CDC Chairman Atty. Jango Augustus Kowo
By: Trokon Wrepue – trokon1992seokin@gmail.com
MONROVIA – The Congress for Democratic Change (CDC) has raised serious concerns over the Government of Liberia’s Draft Fiscal Year 2026 National Budget, warning that the proposed $1.211 billion plan is overly ambitious, relies on speculative revenues, and exposes the country to significant fiscal and implementation risks.
In a statement from its Temporary National Headquarters in Plumkor, Sinkor, the CDC called on the Speaker of the House of Representatives, members of the Legislature, and the Liberian public to act decisively to ensure fiscal prudence and protect the country’s economic stability.
The party demanded that the draft budget be returned to the Executive Branch for immediate revision, emphasizing that future budgeting should be anchored on confirmed core revenues and credible financing assumptions.
The CDC’s review of the FY2026 draft budget raised concerns about the fragility of the resource envelope. While core domestic revenue is projected at $940 million, excluding a $200 million contingent inflow from ArcelorMittal’s signature bonus and asset recovery, the party warned that reliance on such one-off revenues introduces a high level of uncertainty.
With FY2025 non-tax revenues already falling short of expectations, the CDC noted that ambitious revenue targets for 2026 could be difficult to achieve without robust and aggressive tax administration strategies.
The party also highlighted risks surrounding the Public Sector Investment Program (PSIP), which projects $281 million in capital spending but largely depends on the receipt of the $200 million AML signature bonus.
Many of the proposed PSIP projects, the CDC argued, are not fully developed in terms of design, procurement, or execution plans. This raises concerns that significant allocations could be directed toward projects that are not ready for implementation, reducing the potential for value for money and undermining long-term economic benefits for Liberians.
Another major concern raised by the CDC is the growing wage bill, which the party estimates at $352 million when factoring in $26 million categorized as “Other Compensation.” This figure represents nearly 38 percent of core domestic revenue, yet it does not reflect meaningful increases in salaries for frontline civil servants, including nurses, teachers, midwives, and security personnel.
The CDC stressed the importance of transparency, calling for detailed disclosure of beneficiaries and clear classification of all compensation to allow proper monitoring by the government and international partners.
The draft budget also includes $230 million for debt servicing, with a new $55 million interest payment and increases in domestic liabilities. While the CDC acknowledged the government’s efforts to maintain fiscal integrity, it emphasized that all debt projections must be consistent with the findings of the General Auditing Commission and should be carefully monitored to prevent excessive borrowing that could undermine Liberia’s financial stability.
The CDC warned that if contingent and speculative revenues do not materialize, midyear budget shortfalls could delay critical projects such as road construction, hospital rehabilitation, energy expansion, and teacher-training programs. Such delays could erode donor confidence and reverse recent gains in fiscal credibility and reform momentum.
In response, the CDC urged the government to adopt conservative budgeting practices, excluding speculative revenues from the baseline and allowing one-off inflows, such as the AML signature bonus, to be appropriated only through supplementary budgets after legal receipt and certification.
The party also called for these windfall revenues to be reserved exclusively for capital investments rather than recurrent spending, ensuring that non-recurring funds are used to build sustainable infrastructure and services.
The CDC further recommended that a PSIP readiness report be published within 30 days to outline project costs, sources of funding, and timelines, while also advocating for an independent debt sustainability and fiscal risk assessment within 45 days.
The party emphasized that payroll growth should be linked to verified revenues and called for accelerated reforms at the Liberia Revenue Authority, with quarterly progress reports tied to conditional budget disbursements.
Describing the FY2026 draft budget as “a budget built on sand,” the CDC warned that inflated revenue projections and over-reliance on contingent windfalls could jeopardize Liberia’s economic stability.
The party characterized the draft plan as one that may pay salaries but is unlikely to create jobs, reduce food prices, or restore investor confidence, ultimately benefiting politicians more than the Liberian people.
The CDC Legislative Caucus reaffirmed its commitment to work with the Executive, civil society, and international partners to produce a credible, transparent, and implementable budget grounded in revenues that Liberia can realistically collect.
The party concluded that passing the current draft budget without revision would be perilous and called for it to be returned, reframed, and rebuilt on solid financial ground.
