By 
Capitol Hill– Liberia’s former Finance Minister and current Senator Amara M. Konneh has welcomed the country’s first-ever $1 billion draft national budget but issued a stark warning that major misalignments, underfunding in key sectors, and structural weaknesses threaten its developmental impact.
In a detailed statement released Tuesday, Konneh applauded President Joseph Boakai and Finance Minister Augustine Ngafuan for achieving a historic fiscal milestone, calling it “a symbol of growing confidence in our public financial management systems.” But he stressed that the expanded FY2026 budget must be executed with discipline and strategic focus to avoid undermining Liberia’s long-term development agenda.
Konneh said he will provide a full, apolitical assessment to the Senate’s Ways, Means, Finance, and Budget Committee in the coming days—with particular emphasis on education and health.
A $1 Billion Budget with a $1.08 Billion Gap
The Senator’s most critical concern is the growing disconnect between the draft budget and the government’s own development blueprint—the ARREST Agenda for Inclusive Development (AAID).
According to Konneh, AAID identifies a $1.68 billion investment need across priority sectors for FY2026, but the draft budget allocates only $594 million. This leaves a funding gap of $1.08 billion, raising questions about the seriousness of Liberia’s stated development aspirations.
“The FY2026 budget cannot remain an incremental exercise,” he warned. “It must strategically align with AAID priorities if fiscal expansion is to translate into real outcomes for our citizens.”
Heavy Dependence on Donors
Konneh also flagged Liberia’s deepening reliance on external financing. Of the $594 million allocated to AAID sectors, $313 million comes from partners—exceeding the government’s domestic contribution of $281 million.
This imbalance, he argued, threatens national ownership and sustainability.
He urged the government to remain within the FY2025 spending envelope and channel new revenues into targeted investments—an approach he said could produce nearly $400 million in public investment next year if properly aligned with AAID priorities.
Lagging Human Development Sectors
Konneh’s analysis highlights several troubling budget trends:
- Social Development Services is the only sector showing negative growth (–4% CAGR), a decline he said leaves vulnerable populations behind. He referenced last week’s protest by disabled Liberians as evidence of unmet needs.
- Health and Education are growing at 10% and 8%, respectively—far below the overall budget growth of 18%. The Senator warned that this imbalance prioritizes capital-intensive sectors over human development.
Health: Low Per Capita Spending and Deep Inequities
The proposed $101.7 million health budget amounts to roughly $19.37 per capita, well below international benchmarks.
More troubling, Konneh said, is the county-level disparity: while Montserrado and Nimba receive over $6 per person, counties such as Gbarpolu, Grand Bassa, Sinoe, and Bomi receive under $1.50.
He also cited rising administrative costs and underfunding of preventive services.
“We must rebalance this budget,” he insisted, “to ensure equitable access and strengthen infrastructure across all counties.”
Education: Growth Without Equity
Although the education budget rises to $132.9 million, Konneh said growth remains overly centralized:
- The University of Liberia and payroll under Fiscal Affairs consume over 60% of the sector’s resources.
- Early childhood education receives just $20,000.
- Basic education allocations have declined since FY2024.
- The Monrovia Consolidated School System grows to $7.2 million, while rural counties receive less than $100,000.
- Vocational and technical education remains stagnant, weakening workforce competitiveness.
“Urban bias continues to favor Montserrado,” he said. “Most children outside Monrovia—especially in western and southeastern counties—are being left behind.”
Security Sector Expands Faster Than Social Services
The draft allocates $151.8 million to rule-of-law and security institutions—up 38% since FY2024. The Judiciary, Ministry of Justice, and NSA account for more than $117 million.
Konneh questioned the pace and structure of the increase.
“This expansion risks becoming bureaucratic overhead without delivering better justice, safety, or public trust,” he said, arguing that real security gains often come from investments in education, health, and jobs—not only policing and enforcement.
Payroll Growth With No New Workers
Despite no change in the civil service workforce (61,498 employees), total compensation rises by $13.4 million, a 4.2% increase. Konneh suggested that the rise requires scrutiny for efficiency and sustainability.
SOEs Not Properly Integrated Into Budget Framework
The Senator criticized the exclusion of state-owned enterprise (SOE) revenues from the main budget tables and noted that many SOEs—except the Maritime Authority and partially LPRC—failed to contribute to the FY2025 budget.
He called for stronger corporate governance and mandatory inclusion of SOE contributions to expand fiscal space and improve predictability.
Key Recommendations to the Legislature
Konneh outlined four major reforms:
- Realign the budget to AAID priorities through pillar-based tagging and systematic tracking.
- Strengthen domestic financing by setting minimum contribution thresholds for priority sectors.
- Integrate SOE revenues into the national budget to improve transparency and fiscal coherence.
- Enforce the Small Business Empowerment Act, which reserves 25% of procurement for Liberian-owned firms—a mandate the government has failed to uphold.
A Call for Unity and Discipline
Konneh concluded by urging bipartisan cooperation to “get the FY26 budget right,” emphasizing that Liberia’s future hinges on effective resource allocation.
“It doesn’t matter what side of the political spectrum you are on,” he said. “Every aspect of our country depends on making this budget work for Liberians—and I am confident we will do just that.”
