The National Budget of Liberia revenue portion is basically categorized into two parts inclusive of a domestic revenue component and an external revenue component. At the initial submission of the Fiscal Year 2024 National Budget, the resource envelope was projected at US$692,408, 827 of which tax revenue accounts for 540,200,000 representing 78 percent and nontax revenue of US$109,800,000 accounting for 16 percent of the budget.
However, when the budget was finally signed by President Joseph N. Boakai on May 8, 2024, due to adjustments to the revenue envelope, a total of US$738,859,827 budget was passed instead of the initially proposed $692,408,827. This adjustment represented an increase of US$46,451,000.
External revenue was projected to account for 42,400,000 which represents 6 percent of the total revenue envelope estimated. But recent reports gathered by this paper from the Liberia Revenue Authority (LRA) suggests that this external revenue component of the national budget has so far underperformed as the budget period is fast elapsing.
It can be recalled that the LRA in a release said it had successfully collected US$513.8 million or 74% of the total domestic revenue envelope of US$694.4 million, representing a 12% increase in domestic revenue compared to the same period last year. The collected amount is US$54.3 million more than the year-to-date revenue target.
“The 2024 National Budget target is set at US$738.86 million, with US$696.4 million (pre-recast) expected from domestic tax collection and US$42.4 million projected from external support. So far, no contribution has been received from external sources, meaning that all revenues collected by the LRA to date have been generated domestically by compliant taxpayers,” the release said.
With $513.8 million already collected against the pre-recast annual domestic revenue target of $696.4 million, the LRA said it remains on course to meet its 2024 revenue goal.
The revenue body said this significant milestone reflects the steady progress in domestic revenue collection under the leadership of Commissioner General Jallah, whose strategic vision has positioned the LRA as a key player in driving national growth through improved revenue mobilization.
The release said since Jallah took over, the LRA has consistently surpassed its monthly revenue collections compared to the same period in 2023, and is committed to reaching the one billion mark in the coming years.
The LRA acknowledged not only the commitment of taxpayers but also the invaluable contributions of its dedicated management team, hardworking employees, and external stakeholders. These efforts, it said, are further strengthened by strong partnerships with various government Ministries, Agencies and Commissions (MACs) involved in revenue collection. This collective effort is aimed at bolstering the government’s capacity to increase fiscal spending on public services, infrastructure, and other national priorities, thereby advancing Liberia’s development agenda.
“We are encouraged by the progress we’ve made so far,” CG Jallah said, “but we are not complacent. We remain focused on achieving even greater results in the final months of this year. I commend every taxpayer, our staff, and all our revenue generating counterpart entities, partners and stakeholders for their tireless contributions. Together, we are building a stronger foundation for Liberia’s future.”
In light of the recent barrage of negative propaganda, misinformation, and disinformation targeting the LRA and its leadership, Jallah was quoting in the release as saying, “I urge our staff, counterpart entities, stakeholders, and the general public to remain focused on our shared commitment to increasing domestic revenue. It is essential that we do not allow these distractions to undermine our unity, our trust in one another, or our commitment to the values that define us.
He said these external forces seek to sow doubt and disrupt the important work the LRA is doing for the country, and strongly encouraged the public to verify any questionable information through reliable internal sources.
The LRA said it is committed to providing a conducive environment for compliance, simplifying tax processes, and ensuring transparency in its operations. And as part of its ongoing efforts, the Authority continues to invest in digitization initiatives to streamline tax payments, reduce bottlenecks, and close revenue leakages.
The entity meanwhile used the release to extend profound appreciation to all taxpayers across the country for their unwavering commitment to fulfilling their tax obligations, which is playing a pivotal role in advancing the country’s revenue collection efforts.
The LRA’s commendation of taxpayers serves as a prelude to the National Taxpayer Appreciation events scheduled for November, where the country’s highest and most compliant taxpayers will be honored for their invaluable contributions to Liberia’s progress.
