MONROVIA, LIBERIA – The Minister of Finance and Development Planning, Hon. Augustine Kpehe Ngafuan, has introduced Liberia’s draft national budget for Fiscal Year 2025, totaling $851.8 million. This proposed budget, a 15.3% increase from the previous fiscal year, underscores the government’s focus on addressing national challenges and advancing long-term development goals.
Speaking at a press briefing on Tuesday, November 19, 2024, Minister Ngafuan outlined the budget’s priorities, which include infrastructure, education, healthcare, agriculture, and wage adjustments for government employees. Covering the period from January 1 to December 31, 2025, the financial plan is built on $833 million in primary revenue and $18.8 million in contingent funds, with domestic revenue sources contributing 93%.
The revenue streams are derived from taxes on income, profits, goods, and services, supplemented by $60 million in external funding from partners like the World Bank and the European Union—a 50% increase from last year. Minister Ngafuan also projected a 5.8% economic growth rate for 2025, driven by robust performances in mining, agriculture, manufacturing, and services. Notably, agriculture and fisheries are expected to contribute 29% of GDP, while the services sector is projected to account for 38%.
The budget includes a 45% increase in the Public Sector Investment Program (PSIP), which rises from $67.4 million in FY2024 to $98 million in FY2025. This allocation supports the government’s ARREST Agenda for Inclusive Development (AAID), a five-year framework aimed at nationwide growth. Key infrastructure projects include $52.9 million for road rehabilitation and transportation links in underserved areas.
The agriculture sector will receive $7 million to strengthen its value chain through research, extension services, and processing facilities. Meanwhile, the education sector is set to benefit from nearly $7 million for school expansion, renovations, and advancements in the Digital Transformation Program. Healthcare improvements include $14 million for hospital upgrades and expanded drug revolving funds for community pharmacies.
Wage adjustments form a cornerstone of the FY2025 budget, with $16 million allocated to raise salaries for approximately 28,200 government workers. These adjustments comply with the Decent Work Act of 2015, ensuring a minimum wage of $150 for public sector employees. The budget also addresses the integration of volunteer workers in education and health into the formal payroll. Nurses, midwives, and physician assistants will receive monthly salary top-ups of $25 to $50, depending on their roles.
For the first time, Liberia National Police officers will receive insurance coverage, fulfilling the requirements of the National Security Act of 2015 and enhancing their welfare in challenging service conditions.
Despite its ambitious goals, the FY2025 budget faces challenges, as total funding requests from ministries and agencies exceed $2 billion. To bridge this gap, the government plans to enhance revenue collection through stricter enforcement by the Liberia Revenue Authority (LRA) and improved taxpayer compliance.
Minister Ngafuan emphasized that the budget marks the beginning of a multi-year effort to address Liberia’s development challenges. He also announced reforms to ensure timely salary disbursements, with public sector workers now receiving their pay by the 24th of each month, a change implemented in November 2024.
Acknowledging the leadership of President Joseph Nyuma Boakai, Minister Ngafuan attributed the budget’s formulation to the President’s vision of “Think Liberia, Love Liberia, and Build Liberia.”
The draft budget now awaits legislative review, with citizens and international stakeholders closely monitoring its potential to deliver transformative growth. The FY2025 budget represents a bold step toward addressing Liberia’s pressing needs and advancing its developmental ambitions.
