At long last, the House of Representatives has voted to pass into law the draft national budget for fiscal year 2019/2020 with cuts in lawmakers’ salaries and benefits.
The decision was taken by a unanimous vote on Tuesday, October 1, during the 24th day sitting of the House’s extraordinary session following a report by the Joint Committee on Ways, Means, Finance, and Public Accounts and Expenditure.
This year’s budget is in the tune of US$526 million and about US$7 million short of the US$532.9 million submitted by the Ministry Finance and Development Planning.
Of the total US$526 million, tax revenue accounts for US$377.9, non-tax revenue, US$87.2 million and external resources accounts for US$60.8 million.
Cuts in budget
Amid public outcry and tackling budget shortfall in order to meet the International Monetary Fund (IMF) Standard, the House Joint Committee on Budget said it instituted several measures including salary reduction and omission of the contingency revenue portion.
According to the committee, US$10.4 million was identified as additional revenue accounting for road fund arrears and contributions for State Owned Enterprise (SOEs).
However, the revenue will be reserved in line with the Government’s standard for enrollment in the IMF program.
Additionally, the committee said it opted to omit US$7 million contingent revenue representing 5% of the entire budget, which was submitted by President George Weah.
The 2009 Public Financial Management Law called for the appropriation of five percent of the national budget as contingent revenue.
The draft 2019/2020 budget as submitted did not cover the salaries and incentives of about 1,200 health workers. These health workers were being compensated by a USAID project – FARA grant program. But the program has ended its compensation component.
The House budget committee also discovered during the hearing that Nurses and Doctors at the Fish Town Hospital in River Gee and Foya Hospital in Lofa, among others were left out of the payroll.
To accommodate all these civil servants, the Joint Committee in its report noted that it instituted a national action that led to the proposed reduction of all employees’ salaries.
The House of Representatives and the Liberian senate implemented a cut of 31% (US$2,586.00) and 36% (US$3,600.00) respectively in their monthly salaries.
The Liberian legislature at the same time agreed to reduce by 50% their monthly gasoline.
Budget by sector
In the just passed budget public administration accounts for US$183,855,474, Municipal Government: US$21, 031867, Transparency and Accountability: US19, 804,530; Security and Rule of Law: US$76,518,828; while Health accounts for US81, 557,132.
Also, Social Development Services carries US$10,048,992, Education: US$81,557,132; Energy & Environment: US$12,079,146, Agriculture: US$6,208,754, Infrastructure and Basic Services: US$33,350,005 and Industry and Commerce account for US$6, 066362.
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