FY 2018-2019 Budget

Budget Summary


The FY2018/19 budget is the seventh since the launch of the Medium Term Expenditure Framework (MTEF) budgeting in Liberia and the first for the Weah administration. The focus of this budget is consistent with the President’s Pro-Poor vision of navigating the country’s economic development through a new path of thinking out-of-the-box and acting proactively to open up new horizons for Liberia. To improve people’s livelihood, the Government is resolute in devoting resources to and sparing no effort in achieving its development goals.

Based on the economic growth rate and boost in domestic revenue potential, the FY2018/19 Budget is projected at US570.1 million. This shows about six percent increase compared to FY2017/18 approved Recast Budget of $ 536.2 million.

-National Budget, Fiscal Year 2018/19

Revenue Summary


Revenue Sources
Amount [$US Millions]
Domestic Revenue 506.1
Tax Revenue 391.3
Non Tax Revenue 106.3
Contingent Revenue 8.5
External Revenue 64.0
Grants 51.35
Loans 12.6
Total Revenue 570.1

FY 2018-2019 Expenditures

FY2017/2018 & FY2018/2019 Budget Comparison

At $570.1 million, the Fiscal Year 2018/19 budget is approximately 6 percent increase over the Fiscal Year 2017/18 budget of $536.2 million. This includes increases in both Recurrent Expenditure and Public Sector Investment Plan.

These increases are spread across various sectors [see Recurrent Budget by Sector below] as the government plans to expand and improve on the Health, Social Development, Local Government, Agricultural and other essential sectors.


FY 2018-2019 Expenditures

Public Sector Investment Plan

Projection for public investment appropriated at $58.7 million constitutes 10.3 percent of the total expenditure portfolio. This shows a 25 percent increase in PSIP compared to allocation of the $46.9 million (this include election budget of $23.4m) in FY2017/18. The $58.7 million has been earmarked for new projects (especially road pavement) that have been identified in the Health, Education, Agriculture, Infrastructure, and Social Development sectors. These interventions are expected to stimulate the economy and boost domestic mobilization while facilitating quality service delivery especially to the underprivileged.

-National Budget, Fiscal Year 2018/19

Recurrent Budget Categories


The total projected amount of $511.3 million for FY2018/2019 recurrent expenditure is distributed as follows:

  1. Compensation of Employees: Total allocation for this category of expenditure is $317.1 million, constituting 62 percent of recurrent expenditure. This is a 3 percent increase compared to FY2017/18 allocation of $307.8 million. The net increase is as the result of the hiring of over 2,330 new health workers and regularizing the salaries of some underpaid medical practitioners and specialized doctors.
  2. Goods & Services: An aggregate amount of $91.5 million has been allocated for Goods & Services. Of the $91.8 million, $80.9 million os for core budget while $8.52 million is for contingent. The total allocation for goods and services accounts for 18 percent of recurrent expenditure. Comparatively, this indicates about 38 percent decrease from
  3. Grants: Total allocation for grants is $54.7 million, representing 11 percent of total recurrent expenditure. This indicates a 13 percent decrease from $63.1 million approved in FY2017/18 recast budget.
  4. Non-Financial Asset:The total allocation for Non-financial Assets is $15.6 million or 3 percent of recurrent expenditure. This category of expenditure will cover the cost of machinery equipment for routine public works such as in-year road maintenance. This unique allocation is a hybrid of investment and recurrent expenditures.
  5. Social Benefits:Estimated at $0.048 million, this expenditure category constitutes 0.01 percent of recurrent expenditure.
  6. Public Debt:Total debt repayment for FY2018/19 is estimated at $30.0 million, of which $6.7 million and $23.3 million is for repayment of Domestic and Foreign principle respectively. Total allocation for debt servicing comprises of 6.1% of recurrent expenditure.
  7. Subsidy:The amount of $2.5 million or 0.5% is the expenditure estimate for subsidy. It will go towards complementing the efforts of the private sector in providing basic social services to the population in the Social Development, Education and Health sections respectively.

