AS THE WORLD’S 8th poorest nation, Liberia continues to tussle with unemployment, crumbling infrastructure, and widespread poverty. Yet, the government’s recently approved 2025 budget tells a different story—one of misplaced priorities, excessive spending, and a glaring neglect of the very people it is meant to serve.
AT A TIME when Liberia should be investing heavily in public sector projects to stimulate economic growth and create jobs, the fiscal envelope for 2025 reveals a staggering 87.9% (US$773.95 million) allocated to recurrent expenditures. These include salaries, benefits, fuel, foreign travels, luxury cars, entertainment, and allowances. In contrast, a mere 12.1% (US$106.72 million) is earmarked for public sector investment projects (PSIP)—funds critical for addressing the nation’s infrastructure deficit, improving healthcare and education and creating employment opportunities.
THIS LOPSODED BUDGET is not just a matter of poor planning; it is a betrayal of the Liberian people. While ordinary citizens like Obediah Kormon struggle to find work and put food on the table, the budgets of top government officials have seen significant increases. Vice President Jeremiah Koung’s budget rose from US$3.7 million to US$3.9 million, Senate Pro-Tempore Nyonblee Karnga’s budget increased from US$1 million to US$1.2 million, Deputy Speaker Thomas Fallah’s budget jumped to US$1.2 million from US$645,000, and President Joseph Boakai’s budget doubled from US$1.7 million in 2024 to US$3.4 million in 2025. These hikes are not justifiable in a nation where over 60% of the population lives in poverty.
THE CORE RECURRENT expenditure for 2025 further highlights the government’s misplaced priorities: – Compensation of Employees (US$315.59 million): While fair salaries for civil servants and elected officials are essential, allocating 41.8% of recurrent spending to this category leaves little room for critical investments in infrastructure, healthcare, and education.
GOODS AND SERVICES (US$138.71 million): This 18.3% slice includes training for law enforcement, medical supplies, and educational materials. While necessary, questions remain about the efficiency and long-term impact of these expenditures. Subsidies (US$2.95 million): A paltry 0.4% of recurrent spending is allocated to subsidies, which are meant to support private-sector institutions in education, health, and commerce. This amount is woefully insufficient to address pressing needs. Grants (US$117.01 million): While commendable, the effectiveness of these funds depends on proper implementation and oversight, which have historically been lacking.
THE LIMITED ALLOCATION to public sector investment projects (PSIP) is particularly concerning. With only 12.1% of the budget dedicated to PSIP, the government is failing to address Liberia’s infrastructure deficit, improve healthcare and education systems, and create jobs. This neglect perpetuates the cycle of poverty and underdevelopment, leaving ordinary Liberians to bear the brunt of the government’s fiscal mismanagement.
THE SUSPENSION OF U.S. aid, effective January 20, 2025, has further exacerbated Liberia’s economic woes. Former U.S. President Donald Trump’s criticism of American foreign aid to Liberia, particularly a $1.5 million allocation for voter confidence, underscores the precariousness of Liberia’s reliance on external support. The freeze has disrupted critical development projects, including a $70 million USAID-backed initiative to modernize Liberia’s tax system.
FINANCE AND DEVELOPMENT Planning Minister Augustine Kpehe Ngafuan has highlighted the financial strain caused by the aid suspension, stating that it has derailed key reforms. This disruption underscores the urgent need for Liberia to reduce its dependence on foreign aid and prioritize domestic revenue generation.
LIBERIA’S 2025 BUDGET represents a missed opportunity to prioritize investments that could drive sustainable development and improve the lives of ordinary Liberians. The disproportionate allocation to recurrent expenditures raises serious questions about fiscal discipline and prioritization.
TO ADDRESS THESE challenges, the government must take bold steps to reorient its spending priorities. This includes: Reducing Wasteful Expenditures. Cutting back on excessive foreign travels, luxury purchases, and inflated salaries for top officials.
INCREASING PUBLIC SECTOR Investment: Allocating more resources to infrastructure, healthcare, education, and job creation. Improving Revenue Collection: Strengthening tax administration and curbing financial inefficiencies to boost domestic revenue. Combating Corruption: Ensuring transparency and accountability in the use of public funds.
IF LIBERIA IS to break free from the cycle of poverty and achieve meaningful progress, it must adopt a more balanced and strategic approach to budgeting—one that prioritizes the needs of its people over the comforts of its leaders.
