Liberia 2013-2014 Draft National Budget Analysis Public Sector Investment Plan (PSIP)

6/23/2013Liberia Institute of Public Opinion (LIPO) Senior Research Fellow/Policy Expert: Christian T. L. Peah - Executive Director, LIPO

TABLE OF CONTENT

Introduction ------------------------------------------------------------------------------------------------------------ 1

Summary ---------------------------------------------------------------------------------------------------------------- 2

Objective-----------------------------------------------------------------------------------------------------3

Methodology------------------------------------------------------------------------------------------------3

Administration ----------------------------------------------------------------------------------------------------------3

Municipal -----------------------------------------------------------------------------------------------------------------7

Transparency ------------------------------------------------------------------------------------------------------------8

Security and the Rule of Law --------------------------------------------------------------------------------9

Health Component ------------------------------------------------------------------------------------------11

Social Development Services ---------------------------------------------------------------------------14

Education-----------------------------------------------------------------------------------------------------16

Infrastructure and Basic Services--------------------------------------------------------------------------21

Industry and Commerce------------------------------------------------------------------------------------23

Public Investment--------------------------------------------------------------------------------------------

Donor Support to the Budget------------------------------------------------------------------------------25

GOL Projects------------------------------------------------------------------------------------------------- 25

Youth Fund-----------------------------------------------------------------------------------------------------

Observation---------------------------------------------------------------------------------------------------25

Recommendation--------------------------------------------------------------------------------------------26

Conclusion-----------------------------------------------------------------------------------------------------26

Introduction

The Agenda for Transformation (AfT) is the Government of Liberia sustainable and inclusive economic growth and development working tool which seeks to improve the quality of life for every citizen where inequality is to be drastically reduced, to achieve this goal the government developed the Pubic Sector Investment Plan (PSIP) a middle term project plan for delivering the Agenda for Transformation an Expenditure Framework of Government that should drive investments in the public sector for fiscal periods 2012-2013,2013-2014 and 2014-2015.

The projects layouts in the PSIP for fiscal 2013-2014 are in confirmative with section 8.1 of the Public Financial Management Act of 2009. The PSIP calls for sustained increase in investment over the medium term period of the national Budget by taking actions to identify savings in recurrent spending, moving on-off payments related to expenses from operational budget in order to finance projects with high social and economic returns on investment in line with fiscal rules.

The government has committed itself to provide financial support doing the Middle Term budget period to ministries and agencies to undertake their respective projects in the PSIP that earmarks priority in scope as defined by the Agenda for Transformation objectives. Funding for sector investment projects in addition to operational budget for each ministry and agency of government are to be accounted for through the delivery and tracking of project-level output indicators.

Projects within the PSIP framework were selected according to the Government of Liberia on the basis of economic and social returns on investment such as the impact on job creation, revenue generation and support to disadvantaged groups. According to government all projects within the PSIP were appraised on the basis of contribution to sector goals and objectives consistent with the Geographical distribution of investment and Project Readiness to be realized through funding sources such as the combination of core and contingent revenue sources.

The 2013-2014 draft national budget is not in line with the mandate of the government’s Public Sector Investment Plan, there are 134 projects listed in the PSIP at the cost of ,000,000USD that should be implemented, but the only 4,500,000USD is allotted to PSIP projects in the draft budget irrespective of the fact that government has made commitment to achieve economic and social returns on investment, such as job creations, revenue generation and support to disadvantaged groups by financing and implementing the PSIP projects.

Summary

The 2013-2014 draft national budget Grand total is 1,202,028,980USD. The Government revenue projection is 553,262,413USD to the budget while Donor revenue projection to the budget accounts for 648,766,568USD for project aid, direct budget support is 61,000,000USD, total donor support to the budget is 709,926,448USD. Donor support to the propose budget is for the implementation of 27 projects while government portion of the budget will be spend meanly on salaries and goods and services for the normal running of government. The Government of Liberia is under obligation to allot funding for projects in keeping with the Public Sector Investment Plan (PSIP). The PSIP for fiscal year 2013-2014 obligates government to budget for 134 projects at the cost of 194,451,479USD.

