President Joseph Boakai and the Ministry of Finance and Development Planning policy push for reduction in the country’s wage bill has collapsed as the total dollar value of the payroll moves upward.
The annual salaries and other remunerations for government officials and employees were cut by 2.6%, equivalent to $8 million brings the total wage bill from $305 million to $297 million in April.
But after five months the payroll has ballooned dispute the Civil Service Agency aggressive push to reduce the workforce it said was oversized.
On Tuesday, Margibi County Senator Nathaniel McGill came out strongly against the revived 2024 National Budget, citing concerns over unauthorized alterations and a puzzling increase in the wage bill.
McGill raised eyebrows over the government’s decision to increase the wage bill by an additional $3 million, even as it was simultaneously removing civil servants from the payroll.
“I could not understand how the wage bill increased by an extra $3 million while the government was removing civil servants from the payroll, as this logic was unexplained,” he said.
In a statement posted on his official Facebook account, Senator McGill made it clear that he did not vote in favor of the recast budget, despite the government’s efforts to address the issues raised.
“Let it be known that I did not vote for the 2024 recast budget due to the concerns we raised about alterations, confirmed by the Ad-hoc Committee’s report establishing that the Ministry of Finance and Development Planning (MFDP) had altered the budget,” McGill declared.
The senator expressed his dissatisfaction, stating, “We were not convinced that those issues were fully addressed in the recast budget.”
The revelations from the Ad-hoc Committee’s report, which confirmed the MFDP’s unauthorized alterations to the budget, have further fueled concerns about the integrity of the budgetary process.
Senator McGill’s refusal to support the recast budget underscores the growing skepticism among lawmakers about the transparency and accountability of Liberia’s public finances.
Why the wage bill is climbing
President Joseph Boakai shift from his long-standing ideology of a small efficient government toa large government structure is chief reason driving the growth in the country’s wage bill.
This policy option has led to increase in the number of offices across ministries and agencies, which critics and analysts see as attempt to appease loyalists and supporters.
Since taking office, the President has appointed numerous board members and members of state-owned enterprises and other government agencies. Between January and March, more than 250 individuals have already been appointed to just board related positions.
Experts and critics argue that this expansion of government is detrimental to efficient corporate governance. With an already overstretched state bureaucracy and a lack of technical know-how, the effectiveness of these boards is called into question.
“Board governance is a serious matter but in Liberia is a feel-good reward system,” former Auditor General John Morlu said.
“99% of the people have no business being on the board in which they are appointed. Put people on board where they can add value, not just board fees. Government is also getting bigger than CDC. CDC made government bigger than Sirleaf, too. Now Boakai is doubling down as well. They are giving up again on private sector led growth.”
