Liberia: Amid Budget Submission Controversy, Finance Minister Ngafuan Tasks 5.8% Financial Progress as Budget Increases by 15.3%
Monrovia – The controversial submission of the fiscal yr 2025 draft nationwide finances to the Legislature continues to spark widespread debate among the many public, however that’s not the one situation the general public is speaking about.
By Gerald C. Koinyeneh, [email protected]/Webster Clayeh, [email protected]
The Government of Liberia’s latest announcement to make sure no public sector worker earns beneath the US$150 month-to-month minimal wage as stipulated within the Decent Work Act of 2015 has drawn combined reactions. While heralded as a step towards addressing public sector remuneration challenges, the initiative has reignited debates over wage reforms, coverage continuity, and credit score attribution between successive administrations.
The whole income envelope of the Draft National Budget for FY2025 is projected at US$851,8 million, comprising Core Revenue of US$833 million or 97.8% and Contingent Revenue of 18.8 Million or 2.2%. Of this quantity, Domestic Revenue constitutes US$791.76 million or 93 % of the entire envelope.
At the Ministry of Information’s common press briefing on Tuesday, Augustine Kpehe Ngafuan, the newly appointed Minister of Finance and Development Planning mentioned the Liberian financial system is projected to develop by 5.8 % in 2025, up from a forecast of 5.1 % in 2024.
He mentioned the 2025 projections are based mostly on robust performances within the mining and panning sector (8.5 %), the manufacturing sector (6.9 %), the agriculture & fisheries sector (5.2 %) and the companies sector (5.0 %).
Nurses, midwives, and doctor assistants will obtain US$50 month-to-month wage will increase, whereas different well being staff will see will increase starting from US$25 to US$40, based mostly on their roles… Additional staff within the agriculture and safety sectors, together with AFL troopers, cops, and agriculture extension staff, can even profit from wage will increase of between US$30 and US$40 monthly.
Augustine Kpehe Ngafuan, Minister of Finance and Development Planning
According to the Minister, the highest two contributors to GDP in 2025 would be the companies sector with 38 % and the agriculture and fisheries sector with 29 %. The relaxation, he mentioned, shall be mining and panning at 19.2 %, forestry at about 8 %, and manufacturing at six %,” He burdened.
What’s there for civil servants
The minister introduced that beginning subsequent yr, no central authorities worker will earn lower than the US$150 minimal month-to-month wage threshold mandated by the Decent Work Act of 2015, stating that President Boakai has licensed the allocation of over $16 million to fund the primary section of a multi-year initiative geared toward addressing longstanding remuneration challenges within the public sector.
“Nurses, midwives, and physician assistants will receive US$50 monthly salary increases, while other health workers will see increases ranging from US$25 to US$40, based on their roles,” he mentioned. “Additional workers in the agriculture and security sectors, including AFL soldiers, police officers, and agriculture extension workers, will also benefit from salary increases of between US$30 and US$40 per month.”
Key Measures to Boost Salaries and Benefits
Ngafuan disclosed that roughly 28,200 authorities staff—representing 45% of the workforce—will obtain wage will increase.
Healthcare Workers together with Nurses, midwives, and doctor assistants will see a month-to-month wage enhance of $50, whereas different well being staff will obtain increments starting from $25 to $40, relying on their roles.
Agriculture and Security Workers together with AFL troopers, cops, and agriculture extension staff will profit from wage raises of $30 to $40 monthly.
Addressing Volunteer Worker Challenges
Minister Ngafuan revealed that $2.6 million has been allotted within the FY 2025 finances to start incorporating volunteer staff from the Ministries of Health and Education into the federal government payroll.
“This funding will initiate a multi-year process to regularize volunteer workers following a rigorous vetting exercise,” he mentioned.
Adjustments for Educators
Nearly 2,000 lecturers holding C-Certificates, B-Certificates, and superior {qualifications} will profit from wage changes to align their earnings with their skilled ranges.
“A $3 million allocation in the draft budget will ensure these educators are paid according to their qualifications,” Minister Ngafuan famous.
Support for Specialist Doctors
The draft FY 2025 finances additionally allocates practically $3 million to extend the salaries of specialist medical doctors by a minimum of $225 monthly, beginning January 2025.
“This measure is part of the government’s broader strategy to address pay disparities in the health sector,” Ngafuan mentioned.
Minister Ngafuan introduced the implementation of the National Security Act of 2015, which is able to present full insurance coverage protection to over 5,000 active-duty members of the Liberia National Police starting January 2025.
However, critics argue that this announcement lacks novelty. Writing on his Facebook wall, Samuel Tweah, former Minister of Finance mentioned the Coalition for Democratic Change (CDC) administration carried out the same coverage in 2022, which raised the salaries of over 15,000 staff incomes beneath the US$150 threshold, costing roughly US$6 million yearly. Tweah famous that just a few staff—resulting from suspension or different anomalies—at present earn beneath this threshold, thus minimizing the sensible affect of the brand new announcement.
The Legacy of Harmonization
Tweah acknowledged that the CDC authorities’s “harmonization” coverage, carried out to handle inconsistencies within the public sector wage construction, stays a contentious matter. Under harmonization, the twin system of fundamental wage (usually denominated in Liberian {dollars}) and basic allowance (paid in U.S. {dollars}) was consolidated right into a single taxable pay construction. This reform, he added, aimed to get rid of the discretionary practices of the Unity Party period, which allowed for vital wage disparities throughout ministries and businesses.
“CDC placed US$ 5 million in the original 2024 budget to increase the salary of health workers to implement a new pay grade developed with health workers in 2023. This money was taken out by the UP government, so news about finding money to implement this is no news!” Tweah acknowledged.
“More importantly, when we say ‘harmonization can never be reversed’ we don’t mean you cannot carry salary up. The CDC Gov over the last six years took the salary of judges, teachers, UL professors and several other categories of workers to higher levels based on revenue performance.”
He mentioned Government salaries must preserve going as much as meet up with rises in the price of residing additional time, particularly for the reason that complete physique of Liberian wage has been low for almost all of staff since 2005!”
So ‘you can never reverse harmonization’ means you can’t return to the broken-up period “basic salary and general allowance system”.
In this twin system, Tweah famous that some 43,000 Government staff earned fundamental wage, primarily denominated in Liberian {dollars}, whereas greater than 25,000 staff had been beneath a General Allowance US greenback system, the place UP period ministers adopted NO RULES, STANDARDS, or PAY Grade in hiring folks. We referred to this as “you call the salary you want, you get it”
Critics of the Unity Party argue that harmonization created a extra clear and equitable system whereas elevating salaries for 15,000 low-paid staff. However, it additionally led to reductions for 7,000 staff in high-paying ministries, a transfer some perceived as a wage reduce regardless of official explanations on the contrary.
The Boakai administration’s wage changes, subsequently, are seen by some as an extension of the CDC’s reforms somewhat than a novel initiative.
