-Speaker Koffa talks tough
By Jerromie S. Walters
Over the weekend, House Speaker Cllr. J. Fonati Koffaemphasized that the Legislature has inherited a complicated and flawed budget process that requires urgent attention. “We are responsible for the people’s money,” he stated, acknowledging the historical challenges faced by the Legislature in effectively managing budgetary matters.
While expressing his support for the recast budget, Speaker Koffa called on the Committee on Ways, Means, and Finance to proactively prepare for the 2025 National Budget. He urged the committee to implement a structured approach regarding how budgets are received, transmitted, and executed, stressing that accountability from the executive branch is important.
“The violations noted in the recast budget cannot be tolerated. Off-budget spending must adhere strictly to legal guidelines, and the House cannot grant waivers for such infractions,” he asserted.
Speaker Koffa highlighted the importance of ensuring that the budget reflects accountability and transparency in financial management. He urged the Ways, Means, and Finance Committee to re-evaluate the Public Financial Management (PFM) Law, asserting that the current structure has allowed an unelected official, the Finance Minister, to shift funds at his discretion—an authority that must be curtailed.
“Any passage of the 2025 National Budget must involve necessary adjustments and amendments to the PFM Law,” he stated. He also reminded his colleagues that despite differences, the Legislature must not jeopardize the nation’s progress.
Statistical details:
Statics from Liberia’s recast budget recently passed by the House of Representatives (HOR) outline a total austerity measure of $48,090,708 million. This adjustment is said to be primarily a response to projected revenue underperformance of $23,010,195 million, with an additional $18,119,487 million earmarked for reclassification to support emerging priority programs.
The projected expenditure without new revenue measures stands at $721,535,239 million. However, should new revenue strategies be implemented, expenditures are expected to remain at the initially approved figure of $738,859,827 million.
Objectives and Priorities:
The recast budget serves several critical objectives that include Alignment with Updated Revenue Forecasts: The primary aim is to realign the budget with the latest revenue projections and expenditure needs. This ensures that financial planning reflects the current economic landscape.
It also considers Resource Reallocation. The budget seeks to shift resources toward new or evolving priorities that have emerged since the original budget approval. It also endeavors to ensure Cost Savings and Budgetary Performance. The government says it is committed to identifying areas where cost savings can be achieved or reallocations made.
The recast budget also considers Strategic Direction and Accountability. It aims to align with new strategic directions, policies, or political mandates.
