IPNEWS: Finance Minister Augustine Kpehe Ngafuan has presented a $1.211 billion draft national budget for the 2026 fiscal year, outlining a plan centered on economic growth, infrastructure investment, and a strengthened commitment to fiscal transparency.
The budget, submitted to the National Legislature on behalf of President Joseph Boakai, marks a significant increase from the previous year. A key point of emphasis is that an overwhelming 94% of the funding ($1.139 billion) is projected to come from domestic revenue, a fact Minister Ngafuan hailed as a sign of Liberia’s growing self-reliance.
“This demonstrates our growing capacity to finance our own development,” Ngafuan stated at a press briefing.
Revenue and Strategic Investments
The government anticipates a 47% surge in domestic revenue, attributed to improved fiscal management. The budget also includes a projected $200 million signature bonus from a pending oil and gas agreement with TotalEnergies.
This bonus is the cornerstone of a major expansion in public investment. The Public Sector Investment Program (PSIP) is set to more than double to $221 million, with the entire $200 million from the TotalEnergies deal earmarked for transformative infrastructure.
Half of this infrastructure fund ($100 million) is specifically allocated to tackle the country’s most critical growth constraints: energy and roads. The plan designates $50 million for the Liberia Electricity Corporation (LEC) to support energy expansion, smart metering, and rural electrification, and another $50 million for nationwide road construction.
“We are prioritizing power and roads—two sectors that directly unlock growth,” the Minister emphasized.
Social Programs and Institutional Support
The draft budget increases funding for education and health. It includes salary support for health workers at the private ELWA Hospital, which Ngafuan described as providing an essential public service. Funding is also in place for the new Redemption Hospital, expected to open next year.
To bolster government capacity, the plan includes hiring over 200 engineers at the Ministry of Public Works and providing salary top-ups for specialized staff at key institutions like the Liberia Revenue Authority (LRA) and the Anti-Corruption Commission (LACC).
Debt Management and Fiscal Optimism
Addressing the national debt, which stands at $2.7 billion, Ngafuan confirmed an allocation of $200 million for debt servicing. He defended the use of debt, stating, “Debt is not a demon. What matters is how you use it,” arguing that loans must be tied to projects that grow the economy.
Reflecting on a challenging previous year, the Minister expressed confidence, noting that domestic revenue had surpassed $700 million for the first time with no shortfalls. He praised President Boakai’s “experienced” leadership in navigating economic turbulence.
In a move to foster public trust, the full budget document has been published online for citizen review. “We welcome analysis from citizens. Transparency is key,” Ngafuan said.
Concluding with optimism, the Finance Minister assured Liberians that the FY2026 budget would create new opportunities for business and jobs, declaring, “With the support of President Boakai and our people, next year will be better.”
The draft budget now awaits deliberation and approval by the National Legislature.
