-Finance Ministry discloses 5.1 percent Growth of the Liberian economy
Acting Minister of Finance and Development Planning, Hon. Anthony G. Myers, gave a mid-year update on the state of the Liberian economy, projecting growth to be 5.1 percent.
Speaking at a special press conference at the Ministry of Information, Culture, and Tourism on Wednesday, July 17, 2024, Acting Finance Minister Anthony G. Myers said economic growth will be driven by the strong performance of key sectors such as mining, agriculture, fishing and services.
Minister Myers highlighted that economic growth is expected to accelerate to 5.8% by 2025. He noted that the medium-term average growth rate of 5.6% will be supported by increased economic activity due to strong growth in mining activity, expansion of the services sector, large infrastructure investments by development partners, and improved electricity supply.
Commenting on structural reforms, Minister Myers said that to sustain and increase this growth, the government is committed to implementing structural reforms in key sectors such as energy, trade, transport, and financial services.
According to him, these reforms are aimed at creating a more favorable environment for economic activity and investment.
Minister Myers highlighted that inflation as an indicator of economic performance has slowed significantly. Inflation is expected to be 7.0% by the end of 2024.
In his opinion, this is reflected in the stabilization of prices in the Liberian market. Myers further stated that the inflation rate is expected to further decline to 5.0% by 2027.
On the budget rollout, Minister Myers assured that tax revenues are on track, revealing that the Liberia Revenue Authority’s total receipts as of the end of the June 2024 fiscal year stood at $342.6 million.
The Minister stated that cash on hand was $315.4 million and interim receipts were $27.2 million.
The Acting Minister of Finance revealed that taxes on income and profits (US$137.2 million) and taxes on international trade (US$108.8 million) were the main items that brought in the highest revenues.
Minister Myers said at the MICAT press conference that the government remains optimistic about the future of the country’s economy and is committed to ensuring sustainable growth and development through further reforms and strategic investments.
On expenditure, Myers said that as of June this year, the government had disbursed $255.4 million of the $315.4 million collected by the LRA.
Giving details of President Joseph Nyuma Boakai’sefforts towards fiscal decentralization, the Acting Minister of Finance said that the Ministry of Finance and Development, together with the Ministry of Interior and partners, recently verified the provisions of the Revenue Sharing Law applicable to County Service Centers across the country, will retain 40 percent of the revenues generated by the state.
He said the President of Liberia ordered the implementation of fiscal decentralization as part of administrative decentralization currently being implemented with the establishment of County Councils.
To advance the President’s vision of full implementation of the Local Government Act, Honorable Myers announced that a Local Government Finance Commission would be appointed whose task would be to set spending caps for the county on an annual basis.
Hon. Myers said that ten ministries and agencies have now agreed on the budget breakdown, strengthening county coffers as each county will be able to receive checks and vouchers that can be processed in each county.
Meanwhile, Minister Myers announced that significant efforts are being put into preparing the National Development Plan, Public Sector Investment Plan, and District Development Plan.
Two Liberian think tanks have been appointed to lead the effort in developing these plans, and the Ministry of Finance and Development Planning has already made arrangements for consultations, which are expected to begin shortly.
Furthermore, Acting Minister Myers announced that the Ministry of Finance has finalized plans with the General Audit Committee to conduct an audit of the Ministry of Finance and Development. The Minister said the audit period will be from January 1, 2022, to January 31, 2024.
