President Joseph Boakai on Monday returned Liberia’s US$1.2 billion national budget to the Legislature, asking lawmakers to reexamine projected revenues and to consider adjustments that could include higher pay for public servants, according to people familiar with the matter.
The move comes about a month after both chambers of the Legislature agreed on the spending plan for the 12-month period ending Dec. 31, 2026.
Officials said the President’s concerns center on the budget’s revenue assumptions and the possibility of partially reversing aspects of the earlier public-sector pay harmonization — a change that could translate into a top-up for some civil servants.
Boakai and his Unity Party had criticized the previous administration under George Weah for cuts to public employee pay.
In November, the President submitted a US$1,211,085,227 draft budget for fiscal 2026 that relies heavily on domestic receipts and a US$200 million sign on payment from global steelmaker ArcelorMittal.
Domestic resources account for roughly 94% of projected financing (about US$1.13 billion), with external financing at about US$72 million (6%).
Key line items include tax revenue of US$726.97 million, non-tax revenue of US$83.92 million, the US$200 million ArcelorMittal sign on bonus, and contingent revenue of US$28 million.
The draft allocates about US$280 million to the Public Sector Investment Plan (PSIP), prioritizing agriculture, roads, rule of law, education, sanitation and tourism.
The International Monetary Fund has warned that Liberia missed about US$240 million in government revenue in 2024 because of generous tax exemptions to multinational firms — roughly 5% of GDP — and urged strong political action to scale back incentives, tighten tax administration and broaden the tax base.
The IMF also noted that the postponement of VAT implementation to 2027 increases the 2026 revenue shortfall, forecasting a budget gap of about 0.8% of GDP (roughly US$45 million).
Harmonization review sparks debate
The return of the budget coincides with a Senate ordered review of the National Standardization and Remuneration Act — the so-called “harmonization” that unified paygrades and payroll parity across the public sector. Senate President Pro Tempore Nyonblee Karnga Lawrence has directed the Ways, Means & Finance and Public Accounts Committees to begin an immediate review and report to plenary within two weeks.
Samuel Tweah, the former finance minister who led the original harmonization, said the review is timely but warned that undoing the reform would be damaging. “No government can undo the harmonization process for the next 50 years because it is a sound policy,” he said, arguing that a rollback would imperil relations with the IMF and undermine fiscal discipline.
Harmonization combined basic salary and general allowance into a single pay scale, applying consistent tax and social security rates.
It brought thousands of previously donor paid or irregularly paid health workers onto the government payroll, extending formal employment protections and social security contributions.
The reform targeted a sustainable public wage bill, with a midterm goal near US$296 million.
By OND Staff Writer
