By P. Vangerline Kpotoe
MONROVIA, March 8 (LINA) – Amid the pullback of support from Liberia by the United States Agency for International Development (USAİD), the European Union (EU) is stepping-in to ensure the country’s domestic resource mobilization remains stable, Finance and Development Planning Minister, Augustine K. Ngafuan has disclosed.
Speaking on a local radio station in Monrovia on Thursday, March 6, 2024, Minister Ngafuan disclosed that on Tuesday, March 4, 2024, the Government of Liberia and the European Union signed two significant financing agreements totaling US$21 million. These agreements, he explained, are aimed at enhancing national development coordination and strengthening civil society organizations, ensuring that critical sectors of the economy continue to function in the absence of USAID support.
According to Minister Ngafuan, Liberia’s domestic revenue has been growing steadily despite economic challenges. He credited this progress to several key sectors, including international trade, mining, and tax collection by the Liberia Revenue Authority (LRA).
“Last year, our domestic revenue reached an all-time high. That doesn’t mean we started from zero—it took the collective efforts of institutions, businesses, and citizens contributing to taxes and national development,” Minister Ngafuan stated.
However, he acknowledged that sustaining this growth remains a challenge, particularly as international donors reduce their funding. The minister expressed appreciation for the EU’s commitment to supporting Liberia’s fiscal stability at such a critical juncture.
Addressing concerns over budget overspending, Minister Ngafuan also tackled recent allegations of government overspending in the FY2024 budget, terming such claims a misinformation.He emphasized that the government operates within the legal framework of Liberia’s Budget Transfer Law, which allows for reallocation of funds across different budget lines to address urgent national needs.
“It is concerning when individuals who lack expertise in fiscal management make sweeping allegations about budget mismanagement. Such statements undermine the integrity of the budget process, which is handled by experienced professionals,” the minister asserted.
In response to growing public debate over the government’s financial decisions, Minister Ngafuan called for increased budget literacy among Liberians, especially those commenting on national fiscal policies.
“There is a severe gap in budget literacy that needs to be addressed. We must ensure that people understand how public finances work before making unfounded claims that can mislead the public,” he stressed.
Minister Ngafuan reiterated the government’s commitment to transparency, fiscal responsibility, and economic stability, urging citizens to rely on verified information rather than speculation. He assured that the Ministry of Finance and Development Planning remains open to discussions aimed at improving public understanding of budgetary matters.
“As Liberia transitions away from heavy international donor dependence, the government will continue working to strengthen domestic revenue collection, enhance fiscal discipline, and foster economic resilience,” Minister Ngafuan noted.