-National Budget, Fiscal Year 2018/19

Recurrent Budget by Sector


4.1 Public Administration Sector
The Public Administration sector received the highest appropriation ($177.5 million) which is 31% of total allocation for fiscal year 2018/19. This reflects a 1% increase over FY2017/18 recast appropriation of $175.1 million. Paramount amongst the deliverable for this sector in this fiscal year will be strengthening domestic revenue mobilization; maintaining sustainable debt level; and advancing reforms in the public sector to ensure a modern, professional, motivated and productive public sector workforce. The National Population Census and renovation of the Executive Mansion are the two main projects for this year.

4.2 Municipal and Local Government Sector
This sector has a total allocation of 21.1 million or 4 percent of total expenditure in the FY2018/19 budget. This shows a 22 percent increase from last fiscal year’s appropriation of $17.3 million. Top priorities in this sector are the Clean Cities project geared towards maintaining clean cities across the country and the MCC Cheesemanburg Landfill & Urban Sanitation Project.

4.3 Transparency and Accountability Sector
The appropriation for the Transparency and Accountability Sector for FY2018/19 budget is $21.9 million constituting 4 percent of the total resource envelope. This reflects a 51 percent decrease compared with the sector’s FY2017/18 recast budget of $44.9 million. The main reason for the retrenchment in the FY2018/19 ceiling is the one-off allocation for the general election during last fiscal year.

4.4 Security and Rule of Law Sector
The appropriation in the Security and Rule of Law Sector is $86.1 million, about 3 percent decrease when compared to $89.2 million in FY2017/18 recast budget. The net decrease in appropriation is as a result of the one-off allocation for election security in the last fiscal year. Top priority in this sector for the ensuing year is to provide a military hospital for army personnel.

4.5 Health Sector
The Health Sector’s appropriation in FY2018/19 is 81.58 million, showing a 12 percent increase compared to the FY2017/18 appropriation of $73.1 million. Key achievements in the Health sector last year includes increased access to health care, the upgrade of equipment and facility at JFK Hospital, the expansion and improvement of mental health services and improving medical services at JFD Hospital.

4.6 Social Development Services Sector
The amount of $11.8 million appropriated for the sector reflects a 23 percent increase over the $9.6 million in FY2017/18 recast budget. Key targets in this year’s budget include the sport development programs, Program for Vulnerable Youth at Risk and Community Development Projects across the country.

4.7 Education Sector
The Education Sector’s total appropriation is $85.36 million for FY2018/19. This reflects a 4% increase from $81.8 million in FY2017/18. The allocation accounts for 15% of expenditure projection in this fiscal year. Efforts to improve the education service delivery in an effective and efficient way remain the top focus of the sector. Additionally, the recruitment and placement of qualified teachers and instructional staffs in public schools; the construction and renovation of laboratories for 6 public schools; the provision of seating capabilities for all public schools will be of high priority.

4.8 Energy and Environment Sector
Allocation in the Allocation in the Energy and Environment Sector for FY2018/19 is 12.6 million, 2% of total appropriation. This amount reflects a 18 percent decline compared to FY2017/18 appropriation of $15.1 million. The decrease is largely attributed to the completion of projects in the FY2017/18 recast budget.

4.9 Agriculture Sector
Comparative analysis of the numbers reflects a 48% increase between FY2017/18 recast appropriation of $5.3 million and FY2018/19 appropriation of $8.3 million. Key focus for this sector is the rice value-chain development.

4.10 Infrastructure and Basic Services Sector
The total appropriation in the Infrastructure sector is $57.2 million. This shows about 243% increase compared to FY2017/18 appropriation of $16.7 million. This constitutes 10 percent of total expenditure projection. Key priorities in the sector this year are asphalt pavement of roads; construction of low-cost housing units; and construction of bridges.

4.11 Industry and Commerce Sector
The amount of $7.1 million constituting 1% of total appropriation has been allocation for this sector for FY2018/19. This shows a 10% decrease compared to FY2017/18 appropriation of $8.0 million. Key deliverables in the sector are the promotion of the domestic private sector which would enhance the development of the domestic market for job creation and trade promotion.

-National Budget, Fiscal Year 2018/19


Sources

National Budget, Fiscal Year 2018/19, Ministry of Finance and Development Planning, Republic of Liberia. 14 Jul. 2018.

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