Liberia: Lawmakers Warn Fy2026 Budget Risks Becoming ‘Not Achievable’

The House of Representatives has summoned all State-Owned Enterprises (SOEs) to appear before the full Plenary next Tuesday, following a blistering preliminary report from the Ways, Means, and Finance (WMF) Committee that revealed inconsistent reporting, unrealistic revenue forecasts, and chronic underperformance among key institutions responsible for funding Liberia’s Draft FY2026 National Budget.

The WMF Committee unveiled its findings Thursday after several days of intensive revenue hearings with the Ministry of Finance and Development Planning (MFDP), the Liberia Revenue Authority (LRA), and over a dozen SOEs. The committee’s evaluation raises serious concerns about the viability of the government’s US$1.2 billion revenue goal for FY2026–an unprecedented 36 percent increase from the FY2025 approved budget of US$880.6 million.

According to the report, domestic revenue is projected at US$1.11 billion, while external resources are estimated at US$72 million. However, as of November 17, actual FY2025 revenue collection was only US$719 million, leaving more than US$160 million uncollected with weeks remaining in the fiscal year. The committee warned that without immediate corrective action, the FY2026 target risks becoming “more aspirational than achievable.”

“This committee is deeply concerned about the widening gap between projections and actual collections,” the report stated. “We cannot continue to base national planning on figures that are not supported by historical performance, compliance behavior, or institutional capacity.”

SOEs Under Fire for Poor Reporting and Dubious Projections

The Liberia Petroleum Refining Company (LPRC) received some of the committee’s strongest criticism for inconsistent financial disclosures. The company reported an FY2025 assessment of US$5 million but showed remittances totaling only US$799,139, a discrepancy lawmakers found unacceptable. For FY2026, LPRC increased its projection to US$11.2 million, although the committee said it provided no supporting documentation. It ordered LPRC to submit all outstanding levy statistics and financial statements by November 28.

The National Port Authority (NPA) was also criticized for an “incomplete and inadequate” presentation. The entity did not provide its FY2024 and FY2025 financial statements, which the committee stated are essential for evaluating performance and credibility.

The Liberia Maritime Authority (LiMA), National Fisheries and Aquaculture Authority (NAFAA), and the Liberia Telecommunications Authority (LTA) also submitted projections they considered to be “overly ambitious.” LiMA, for instance, resisted MFDP’s recommendation to raise its revenue assessment to US$20 million, despite uncertainties in the global market affecting maritime income.

Enforcement Failures Affecting Revenue Compliance

The report pointed to weak enforcement of revenue laws as a major obstacle to meeting projections. It criticized what it called a “relaxation” by the Ministry of Justice in empowering the LRA to garnish bank accounts of noncompliant SOEs–an enforcement tool the revenue authority is legally entitled to use. The committee argued that unless SOEs are compelled to remit statutory fees, revenue mobilization will remain undermined.

“When SOEs repeatedly refuse to remit what they owe and there is no enforcement, revenue mobilization becomes impossible,” the report said.

It recommended stronger enforcement measures, strict reporting deadlines, penalties for delays, and streamlined oversight mechanisms.

Unexpected Revenue Strength

Despite widespread concerns, the WMF Committee pointed out some positives. The Liberia National Lottery Authority (LNLA) and the Liberia Immigration Service (LIS) demonstrated strong potential for previously untapped revenue. LIS, especially, showed it could boost earnings through fees, penalties, and administrative services, resources the committee advised should be included in the FY2026 budget.

“Where institutions can do more, they must do more,” the committee said. “We cannot allow potential revenue sources to remain idle when the country needs every available dollar.”

Committee Pushes for Major Legislative and Policy Reforms

To prevent recurring shortfalls, the WMF Committee suggested a series of legislative and administrative reforms aimed at increasing revenue collection, enhancing compliance, and ensuring accountability across SOEs. It also emphasized the importance of cautious, risk-adjusted revenue forecasts to match projections with achievable trends.

“The US$1.2 billion target is not impossible, but it requires discipline, transparency, and collaboration across all institutions,” said WMF Chairman P. Mike Jurry. “If SOEs do not comply, the entire national budget remains vulnerable.”

Plenary Summons SOEs

Following the report’s submission, the House Plenary voted unanimously to summon all SOEs to appear on Tuesday, December 2. They are expected to respond to discrepancies highlighted during the hearings, defend their FY2026 projections, and submit all missing financial records. Each institution must appear with its legal team to explain why it should not be held in contempt for failing to meet reporting requirements.

Lawmakers state the hearings will address revenue leaks, administrative inefficiencies, and institutional failures that undermine the credibility of Liberia’s budget process.

By Liberian Investigator.