Liberian has taken steps to share revenue with local government authorities following approved of Public Financial Management regulations seeking to improve governance and the efficient management of public resources.
Among these is the Revenue Sharing Regulations (RSR), which provides a comprehensive framework for implementing the Revenue Sharing Law of 2021.
The new regulations outline mechanisms for equitable revenue distribution between central and local governments. This includes granting local governments greater access to revenue generated from public services within their jurisdictions, as well as a share of revenues derived from the extraction and use of natural resources.
This shift is expected to benefit resource-rich counties more compared to those with fewer natural resources, as they will now have a greater stake in the economic benefits generated by the resources within their territories.
The regulations are designed to promote fiscal decentralization and empower local governments to effectively manage their financial resources.
“By the ushering of these financial management instruments, it is my Administration’s efforts to ensuring that the necessary tools and frameworks are in place to guarantee fiscal responsibility, equitable revenue sharing, and transparent governance across Liberia,” said President Boakai.
