IPNEWS: Uncertainties remain high over recently passed US$880 Million 2025 fiscal budget amidst continued crisis at the House of Representatives.
The majority bloc of the House of Representatives has passed the 2025 Draft National Budget, amounting to US$880 million, following rigorous scrutiny and adjustments during budget hearings. The budget now awaits deliberation and concurrence by the Liberian Senate.
Initially submitted by the Executive Branch at US$851 million, the proposed budget was increased by US$29 million after detailed reviews by the House’s Committee on Ways, Means, and Finance. The adjustments aim to address critical areas such as healthcare, education, infrastructure, and security.
During the hearings, lawmakers identified additional revenue streams and reassessed expenditure priorities to increase the proposed amount. Representative James Kollie, Chairperson of the Committee on Ways, Means, and Finance, stated, “The additional US$29 million ensures that more resources are directed to critical sectors that impact the lives of ordinary Liberians. This budget reflects our commitment to equitable national development.”
In a swift move, the Liberian Senate also formally approved the 2025 National Budget, amounting to $880 million, following concurrence with the Majority Bloc of the House of Representatives. This endorsement finalizes the government’s fiscal framework for the year, shaping the financial operations of ministries and agencies nationwide.
Initially proposed at $851 million, the budget was revised upwards after thorough legislative scrutiny and adjustments. This increase reflects priorities under the administration’s ARREST Agenda for Inclusive Development (AAID), targeting infrastructure development, debt servicing, and economic stabilization.
President Joseph Nyuma Boakai had first presented the draft budget to the National Legislature on November 18, 2024. The submission initiated an extensive review process in both chambers, leading to a 15.3% increase over the 2024 Recast Budget of $738.9 million.
The approved budget comprises two primary components: Core Revenue at $833 million and Contingent Revenue at $18.8 million. These allocations are designed to sustain government operations and implement development initiatives under the AAID framework.
Key revenue streams include Tax Revenue, projected at $633.72 million (80% of domestic revenue), and Non-Tax Revenue, estimated at $138.5 million (17.4%). Additionally, External Resources, totaling $60 million (7% of the overall budget), have been secured from international partners, including $40 million from the World Bank and $20 million from the European Union. This marks a significant 50% increase in external resources compared to the 2024 fiscal year.
The proposed budget aligns with the government’s Pro-Poor Agenda for Prosperity and Development (PAPD), emphasizing investments in infrastructure, job creation, and social services. However, analysts note that the success of the budget depends on effective implementation and the prevention of corruption.
Meanwhile, House Speaker J. Fonati Koffa has labeled the Majority Bloc’s recent passage of the 2025 national budget, followed by Senate concurrence, as ultra vires—a legal term indicating actions taken outside the bounds of constitutional authority. Speaker Koffa’s declaration on Facebook comes amid escalating tensions within the House of Representatives, as a legislative impasse continues to deepen.
Responding to the budget’s passage, Speaker Koffa posted the term “Ultra Vires” on his Facebook page. His comment has since sparked widespread debate, with supporters praising his stance on upholding the rule of law, while others criticized him for allegedly obstructing progress.
Many of Speaker Koffa’s supporters commended his commitment to legal principles and denounced the actions of the Majority Bloc as a dangerous precedent.
James Villayan wrote: “Supporting the rule of law, even when it aligns with the minority’s stance against the majority’s lawlessness, is critical for fostering a just and stable society… Democracy thrives not on the whims of the majority but on a foundation of equitable and enforceable rules.”
Martin Sheriff praised Koffa’s resilience: “The Law is the Law; don’t give up… Don’t give up until the right thing is done.”
Abraham Kaikor Insurmountable added: “Do not resign like other Speakers before you. This bad and illegal precedent needs to stop, and I believe it’s going to stop with you.”
