By By: The People News Online
The opposition Coalition for Democratic Change (CDC) has launched a sharp, full-scale critique of the Government of Liberia’s Draft FY2026 National Budget, calling it “excessively ambitious, dangerously unrealistic, and a threat to Liberia’s fiscal stability.”
In a detailed statement issued Tuesday, the party urged the Speaker, the Legislature, and the Liberian people to reject the $1.211 billion draft and return it to the Executive for urgent revision.
“This budget is built on sand,” the CDC declared. “It rescues politicians — not the people.”
CDC: Budget Relies on Speculation, Not Certainty
After what it describes as a rigorous line-by-line review, the party says the draft is propped up by volatile and non-recurring revenue expectations — particularly the heavily contested US$200 million ArcelorMittal (AML) signature bonus and unverified asset recovery claims.
Without these uncertain inflows, Liberia’s core domestic revenue stands at $940 million, only marginally above FY2025 collections — a level the CDC says is “ambitious but achievable” only through strong tax administration.
However, the CDC warns that the real danger lies in building a national budget on revenue that may never materialize.
PSIP Projects “Colorful but Unready”
The party raises major red flags over the US$281 million Public Sector Investment Plan (PSIP), saying it depends almost entirely on the AML signature bonus — whose payment timeline is “highly uncertain.”
Most of the PSIP projects, the CDC argues, lack design blueprints, procurement readiness, or implementation plans.
“These are colorful projects waiting to fail,” the statement reads.
The CDC expresses alarm that although the wage bill is listed at US$329 million, the true figure climbs to US$352 million when a mysterious new line item — “Other Compensation” (US$26 million) — is added.
The party demands full disclosure:
- Who is receiving this money?
- Which agencies benefit?
- Why is this line hidden outside the normal wage category?
The CDC says the wage bill has grown, but teachers, nurses, midwives, and security officers — the lowest-paid civil servants — have seen no improvement, despite the former CDC administration allocating US$5 million to close pay gaps before leaving office.
The FY2026 budget also includes a jump in debt servicing obligations — up US$70 million from last year.
While acknowledging the need for Liberia to honor its debts, the CDC insists the government must prove all listed liabilities align with the GAC’s domestic debt audit and reflect transparent borrowing practices.
Roads and bridge projects may stall
- Hospital and school rehabilitation could collapse
- Teacher training and energy expansion may be frozen
- The government could be forced into mid-year emergency recasts
Worst of all, donor confidence — already fragile — could erode further.
CDC Issues Eight Demands to the Government
The CDC outlined sweeping correctional actions it wants implemented immediately:
- Send the FY2026 budget back to the Executive for a conservative recast.
- Remove all speculative and contingent revenues from the baseline.
- Allocate AML’s US$200 million signature bonus ONLY through supplementary budgets after legal confirmation.
- Ring-fence all one-off inflows strictly for capital investment, not salaries or rent.
- Publish a PSIP readiness report within 30 days.
- Conduct an independent debt sustainability assessment within 45 days.
- Increase compensation transparency and tie payroll growth to real revenue.
- Accelerate LRA reforms and publish quarterly progress updates.
The CDC argues that failing to implement these measures puts Liberia at risk of fiscal backsliding.
A Budget That “Cannot Create Jobs or Reduce Prices”
The party’s conclusion is blunt:
“This is not a rescue plan but a risky plan. It pays salaries but cannot create jobs, reduce food prices, or restore investor confidence.”
The CDC Legislative Caucus says it stands ready to collaborate with the government and partners — but insists the FY2026 budget must be rebuilt “on solid ground, not fantasy revenues.”
“Return the budget. Reframe it. Rebuild Liberia on solid ground.”
