MONROVIA – The Liberia Revenue Authority (LRA) has reported a troubling revenue shortfall of US$22.03 million for the first quarter of Fiscal Year 2025, contradicting an earlier House Committee estimate of US$17.8 million. According to the LRA, total collections stood at US$179.63 million, falling short of the government’s projected target of US$201.66 million by 11 percent.
The shortfall reflects widespread underperformance across both tax and non-tax revenue categories. The Domestic Tax Department reported a 14 percent gap in collections, primarily due to low returns on Personal Income Tax, administrative fees, and other income-related taxes. While taxes on international trade narrowly missed the target, collecting US$52.3 million against a goal of US$53.28 million, the overall fiscal performance remains below expectations.
Despite year-to-date collections totaling US$336 million as of May 31, slightly above the LRA’s internal projection of US$334 million, a broader target of US$343 million still revealed a shortfall of US$6.8 million. These figures underscore deeper inconsistencies in the country’s revenue performance and raise questions about the accuracy and sustainability of budget projections.
Speaking at the Capitol on July 9, House Chief Clerk Madam Mildred Sayon presented a report confirming the Ministry of Finance and Development Planning’s assessment, which pegged the shortfall at US$17.85 million or 8.9 percent. She noted that revenue-generating agencies were required to submit financial reports classified as assets, which were analyzed by the Finance Ministry, the LRA, and legislative budget experts during cross-examination sessions. According to her, each institution was given ample opportunity to defend its report.
However, beyond the numbers, systemic compliance issues remain. The Bureau of State Enterprises (BSE) reported that only 11 out of 20 public entities submitted revenue reports, and merely four met the legal reporting timeline. Of the US$84.1 million projected from State-Owned Enterprises (SOEs), actual collections stood at only US$45.2 million. Out of US$12.37 million in expected quarterly contributions, just five SOEs remitted US$8.49 million.
The Liberia Revenue Authority cited major revenue risks, including noncompliance from large corporations such as Bea Mountain, which reportedly failed to pay mandated road fund contributions. According to LRA Commissioner General Thomas Doe Nah, “Noncompliance, especially from entities like Bea Mountain and several SOEs, has a significant ripple effect on our overall fiscal performance.”
In a statement issued recently, Deputy Finance Minister for Budget, Tanneh Brunson, noted that “several key government institutions are either withholding revenues or failing to remit internally generated funds into the Consolidated Fund, which is a direct violation of the Public Financial Management Law.”
The Ministry of Commerce managed to collect 91.7 percent of its projected domestic revenue target, yet the broader fiscal picture remains bleak. The Judiciary, along with the National Elections Commission, Ministry of Health, Ministry of Education, and Ministry of Post and Telecommunications, was cited for noncompliance in submitting reports on internally generated revenues. Additionally, the National Road Fund was flagged for failing to deposit significant revenue into the designated account.
Civil society leaders have also weighed in. Eddie D. Jarwolo, Executive Director of NAYMOTE, called for urgent reforms. “To address the budget shortfall, the government should promote domestic revenue generation, cut down on huge benefits and salaries of government officials, including the President, Vice President, lawmakers, judges, ministers, and heads of SOEs, and redirect those funds into critical sectors,” Jarwolo said. “Overall, cut costs, look into new sources of income, and allocate resources strategically. Avoid spending the meagre funds on ventures that yield no economic returns or dividends.”
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