The Government of Liberia did not budget for the 134 projects in the PSIP that should be implemented this coming fiscal year (2013-2014) and as such the objectives of the PSIP and the Agenda for Transformation will not be achieved. The Government placed the projects of the PSIP in the draft budget but failed to provide the necessary funding which is a complete divergence from its responsibilities from the prospective of the national budget being a program driven one. The PSIP was crafted with the objectives to ensure that economic and social returns on investment, such as the impact on job creation, revenue generation and support to disadvantaged groups are achieve. Government also said all projects within the PSIP were appraised on the basis of contribution to sector goals and objectives consistent with the Geographical distribution of investment and Project Readiness. The Government of Liberia has committed itself to fund the PSIP.

The analysis of the draft national Budget by the Liberia Institute of Public Opinion (LIPO) has concluded that allocations by government in the draft budget did not capture the projects targeted for implementation for this fiscal period as requires by the PSIP.

The draft budget analysis has proven that the Ministry of Finance failed to provide funding for the 134 projects that should be funded in keeping with government obligation under the PSIP. The Ministry of Finance being the driver and custodian of the PSIP did not do due diligent to ensure government entities budgets are in confirmative with the PSIP as per their target projects for implementation for 2013-2014. All line ministries and agencies of government budget are not aligned with the PSIP projects document.

Objective

The objective of the draft national budget analysis is to determine the following:

Whether the draft national budget is in line with government Public Sector Investment Plan

Whether Funds for unspecified spending is in the budget Whether government is committed to implementing the PSIP To determine whether the national budget is program driven per government allocation Whether the open budget initiative information is actual realistic from the dimension of

the PSIP To determine whether the Ministry of Finance in the preparation of the budget ever

use the PSIP as guide To provide information for the budget debate process and Civil society for advocacy

purpose on the budget

Methodology

The analysis of the draft national budget by the Liberia Institute of Public Opinion (LIPO) was done by comparing the Public Sector Investment Plan with the draft national budget of 2013-2014. The Public Sector Investment Plan is Government of Liberia three years public investment initiative that contains projects/programs for implementation through government and donor budgetary support. The plan is structure into three fiscal period’s base on the Middle Term national budget framework of 2012-2013, 2013, 2014 and 201402015 fiscal years.

The budget was compared with the targeted PSIP project lines to match each line item in the draft national budget to determine whether those development programs in the PSIP match the allotment in the draft national budget.

Administration

The Administration sector of the draft national budget comprises of 12 Executive entities and the National Legislature, the entities are; Ministry of State, Finance, Planning and Economic Affairs, Civil Service Agency, General Services Agency, Ministry of Information and Tourism, Foreign Affairs and Liberia Geo-Information Services. This sector of the national budget is in the tone of 211,952,906USD; of this amount the Liberia Government has allotted 174,831,001USD while the donor community will be contributing 37,121,905USD to the budget. Donor support to the sector will go to towards project initiatives at the Ministry of Planning, Finance and Civil Service Agency.

The draft budget in regards to the administration sector is not aligned with the Public Sector Investment Plan (PSIP); Under the PSIP 13 entities in the sector should implement 27 projects at

the cost of 27,808,438USD for the fiscal year 2013-2014. The government did not allot funding for the implementation of PSIP project.

Table1.

Fiscal Year 2013-14 PSIP Project Per Budget Component and Entity

Code 01

Sector/Ministry& Agency Project Project Cost USD

FY 2013-2014

Administration GovernmentMinistry of States 1. Youth Empowerment

2. Strategic support of presidential outreach

3. Renovation of Executive Mansion

4. Public Library

5. Expansion of Program of Delivery Unit (PDU)

6. National Security Council Expansion

38,000,000

504,000

6,466,667

475,000

100,000

291,576

Not budget for

Sector Total 7,994,643Ministry Finance Fiscal policy Development and

integration

1. Modernization of MOF facilities

2. Infrastructure and logistical improvement of rural and urban ports or collection units

3. Establishment of county Budget offices

4. payroll decentralization across the country

5. Modernization of Voucher archive, ASU, Debt management archive

500,000

500,000

750,00

150,000

500,000

100,000

Not budget for

6. Medium term Budget monitoring and impact assessment

7. Automation and improvement of tax administration

support for the establishment of LMA budget committee and decentralization

national open budget project

support project management office ( PMO)

Total

250,000

2,050,000

200,000

250,000

750,000

4,800,000

106 Ministry of Planning PRS 2 implementation coordination, Monitoring and Evaluation, Coordination of international development

600,000

125,000

Liberia Rising 2030 (LDA)

goal: MDGs, MCC-TCP, IPAO and APRM

Capacity Building for project management and implementation in government institutions

