Monrovia — The Liberian government, through the Ministry of Finance and Development Planning, has begun enforcing stricter expenditure controls to curb wasteful spending, following the suspension of funding from the United States Agency for International Development (USAID) to several key sectors.
Speaking before the Liberian Senate on February 25, Finance Minister Ngafuan outlined measures the government is taking to manage fiscal challenges caused by the suspension of USAID support.
The cuts affect vital sectors including health, education, agriculture, and security. "We have started tightening fiscal rules, and I've written to all heads of spending entities to prioritize their expenses and tighten their belts," Ngafuan stated.
He also disclosed that the government is working with the Liberia Revenue Authority (LRA) to digitize revenue collection and increase domestic resource mobilization.
Ngafuan confirmed that the government is taking careful steps to avoid sending negative signals to the market, while simultaneously filling gaps left by the suspension of USAID support. He assured the public that Liberia would continue to navigate these fiscal challenges with a focus on long-term sustainability.
Minister Ngafuan also addressed the issue of vehicle purchases for public officials, reminding government agencies that the Budget Law of 2024 limits vehicle costs for public officials to US$45,000.
He pledged to address reports that the Civil Service Agency (CSA) had set a new threshold of US$60,000.
Additionally, Ngafuan emphasized the need for improved monitoring and reporting by State-Owned Enterprises (SOEs) to ensure they meet their responsibilities and obligations.
On Liberia's debt, Ngafuan revealed that the country's debt stock totals US$2.5 billion, including US$1 billion in domestic debt. He reassured that the government is working to improve its credibility with financial institutions by paying interest on debts and strengthening partnerships with local banks.
Ngafuan added by stressing the importance of timely passage of the national budget, a responsibility shared by both the Executive and Legislative branches. He affirmed that ensuring timely budget submission would remain a top priority for the Ministry of Finance.
