By Festus Poquie
Liberian authorities are slashing public spending to creating savings to finance essential programs and services most affected by the United States government’s aid freeze policy.
The West African nation, one of the poorest in the world with 5.5 million people stands to lose over $200 million in USAID funding this year. Within one month of the Trump’s administration non-aid directive, the Americans have communicated with Liberian counterparts that $50 million planned funding to the country has been cancelled.
Finance Minister Augustine Kpehe Ngafuan told Senators Monday the Boakai administration will adopt the policy of expenditure rationalization to eliminate waste and tackle spending gap.
“We are tightening controls. Many things are possible,” he said.
“The government should prioritize essential services and development projects, delaying or reducing funding for less critical initiatives. This approach ensures that resources are allocated to areas with the most significant impact.”
USAID is second largest contributor of aid to Liberia, spending $961.8 million between 2014 and 2024. The agency currently runs 105 active projects focusing on health, education, agriculture and energy amongst others.
US funding has immensely helped to combat diseases like HIV/AIDS, malaria and improve maternal health.
The authorities are worried reduction in aid will likely reverse some of the progress made in reducing these mortality rates, particularly in rural areas where access to healthcare services is limited.
Minister Ngafuan did not specify the size of the spending cut or which public programs could be dismantled to recue essential sectors crucial for economic stability. Subsidies and wages may be affected.
Media and communication industry is hard hit by the government new spending rules that significantly limit printing and publications of official documents to entities’ websites. Foreign travels have been restricted and goods and services slashed, remuneration for consultants capped and recruitment rules tightened.
The current administration reduced spending policy (expenditure rationalization) carries more weighty implications for individuals, households and businesses than the erstwhile George Weah-era harmonization policy that targeted waste in government wage bill while facing impacts of COVID-19 pandemic.
