The Joint Budget Committee of the 55th Legislature has vowed to robustly scrutinize the 2024 National Budget of US$692 million in the interest of the people of Liberia and the Country.
Montserrado County District #16 Representative, Dixon W. Seboe and chairman of the Joint Budget Committee of the 55th Legislature, on behalf of the Committee said they are poised to implement their constitutional mandate to review the National Development envelope (budget).
The Joint Committee Chair Rep. Seboe made the remarks on Monday during the kickoff of the 2024 Budget Hearing. He said for the next four days intensive Revenue hearings will be taking place.
The Joint Budget Committee comprises of Committees on Ways, Means and Development Planning and the Public Accounts & Expenditure from the House of Representatives and Senate.
He explained that the 2024 Draft National Budget will begin with the revenue component which will be done in close door (Executive) Session while the Expenditure Hearing will be done in opened session in the Joint Chamber of the Legislature.
Mr. James Dorbor Jallah, Commissioner General of the Liberia Revenue Authority making remark at the commencement of the 2024 Budget Hearing said as the Committee and Agents of the Executive convene to deliberate on the National Revenue Budget, a pivotal policy instrument, it is pertinent to reflect on the challenges and successes that
characterized the performance during the preceding fiscal year.
He averred that at the beginning of fiscal year 2023, the Legislature approved a revenue budget of US$782.9 Million. However, following a midyear review, the budget was revised to US$771.7 million.
“The Liberia Revenue Authority, fully cognizant of the uncertainties triggered by the 2023 electoral process, navigated the landscape with a collection of US$715.9 Million, thereby falling short of the revised budget by US$55.8 Million. However, amid this shortfall, I am pleased to report that our domestic revenue collection stood resilient at US$611.9 Million, exceeding collections from all preceding years, except for fiscal year 2022”. LRA Boss asserts.
He stressed that the achievement is noteworthy and underscores the effectiveness of the Country’s revenue mobilization efforts, but there persist challenges particularly concerning State-Owned Enterprises (SOEs), which consistently fall short of projections and what he termed as the misuse of Duty-free privileges.
“As we embark on these hearings, it is imperative to inject realism into the forecasting of revenue for SOES and scrutinize the extent of revenue foregone through the granting of tax
exemptions and waivers”. he stated.
The LRA CG was also quick to mention that looking ahead to the fiscal year 2024, the Liberia Revenue Authority expresses unwavering confidence in their ability to achieve lawful revenue target, However, this optimism is contingent upon the support and collaboration of this honorable body.
He said the LRA Urgent attention is required for the rehabilitation of our dilapidated rural tax and customs offices, which serve as linchpins for the effective decentralization of revenue collection.
The Commissioner General stated that as the Country strive to grow domestic revenue, she needs to identify critical areas with great revenue potential and tap into them. One of such areas is by transitioning from the current GST regime, which has a narrow tax base and
generates less than 3% percent of GDP, to a VAT regime with a broader tax base
and generates about 5-6 percent of GDP in many developing countries where it is designed and implement properly.
For his part Finance Development Planning Minister Boima Kamara said Government is optimistic about the expansion of economic growth by its targeted One Billion.