Total

200,000

925,000

250,000

107 Civil Service Agency Revise and update 50 test materials annually, along with appropriate technology to be used for recruitment and promotion, and enhance service delivery and outreach to rural civil servants

Complete rollout and maintenance of HRMMMMMIS ( Biometric). Implement the medium Term pay and grade strategy as a component of HRMIS for Liberian public service. Asses the continues capacity building across government

Total

200,000

750,000

950,000

Not budget for

108 General Service Agency Reintroduce and implement asset registry system GOL wide

Develop GOL fleet Management Policy and set up asset Management system, to include a vehicle loan program, and ICT support to other entities, as well as guidelines for repairs and insurance

Total

536,000

500,000

1,036,000109 Ministry of Information ,

Culture& TourismRehabilitate Government Printing House (CPI)Total

150,000

150,00

Not budget for

111 Ministry of foreign Affairs Strategic Capacity Building and staff retention package

Renovation of Government properties at home and abroad

Construction/Acquisition of five embassies

Total

442,759

1,000,000

7,595,000

9,037,759

Not budget for

112 LISGIS Collect data, analyze, manage and disseminate routine statistical and associated geo-information (Agriculture &Crop survey, national accounts 2009/2010, LDHS, HIES, CPI & external trade)

Total Total

2,915,036

2,915,03627,808,438

Not budget for

The Municipal Government

The Municipal sector of the national budget is 34,765,059USD. The Government of Liberia allotted 27,656,834USD to the sector while donor will provide 7,108,225USD. Under the Municipal sector of the national budget which include the Ministry of Internal Affairs, Monrovia City Corporation and the Paynesville City Corporation, the PSIP mandates the government to implement at the Municipal level three projects for fiscal year 2013-2014; implementing Boundary harmonization, establish primary solid waste collection points in (50) selected communities. The draft national budget provides no funding for these three projects for 2013-2014 fiscal years.

The draft budget provides funding for only two municipal governments while the rest of the counties cities are not budgeted for. The cities of Monrovia and Paynesville are not the only cities in the country and as such it is not appropriate to leave other cities without funding in the in the draft budget.

Table 2.

Municipal Government FY 2013-2014Government

Ministry of Internal AffairsImplementing Boundary harmonization policy

Total

158,000

158,000

Not budget for

Monrovia City Corporation Establish primary solid waste collection points In (50) selected communities.

Total

720,000

720,00

Not budget for

Grand Total 878,000

Transparency and Accountability

The Transparency sector of the National budget consist of 9 organs of government; namely General Auditing Commission (GAC), National Elections Commission (NEC), Liberia Anti Corruption Commission (LACC), Public Procurement Concession and Contracts Commission (PPCC), Governance Commission (GC), Center for National Documents Records and Achieve (CNCDRA), Land Commission and Liberia Extractive Industrial Transparency Initiative (LEITI) . The total of 16,661,000 USD has been allotted by government while donor has committed 25,009,597 to this sector, both government and donor commitment account for 41,670,597 USD for Fiscal year 2013-2014. Donor support to the sector will go to three institutions; General Auditing Commission (GAC), National Elections Commission (NEC) and Land Commission.

The Government of Liberia under the Public Sector Investment plan (PSIP) for Fiscal year 2013-2014 planned to implement 19 projects in the Transparency sector of the budget. The total cost for financing these projects which are spread among 9 government institutions within the sector is 13,205,813USD. However, the draft national budget contains no money for any of the 19 projects that should be undertaking for fiscal year 2013-2014.

The Transparency sector of the draft budget like other sectors is not program driven, money allotted to each entity is meanly for salaries (allowance) and goods and services to run their respective institutions of government and not for the implementation of any of the 19 PSIP projects. For example the General Auditing Commission should conduct 140 comprehensive

and flash audits of ministries, agencies and state own enterprises for fiscal year 2013-2014 at the cost of 1,000,000USD. However, the GAC allotment per the draft national budget for 2013-2014 is 5,035,000USD. 4,600,000 is allotted for salary (allowance) while 360, 00USD for goods and services. There is no money allotted for audit for 2013/2014 fiscal year, the employees of GAC will just go to work signed in and signed out for 12 months without performing their constitutional and statutory mandates. If any audit will be conducted by GAC doing 2013/2014 it will be the auditing of only public corporations since these entities under the law are authorized to pay the GAC audit fees, the audit of these public corporations can not reach 140 and therefore the GAC for the second year in roll will not produce audit report (s).

