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Liberia: Boakai Submits U.S.$851.8m Draft Budget to Legislature

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— But who will preside?

On Monday, November 18, 2024, President Joseph Nyuma Boakai, Sr. submitted the Fiscal Year 2025 Draft National Budget to the National Legislature, totaling an ambitious $851.8 million. The draft, which reflects a 15.3% increase over the 2024 Recast Budget of $738.9 million, underscores the administration’s commitment to delivering on the priorities outlined in the ARREST Agenda for Inclusive Development (AAID) while addressing debt servicing and other government obligations.

The draft budget was delivered to the House of Representatives’ “Presiding Officer” through the Chief Clerk, a move that carries significant constitutional implications given the ongoing legislative stalemate over the Speakership. The submission adheres to Section 17.1 of the 2019 Amendment and Restatement of the Public Financial Management (PFM) Act of 2009, which mandates the timely submission of the draft budget for consideration by the Legislature.

President Boakai has called on lawmakers to prioritize the budget’s swift review and approval, emphasizing the importance of ensuring its implementation beginning January 2025. However, the question of who constitutes the legitimate “Presiding Officer” remains contentious, given the internal wrangling in the House of Representatives. This ambiguity could have far-reaching consequences for the legislative process and the administration’s ability to execute its agenda.

A Budget with ambition

The US$851.8 million draft budget comprises US$833 million in core revenue and US$18.8 million in contingent revenue. It reflects the administration’s focus on advancing the AAID’s key priorities, which include social service delivery, infrastructure development, and investments in education, health, and agriculture. President Boakai has positioned this budget as a critical tool for achieving inclusive development, with significant appropriations aimed at addressing systemic challenges and fostering economic growth.

The increased allocation demonstrates the administration’s intent to boost public services, address critical obligations, and strengthen fiscal responsibility. However, achieving these goals requires collaboration with the Legislature–a task complicated by the current leadership impasse.

Who is the “Presiding Officer”?

The decision to submit the draft budget through the Chief Clerk to the “Presiding Officer” raises important constitutional questions. Article 34 of the Liberian Constitution vests the Legislature with the power to approve the national budget. Article 34(d) empowers the Legislature “to levy taxes, duties, imports, excise and other revenues, borrow money, issue currency, mint coins and to make appropriations for fiscal governance of the Republic…”

This process typically involves the Speaker of the House of Representatives as the presiding officer responsible for guiding legislative deliberations on the draft budget.

Yet, the ongoing effort by a majority bloc of lawmakers to unseat Speaker J. Fonati Koffa has created a leadership vacuum. With two factions laying claim to legislative authority, the identity of the “Presiding Officer” is now subject to interpretation. By submitting the budget through the Chief Clerk, the Executive Mansion appears to have sidestepped the contentious issue, signaling a cautious adherence to protocol without taking sides in the dispute.

This approach underscores the importance of preserving institutional stability and ensuring that critical governance processes, such as budget deliberations, are not derailed by political infighting. However, it also raises concerns about how legislative functions will proceed if the impasse persists. Without a clear resolution, debates on the budget could face delays, jeopardizing its timely passage and the administration’s ability to deliver on its promises.

Demanding Legislative accountability

The budget submission is a reminder of the Legislature’s constitutional responsibility to act in the nation’s best interest. The public expects their elected representatives to rise above factional disputes and prioritize pressing national issues. The delay in debating and passing the budget would not only hinder governance but also amplify public frustration with lawmakers perceived as prioritizing personal and political agendas over their duties.

President Boakai’s call for swift action on the budget reflects his administration’s recognition of the stakes involved. The 2025 fiscal year represents an opportunity to solidify gains and address long-standing challenges. Delays in the budget process would harm the country’s ability to meet debt obligations, fund social services, and sustain economic growth.

Finance and Development Planning Minister Augustine Kpehe Ngafuan is expected to address the public on November 19 to provide a detailed breakdown of the draft budget. This transparency is critical for fostering public trust and ensuring that citizens understand how their resources are being allocated.

The administration’s decision to prioritize transparency aligns with the PFM Act’s emphasis on accountability and public participation in fiscal management. By engaging the public early in the budget process, the administration is setting a positive precedent for openness and inclusivity.

The cost of Legislative impasse

The leadership crisis in the House of Representatives poses a serious risk to Liberia’s governance. Beyond the budget, critical legislation and national priorities are at stake. In a recent statement Speaker Koffa implored the majority bloc to return to the House chamber to transact business under his gavel while they seek the constitutional legitimacy to remove him. However, the majority bloc refuses to budge.

If the Legislature remains paralyzed, the ripple effects could undermine the government’s ability to deliver on its development agenda.