Africa-Press – Liberia. The joint budget committee of the 54th Legislature has demanded all spending entities including line ministries and agencies to submit their performance reports for the past fiscal year as they defend their budget for FY2023.
This decision was taken through a motion last week at the start of the hearing into the expenditure component of the 2023 draft national budget.
The motion, as adopted by the committee, prematurely adjourned the hearing and demanded all heads of spending entities that were due at the hearing to appear today, Friday with their performance report as enshrined in the Public Financial Management (PFM) law of Liberia.
The joint budget committee comprises members of the Committees on Ways, Means and Finance, and Public Accounts of the House of Representatives and the Liberian Senate.
The committee had completed the hearing of the revenue aspect of the budget which saw the appearance of the officials of the Ministry of Finance and Development Planning (MFDP), and the Liberia Revenue Authority (LRA) behind closed doors.
On Thursday, it opened the expenditure aspect of the budget and the Ministries of Finance Development Planning (MFDP), Health, Liberia Revenue Authority, Liberia Institute of Statistics and Geo-information Services (LISGIS), John F. Kennedy (JFK) and the National Public Health Institute of Liberia were expected to attend, but the committee prematurely adjourned the session to allow the institutions present their performance report.
The decision was adopted following a motion filed by Rep. Dorwohn Twain Gleekia (District #6, Nimba County), and subjected to series of amendment by Reps. Francis S. Dopoe (District #2, River Gee County), Julie F. Wiah (District #3, Lofa County) and Ivar K. Jones (District #2, Margibi County).
“We would like to announce today in line with the amendment made that we should adjourn and those entities invited to appear today be made to appear tomorrow. With the motion carried, we will now cease the opportunity as the joint committee chairperson, that the hearing is hereby adjourned and we will ask that all of those entities appear tomorrow,” declared Rep. Thomas Fallah, Chairman of the Joint Committee.
Learning from past mistakes?
The 54th Legislature has come under staunch criticism for their “failure” to thoroughly scrutinize the national budgets that have been submitted by the Executive in the past.
Last year, a number of legislators from the opposition bloc claimed that the budget was hastily passed without a proper scrutiny as spending entities did not submit their performance reports as required by Section 36 of the PFM Law. The law, among other things, states that “It is a general responsibility under this Act for all government officials handling public financial transactions to ensure that financial information is reported in a timely, comprehensive, and accurate manner, in the manner prescribed in this Act, under its regulations, and in instructions issued by the Minister.”
In a special statement, the Committee Chair, Rep. Fallah, called on his colleagues to remain resolute in thoroughly scrutinizing the national instrument to the best of their abilities so as to continuously “justify the confidence” reposed in them by the Liberian people.”
“I am looking forward to your candid and robust deliberations in the days ahead as we do the people’s business,” he added.
The FY 2023 proposed draft national budget is the second since the country transitioned from a mid-year fiscal budget to a calendar year budget. It is in the tune of US$777,943,212.50.
Of this amount, 16% or LRD 20.1 billion is domestic currency, and $656.6 million or 84% is actual United States dollars; while the average annual projected exchange rate by the Central Bank of Liberia is US$1:165.31 LRD.
Total projected revenue from Domestic Resource Mobilization (DRM) is US$667.9 million or 86%, while External Resources account for US$110 million or 14%.
Appearing before the committee at the start of the exercise last week, the Deputy Minister for Fiscal Affairs, Samora P.Z. Wolokolie, said revenue assumptions, are supported by the macro-economic and tax policy assumptions that real GDP (in dollar terms) for 2022 is estimated at US$3.51 billion and is expected to reach US$4.9 billion in 2023.
“The statistics speak to the good health of the economy under our stewardship,” he said.
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