PRESS RELEASE
BudgIT Sierra Leone Raises Concern over Viability and Priorities in 2025 National Budget
The total budget for 2025 is projected at NLe35.3 billion, a significant increase from NLe23.5 billion in 2024. Revenues are estimated at NLe27.9 billion, leaving a deficit of NLe7.5 billion, up sharply from NLe2.6 billion in 2024. Domestic revenue is expected to contribute NLe18.9 billion, with income tax being the largest source. External grants of NLe9.0 billion, including NLe2.1 billion from the World Bank and European Union, will supplement revenue.
The budget reflects some strategic priorities, but key sectors critical to the nation’s development face glaring underfunding:
Agriculture: Allocated NLe1.3 billion (8% of the budget), falling short of expectations for a flagship program aimed at achieving food security under the ‘Feed Salone’ initiative.
Health: Receives NLe1.5 billion (9% of the budget), far below the 15% Abuja Agreement target. This allocation threatens the nation’s ability to build a robust health sector.
Education: The largest allocation, NLe3.4 billion (20% of primary expenditure), lacks sufficient detail for tracking program implementation.
Youth Affairs and Infrastructure: The Ministry of Youth Affairs and Infrastructure projects are underfunded at NLe106.1 million and NLe669.4 million, respectively, raising concerns about addressing youth unemployment and advancing technological innovation.
Water and Sanitation: The sector receives only NLe118.8 million, which is insufficient to address urgent challenges in public health and basic amenities.
The projected budget deficit of NLe7.5 billion reflects the government’s reliance on borrowing to bridge the revenue gap. This has led to an escalating national debt, with interest payments projected at NLe7.4 billion in 2025, up from NLe4.1 billion in 2024. The wage bill, rising to NLe7.6 billion, exacerbates fiscal pressures, leaving limited room for investments in critical infrastructure and services.
While the government has made progress in stabilizing inflation, reducing it from 54.5% in 2020 to 20.2% in 2024, the benefits have yet to translate into improved living conditions for citizens. Revenue mobilization measures under the Medium-Term Revenue Strategy (MTRS) and Finance Acts of 2023 and 2024 aim to broaden the tax base, but increased taxation on essential goods risks burdening vulnerable populations.
BudgIT Sierra Leone calls on the government to:
Prioritize Key Sectors: Increase allocations to agriculture, health, and water resources to meet pressing national needs.
Reduce Borrowing and Manage Debt: Implement prudent fiscal policies to control the rising budget deficit and wage bill.
Enhance Transparency and Accountability: Ensure judicious use of public funds to maximize value for money and curb corruption.
Promote Economic Diversification: Focus on increasing exports and boosting foreign reserves to enhance economic stability.
The 2025 budget offers Sierra Leone an opportunity to address its developmental challenges. However, achieving the outlined ambitious goals will require the government to make deliberate efforts to increase revenue, optimise expenditures, and foster transparency in public financial management. Citizens must remain vigilant and demand accountability to ensure equitable and efficient use of public funds.
Signed
Brima Sesay
Country Manager, BudgIT Sierra Leone.