MONROVIA – The House Ways, Means, and Finance Committee has issued a critical preliminary report regarding the revenue component of the Draft Fiscal Year 2026 National Budget, indicating that the projected revenue of 1.2 billion USD may be unrealistic without significant and immediate reforms.
The committee’s findings suggest that the FY2026 revenue target is set at 36 percent higher than the approved FY2025 budget, with domestic revenue expected to contribute approximately 1.11 billion USD, while external sources are projected to bring in around 72 million USD.
As of November 17, collections for the current fiscal year reached 719 million USD, leaving a substantial gap of 160 million USD that remains outstanding.
In its report, the committee reviewed revenue forecasts and received presentations from various key agencies and State-Owned Enterprises (SOEs).
Several agencies displayed mixed revenue performance, prompting the Finance Ministry and the Liberia Revenue Authority (LRA) to propose new tax legislation and advocate for the transfer of unproductive SOE revenue streams to the LRA.
High on the committee’s agenda was the Asset Recovery Fund, which is in a precarious position despite expectations of generating 10 million USD.
Furthermore, the report highlighted inconsistencies in financial reporting from the Liberia Petroleum Refining Company (LPRC), leading the committee to demand the submission of overdue financial statements.
While the Liberia Maritime Authority is on track to meet its 14-million-dollar revenue target, the committee has rejected the notion of increasing assessments in light of fluctuating global shipping risks.
Many other SOEs, including the National Port Authority and various regulatory bodies, were criticized for submitting incomplete financial reports.
The committee has mandated that these agencies refile to ensure accountability and transparency.
The report explicitly warns that achieving the 2026 revenue target will be an uphill battle unless there are substantial improvements in enforcement mechanisms, compliance, and overall reforms within underperforming SOEs.
Urgent action is recommended, including the passage of new tax laws, enhanced accountability measures, and penalties for inaccurate or tardy financial submissions.
The committee noted several unrealistic revenue expectations from agencies, including the LPRC, National Port Authority (NPA), National Fisheries and Aquaculture Authority (NAFAA), Liberia Telecommunications Authority (LTA), Liberia Marketing Association (LIMA), and the Road Fund.
Conversely, they observed that both the Lottery Authority and Immigration Services possess the potential to generate higher revenue than currently projected.
Additionally, prospective oil and energy agreements awaiting legislative approval might provide unanticipated revenue boosts in the coming fiscal year.
To address these issues, the committee’s recommendations encompass fast-tracking essential tax legislation, consolidating SOE revenue collection responsibilities under the LRA, mandating regular audits, enhancing revenue forecasting methods, and fortifying coordinated efforts through the establishment of a Revenue Mobilization Council.
While the committee asserts that the ambitious 1.2 billion-dollar revenue target is attainable, it affirms that successful outcomes hinge on comprehensive reforms, stringent oversight, and realistic financial projections to guide the budgetary process.
Failure to act on these recommendations could result in significant budgetary shortfalls in FY2026. As the government prepares to finalize the budget, the urgency of these reforms cannot be overstated, underscoring the necessity for a collaborative approach to strengthen Liberiaโs fiscal landscape.
