MONROVIA, Liberia – Finance and Development Planning Minister Augustine Kpehe Ngafuan has outlined a proposed US$1.539 billion national budget for fiscal year 2027, projecting that domestic revenue will finance approximately 94 percent of the government’s spending plan as the administration seeks to expand public investment, improve essential services, and accelerate implementation of the ARREST Agenda for Inclusive Development.
Speaking at a special press briefing at the Ministry of Information on Monday, November 9, 2026, Minister Ngafuan said the proposed budget represents an increase of approximately 18 percent over the approved 2026 national budget.
The Finance Minister said the spending plan was presented to the House of Representatives on November 6, on behalf of President Joseph Nyuma Boakai, and is now subject to legislative scrutiny, public hearings, and approval.
Operating under the theme, “A Growing Budget for Bigger Impact: Accelerating the Implementation of the ARREST Agenda for Inclusive Development,” Ngafuan said the government intends to translate increased public resources into measurable improvements in the lives of Liberians.
He emphasized that the size of the proposed budget must be matched by responsible spending, stronger procurement practices, and accountability across government institutions.
Domestic Revenue to Finance 94 Percent
Providing details of the financing structure, Ngafuan disclosed that approximately US$1.447 billion, representing 94 percent of the proposed budget, is expected from domestic resources, including an estimated US$55 million carried forward from 2026.
The remaining US$92 million, equivalent to 6 percent, is projected to come from external budget support.
He reported that Liberia crossed the US$1 billion mark in domestic revenue collection by September 2026, describing the achievement as the first time the country has generated more than US$1 billion in domestic revenue within a single year.
According to him, the projected revenue performance reflects increased economic activity, improved tax compliance, and ongoing reforms in revenue administration.
The government has also identified US$40 million as contingent revenue, meaning related expenditures will only be released if the anticipated funds are realized. Basic salaries, debt obligations, social benefits, and the Public Sector Investment Program will not be affected by this arrangement.
Beyond direct budget support, development partners are expected to provide approximately US$195.4 million for off-budget development programs.
Health and Education Receive Increased Funding
The proposed budget places significant emphasis on healthcare, with the health sector receiving US$135.83 million, compared with US$110.9 million in 2026.
The increase of approximately US$24.93 million is expected to support healthcare staffing, medical equipment, and the full operationalization of the New Redemption Hospital in 2027.
The proposal also includes US$5.3 million for improvements at the John F. Kennedy Medical Center, covering initial support for new facilities, cancer treatment services, dialysis capacity, and other critical medical equipment.
Additional allocations include US$1.3 million for the Jackson F. Doe Memorial Hospital, US$1.5 million for ongoing renovations at C.H. Rennie Hospital, and US$800,000 to strengthen the country’s response to Hepatitis B.
The government has further proposed an initial US$1.23 million to commence construction of a National Children’s Referral Hospital.
Education is projected to receive approximately US$163.55 million, representing an increase of about US$20 million over the previous year’s allocation.
Of that amount, US$7 million is earmarked for continued renovation, furnishing, and equipping of the University of Liberia. Other beneficiaries include the Monrovia Consolidated School System, Grand Kru Technical College, Booker Washington Institute, and Margibi University.
The proposed spending plan also provides US$800,000 for a secure examination-printing facility for the West African Examinations Council and US$2.5 million for expanded school feeding and school health programs.
Salary Adjustments Target More Than 17,000 Workers
In a major announcement affecting public sector employees, Ngafuan disclosed that the 2027 budget proposes compensation-related interventions expected to benefit more than 17,000 people through salary adjustments and recruitment, including the regularization of volunteers.
He said the government has been implementing a phased approach since 2025 to address salary disparities and improve conditions of service across public institutions.
The proposed measures include salary adjustments for qualified teachers in government schools, 358 health workers serving across 146 facilities and health offices, and 1,934 police officers as an initial step toward aligning compensation with their respective ranks.
The Liberia Drug Enforcement Agency is also expected to benefit from a proposed 15 percent salary increase for 616 officers.
Additional adjustments are planned for selected civil service directors, deputy directors, and assistant directors.
Ngafuan said the Civil Service Agency would subsequently provide detailed information on the salary adjustment framework and the categories of beneficiaries.
The government has also acknowledged nearly US$60 million in accumulated employer contributions owed to the National Social Security and Welfare Corporation (NASSCORP).
The proposed approach provides for the statutory 6 percent employer contribution while addressing outstanding arrears through a gradual repayment arrangement.
US$142 Million Proposed for Infrastructure and Basic Services
Infrastructure development remains another major component of the proposed spending plan.
Ngafuan disclosed that US$142.56 million has been proposed for infrastructure and basic services, including US$49.1 million through the National Road Fund and counterpart financing for ongoing road projects.
Among the priority corridors identified are Karloken–Fish Town, Sanniquellie–Loguatuo, and Fish Town–Kelipo.