Table 3

Transparency and Accountability

FY 2013-2014

General Auditing Commission

Conduct 140 comprehensive and flash audits of government M&As, public corporations and SOEs

Construct New GAC headquarters

IT data system and audit software

Total

1,000,000

6,000,000

434,144

7,434,144

Not budget for

National Elections Commission

Reconfiguration of voting precincts and IT/Data integration and updating

Civic Voters education, Public awareness and gender mainstreaming

Legal reform and voter registration

Total

735,000

250,000

375,000

1,360,000

Not budget for

Governance Commission Enhancing the National Vision process

Conduct a result based monitoring and evaluation institutions and processes as well as governance reform agenda, programs and

190,500

509,000

Not budget for

processes

Draft Local Government Act, carryout civic education to sensitize citizens of the benefits of decentralization

Total

190,50

890,000Public Procurement and Concession Commission

Recruit and build capacity of 115 people in public procurement management in the medium term

Total

214,000

214,000

Not budget for

CNDRA Equipping and staffing of 12 outstation offices

Collections, compilation of and storage of land records and Deeds

Total

864,000

305,000

1,169,000

Not budget for

Liberia Anti- Corruption Commission

Expansion of Legal Unit at LACC

Anti- corruptions education campaign

Consultative Dialogue with the Legislature

Total

688,254

275,500

60,000

1,023,754

Not budget for

Land Commission Vetting of public Land Deeds

Processing of Tribal certificate

Total

52,500

500,000

552,000

Not budget for

Liberia Extractive Industries Transparency (LEITI)

Produce regular LEITI report of high quality

Develop and implement a communication strategy

365,050

197,000

Not budget for

Total 562,000

Sector Total 13,205,813

Security and the Rule of Law

The Security and the Rule of Law sector of the national budget is made up of 9 entities and the Judiciary Branch of government. The total of 72,900,291USD is allotted by government to this sector while 3,982,000USD is committed by donor. Both government and donor budget support is 76,882,291USD. Donor funding committed to the sector will go to the Judicial Branch which is 1,430,000USD and 2,552,000USD to the Ministry of Justice respectively.

The Public Sector Investment Plan requires government to provide funding and implement 13 projects for 2013-2014 fiscal year at the cost of 13,205,813USD under the Security and Rule of Law sector. There is No budgetary allocation for any of the PSIP project in the Security and the Rule of Law sector in the draft budget despite the presence of the projects in the draft budget. According to the PSIP under this sector Government should construct 2 fire stations in ELWA and Brewerville respectively, rehabilitate 30 fire Hydrants by providing funding in the 2013-2014 budgets.

Table 4.

Security and the Rule of Law Project Project Cost USD FY 2013-2014Law Reform Commission Pocketing part or cumulative

supplements in existing law book in the case of amendment collection and compilation of prior and present legislation for indexing

376,000 Not budget for

Judicial Construction and furnishing of Judicial Institute

Expansion, pavement, furnishing of Judicial complex

Total

700,000

440,000

1,140,000

Not budget for

Ministry of Justice Improve and increase the preparedness of the LNP by

2,8000,000 Not budget for

increasing the supplies of Lethal and Non-lethal weapons

Reintegration of Minor offenders (particularly on corruption, sexual and gender based violence and junvenile )

Monitor and the repatriation of Immigrants

Prison construction in Voinjama and Cheesemanburg ,Deplopment of Border partrol

Construction of 2 fire stations at ELWA and Brewerville, rehabilitate 30 fire hydrants around Monrovia,train 100, Fire men

Total

2,811,000

657,000

500,000

500,000

6,7768,000

Ministry of National Defense Better welfare for AFL Soldiers

Establish, strengthening of the Legal Jurisprudence train legal petitioners to carryout the assigned cases both Civil an d UCMJ relating to AFL

Total

2,860,000

350,000

3,210,000

Not budget for

Human rights Commission Increase the capacity of the Human Rights Commission for full operation

Total

975,000

975,000

Not budget for

Sector Total 13,205,813Health

The Health sector is allotted 60,760,090USD by government while Donor community has committed 64,818,386USD. The government and donor support for health account for the total of 125,578,476USD for 2013-2914 in the draft budget. Donor support to the budget is targeted at the Ministry of health only.

