of the House Committee on Ways, Means and Finance, has also raised red flags about revenue leakages and unrealistic budget ceilings in an earlier budget review session. Some analysts see the CDC’s intervention as calculated: Kowo and his team are positioning themselves as defenders of fiscal discipline, even as they challenge the Unity Party on multiple fronts.
This is not the first time Kowo has taken a combative stance. Earlier this year, he publicly accused Police Inspector General Gregory Coleman of abuse after a confrontation with security officers while visiting CDC lawmakers. In another high-profile moment, he refused to back down after being blocked from entering the Temple of Justice during the Koffa arson trial, calling the move a violation of his rights.
Some observers believe the CDC’s critique of the FY2026 budget is also politically motivated, given the party’s opposition status and its history of tension with the current government. Just last month, the party condemned what it called “political witch-hunts” and selective prosecutions by the Unity Party, framing fiscal oversight as part of a broader resistance strategy.
Nevertheless, Kowo’s arguments resonate with a broader concern among Liberians about debt sustainability, fiscal transparency, and how the government prioritizes resources. His call for ring-fencing one-off windfalls echoes the warnings of civil society groups and economists who argue that short-term gains should not fuel long-term recurrent costs.
As debate kicks off in the Legislature, all eyes will be on how seriously the House and Senate take the CDC’s demands. Will lawmakers press for the conservative recast Kowo calls for? Will the IMF, donors, and development partners back the CDC’s push for transparent revenue assumptions and independent debt risk assessments?
For his part, Kowo says the CDC is ready to work with the Executive, civil society, and international partners, but only if the budget is changed in meaningful ways. “We stand ready to build Liberia on solid ground,” he said. “But we will not support a budget that risks our future for the sake of political vanity.”
The controversy around the draft FY2026 budget reveals more than a political debate; it cuts to the heart of Liberia’s fiscal survival, democratic accountability, and long-term development trajectory. The coming weeks may well determine whether this budget is a foundation for growth or a gamble that could unravel years of economic progress.
