Finance Minister Speaks On 2025 FY Budget, Highlights Key Economic Progress

Finance Minister Speaks On 2025 FY Budget, Highlights Key Economic Progress

MONROVIA, Nov. 19 (LINA) – The Minister of Finance and Development Planning (MFDP), Augustine K. Ngafuan, has disclosed that the total revenue envelope for the draft national budget of Fiscal Year (FY) 2025 is projected at US$851.8 million.

Speaking Tuesday, November 19, 2024, at the Ministry of Information regular press conference, Minister Ngafuan explained that the envelope includes Core Revenue of US$833 million (97.8%) and Contingent Revenue of US$18.8 million (2.2%). He said of the total, domestic revenue constitutes US$791.76 million or 93% of the envelope, with Tax Revenue accounting for US$633.72 million (80% of domestic revenue) and Non-Tax Revenue (NTR) at US$138.5 million (17.4%).

The Minister noted that President Joseph N. Boakai, Sr. submitted the FY2025 draft budget to the National Legislature on Monday, November 18, 2024, in line with Section 17.1 of the 2019 Amendment and Restatement of the Public Financial Management Act of 2009.

According to Minister Ngafuan, the FY2025 budget reflects a 15.3% increase over the FY2024 Recast Budget of US$738.9 million, attributing such growth to consistent domestic revenue performance, particularly in taxes on income, profits, goods, services, and international trade.

Minister Ngafun maintained that external resources account for US$60 million 7% of the total revenue, stating that to be sourced from the World Bank is US$40 million and the European Union is US$20 million, which marks a 50 percent rise in external resources compared to FY2024. 

Minister Ngafun highlighted a projected growth of 5.8 percent in the Liberian economy for 2025, up from a forecast of 5.1 percent in 2024.

He noted that key contributors to this growth include the mining and panning sector, which constitutes 8.5 percent, Manufacturing sector accounts for 6.9 percent as well as the agriculture and fisheries sector representing 5.2 percent and services sector of 5.0 percent.

The ARREST Agenda (2025–2029) anticipates an average annual growth rate of 5.9 percent, driven by investments in public sector projects, the mineral sector, and structural reforms in energy, trade, transportation, and financial services.

Minister Ngafun emphasized that under President Boakai’s leadership, the administration is taking deliberate steps to invest in initiatives that directly improve the well-being of Liberians.

“In order to unlock the economy, we must build more roads and other infrastructure, opening access to other parts of the country, to this end we have allocated US$52.9 million, including US$37.6 million for the rehabilitation of major roads,” the Minister started.

The Finance Minister also announced that this will encompass the rehabilitation of rural roads and the construction of bailey bridges across the country, stressing that this envelope is counterpart funding for ongoing works on key road corridors such as the Saclepea – Zwedru segment of the SECRAMP project, the Sanniquellie – Loguatuo highway, and the Salayea – Beyan Town section of the Gbarnga – Mendikorma highway.

He added that an additional US$15 million has been set aside for the implementation of other infrastructure improvements and the Pliable Roads Program launched earlier this year by the government to ensure that all major road corridors in the country are pliable, said the Minister.