He said the government intends to prioritize ongoing projects and provide the necessary counterpart funding to move critical infrastructure investments toward completion.
The electricity sector is also expected to receive substantial attention, with US$40 million proposed for expanding power generation and distribution capacity.
The allocation is expected to support the Liberia Electricity Corporation’s efforts to improve electricity access and reduce commercial losses through the introduction of smart metering.
Other proposed investments cover rural renewable energy, water supply, sanitation, and climate resilience.
Agriculture will also benefit from investments in mechanization hubs, agricultural value chains, and the recruitment of technical and extension personnel to improve production and support farmers.
US$2 Million for Motorcyclists, US$3 Million for Lone Star
The proposed budget also identifies youth empowerment, employment opportunities, and sports development as key areas of government intervention.
Ngafuan announced that US$2 million has been proposed to empower commercial motorcyclists, including support for the construction of designated rest stops.
The allocation is intended to improve the working conditions and economic opportunities of motorcycle operators, many of whom depend on the transportation sector for their livelihoods.
The government has also proposed US$3 million for the national football team, Lone Star, while US$650,000 is earmarked to engage former national team players in youth sports development.
Additionally, the draft budget provides for the continued recruitment of 1,400 young Liberians into the country’s security sector, comprising 800 recruits for the Armed Forces of Liberia and 600 for the Liberia National Police.
Gender Ministry Allocation Rises by 77 Percent
Women, children, and vulnerable populations are expected to receive increased attention under the proposed spending plan.
According to Ngafuan, the allocation to the Ministry of Gender, Children and Social Protection is projected to increase by 77 percent.
The additional resources are intended to strengthen social protection programs, address sexual and gender-based violence, support safe homes, and provide assistance to vulnerable individuals and households.
The proposal also includes support for communal farming initiatives targeting rural women and programs designed to strengthen women-led businesses.
Tourism has also been identified as an area with potential for employment and private-sector growth.
The Liberia National Tourism Authority’s proposed allocation is expected to rise from US$4.07 million to US$7.72 million, with support directed toward tourism promotion and destinations such as Providence Island and Robertsport.
Debt Obligations Rise to US$275.5 Million
Despite the projected growth in government revenue, the Finance Minister cautioned that rising debt obligations will consume a significant portion of available resources in 2027.
He disclosed that debt servicing and related obligations are projected to increase from approximately US$232 million in 2026 to US$275.5 million next year, representing an increase of about US$43.5 million, or nearly 19 percent.
The proposed budget includes approximately US$12 million for servicing financing obtained from the African Export-Import Bank (Afreximbank) for the Roberts International Airport road project, alongside payments to other creditors, including the World Bank and African Development Bank.
Ngafuan said meeting these obligations is necessary to protect Liberia’s financial credibility and maintain confidence among development partners and creditors.
He, however, stressed the need for responsible borrowing and stronger oversight to ensure that loans contracted for development projects produce tangible benefits.
Accountability Institutions Receive Increased Funding
The government has proposed increasing funding for transparency and accountability institutions from approximately US$37.9 million to US$49.13 million.
The proposed increase is expected to strengthen institutions responsible for public financial oversight, including the General Auditing Commission and anti-corruption agencies.
The government also plans to operationalize six additional county treasuries in 2027, bringing the total number to ten facilities serving all 15 counties.
On tax reform, Ngafuan clarified that the proposed Value Added Tax framework will exempt rice and keep petroleum products outside the VAT system, although petroleum will continue to attract other applicable taxes, fees, and levies.
He said public education and clear communication would be important to the implementation of the proposed tax changes.
Government Proposes Changes to Procurement Procedures
To improve budget execution, the Finance Minister announced plans to introduce adjustments to government procurement procedures.
Beginning in January 2027, spending entities are expected to have the option of using 25 percent of their budgetary allocations to purchase used vehicles, subject to standards and guidelines to be issued by the General Services Agency.
The government also intends to permit preliminary procurement activities before the beginning of a new fiscal year, although binding contracts would remain dependent on the passage of the national budget.
Multi-year contractual commitments would also require confirmation from the Ministry of Finance and Development Planning that the necessary funding is available.
Ngafuan said these measures are intended to improve planning, minimize delays, and ensure that public resources are used more efficiently.
Public Urged to Scrutinize Draft Budget
Concluding his remarks, Ngafuan acknowledged the contributions of President Boakai, government spending entities, development partners, and the technical team at the Ministry of Finance and Development Planning in preparing the proposed budget.
He also called on civil society organizations, businesses, the media, and ordinary Liberians to examine the spending proposals and participate constructively in the legislative review process.
The proposed US$1.539 billion budget now faces consideration by the National Legislature, where lawmakers will examine government priorities, projected revenues, expenditure commitments, and the distribution of public resources before deciding whether to approve the spending plan for fiscal year 2027.
