Finance Minister, Sheku Ahmed Fantamadi Bangura, has made it clear that the Ministry of Finance will enforce strict adherence to the projects and programs outlined in the 2024 budget, emphasizing the importance of fiscal responsibility.
“To achieve the deliverables of the Big Five Game Changers, MDAs [Ministries, Departments, and Agencies] must implement only policies, programs, and projects that have been agreed upon in this Budget,” Minister Bangura declared.
During his presentation of the FY2024 budget speech to Parliament on November 10, 2023, under the theme “Restoring Macroeconomic Stability while Protecting the Poor and Vulnerable,” Minister Bangura highlighted the economic performance of Sierra Leone in 2023 and the key priorities set out in the budget.
In his review of 2023, Minister Bangura noted that the Sierra Leone economy initially rebounded from the COVID-19 pandemic with a growth rate of 4.1 percent in 2021. However, it experienced a slowdown in 2022, with growth at 3.5 percent, and is projected to grow moderately by 2.7 percent in 2023. He attributed this to global economic uncertainty and challenges like high food and energy prices.
Despite facing fiscal constraints, the Government continues to fund important initiatives such as the Free Quality School Education (FQSE) Program and key infrastructure projects, including road, water, energy, and other development priorities.
The Minister revealed that total domestic revenue collected in the first half of 2023 amounted to NLe 166.4 million, while grants received from development partners reached NLe 1.1 billion. The World Bank is expected to disburse $65 Million as budget support in December 2023, bringing total grants to an estimated NLe 3.7 billion, equivalent to 4.7 percent of GDP in 2023.
Key priorities in the 2024 budget include improving the management of public finances, enhancing monetary and exchange rate policies to reduce inflation, stabilize exchange rates, lower living costs, and support the Feed Salone Program to enhance agricultural productivity and achieve food self-sufficiency.
Minister Bangura informed his audience that the Government Wage Bill is projected to increase to NLe 6.5 billion (6.4 percent of GDP) in 2024, up from NLe 5.3 billion (6.7 percent of GDP) in 2023. The increase is due to the recruitment of healthcare workers, staff by sub-vented agencies, tertiary education institutions, military personnel, Correctional Services employees, Fire Force Officers, and teachers.
The revenue and expenditure measures in the budget are intended to create fiscal space for financing the Big Five Game Changers and the Feed Salone Program. Minister Bangura emphasized that sustainable financing of Government programs will reduce debt levels and complement the efforts of the Bank of Sierra Leone in lowering inflation and stabilizing the exchange rate.
Additionally, the budget outlines social safety nets to enhance the quality of life for vulnerable groups and various programs and projects to create job opportunities for women and youth, addressing the high cost of living. Total expenditure and net lending for 2024 are projected at NLe 23.5 billion, with recurrent expenditure at NLe 16.5 billion, and capital expenditure and net lending at NLe 7.1 billion.
The Government is allocating resources to various sectors, including NLe 1.1 billion to agriculture, NLe 3.0 billion to education, NLe 1.1 billion to health, and NLe 8.6 million to NaCSA for social safety nets. Additional allocations are directed to Water, Energy, Roads, Communications, and Technology. The allocations reflect the government’s commitment to addressing critical needs and priorities in these areas.