There are 9 projects in this sector in the PSIP that required funding by the national budget. The PSIP requires funding for infrastructure projects, such as construction of Medical Training Institute and retain health workers, Expand support to county decentralized health and social welfare services, Infrastructure development (rehabilitation of Catharine Mills Hospital, memorial Hospital, CT scan Building, TNIMA dormitory) acquisition of State of the Art Medical equipment, drugs, supplies and consumables, Provide free primary health care in Bong County and central Liberia and to support an integrated referral system especially for maternal and new born emergencies Medicines and health products registration; drugs and patients safety monitoring est. there is no funding for these sector PSIP projects as well.

See Table 5

Health PSIP Project Amount USD FY 2013-2014Ministry of Health Completion of ongoing

infrastructure projects

Support for deconcentration/decentralization and pretension package

Establish Post Graduate Medical training Institute and retain health workers

Expand support to county decentralized health and social welfare services

Total

2,000,000

300,000

9,500,000

27,825,000

39,625,000

Not budget for

JFK HospitalInfrastructure development (rehabilitation of Catharine Mills Hospital, : memorial Hospital, CT scan Building, TNIMA dormitory)

Acquisition of State of the Art Medical equipment, drugs, supplies and consumables

Total

3,100,000

2,175,000

5,275,000

Not budget for

Phebe Hospital Provide free primary health care in Bong County and central Liberia and to support an integrated system referral system especially

516,800 Not budget for

for maternal and new born emergencies

Total 516,800LMHPA Qualitative and quantitative

analysis of medicines and health products; construction of head office and Lab Building

Medicines and health products registration; drugs and patients safety monitoring and communication and staff management

Total

200,000

310,350

510,350

Not budget for

National Aids CommissionRenovation and furnish of commission offices

Total

33,000

33,000

Not budget for

Sector Total 39,625,000

Social Development Services

Allotment in the draft budget from the government end for the Social Development Services is 11,500,058USD and donor support is 52,277,058USD. The total cost for this component in the draft budget is 63,777,085USD. Donor support to the budget will go to the Liberia Refugees, Repatriation and Rehabilitation Commission, Ministry of Gender and Development, National Commission on Disability, Ministry of Youth and Sports and Liberia Agency for Community Development.

The budget according to the Public Sector Investment Plan should fund the total of 8 projects for 2013-2014 fiscal year at the cost of 46,005,150USD, these projects should l be implemented by the Ministry of Youth and Sport, Ministry of Gender& Development, LRRRC and National Veterans Bureau include; Construction of mini sport stadium in River Gee, Bomi and Grand Kru, Fencing of SKD sports complex, support to under privileged and vulnerable young girls, Repatriate and integration of more than 17,000 Liberian returnees ,Reintegrate Liberian returnees through the acquisition of land (145 acres) for agriculture activities, legal services for returnees and refugees and to Provide skill training in agriculture, engineering and Medical for veterans. The Government of Liberia failed to budget for any of these projects mentioned for fiscal year 2013- 2014 in the draft budget.

See Table 6

Social Development Services PSIP Project AmountUSD FY 2013-2014Ministry of Youth and Sport Construction of mini sport stadium

in River Gee

Construction of mini sport stadium in Bomi county

Fencing of SKD sports complex

Construction of mini sport stadium in Grand Kru

Total

250,000

250,000

190,000

250,000

940,000

Not budget for

Ministry of Gender& Development

Support to under privileged and vulnerable young girls

Total

1,570,000

1,570,000

Not budget for

LRRRC Repatriate and integrates more than 17,000 Liberian returnees

Reintegrate Liberian returnees through the acquisition of land (145 acres) for agriculture activities and self –construction

Legal services for returnees and refugees

Total

10,000

1142,067

40,000

192,067

Not budget for

National Veterans Provide skill training in agriculture, engineering and Medical for veterans

Total

292,000

292,000

Not budget for

Sector Total 46,005,150

Education Education is allotted 79,514,226USD by government while Donor account for 61,570,679USD budget support for 2013-2014. Government and Donor account for the total of 141,084,905USD for education in the draft budget. Donor support to the budget will go towards the Ministry of Education and University of Liberia.

The total of 13 projects is outlined in the Public Sector Investment Plan that the education sector should implement in fiscal year 2013/14. PSIP projects identified for implementation by government doing 2013-2014 fiscal year include; Monitoring and evaluation of regional/county activities , Develop “B” certificate program, improve retention completion rates of females at secondary schools level (through cooperative partnership), revitalize French education in Liberia, Extra- Curricular academic enrichment activities ( Music, education, sports, and social/culture clubs etc.), Construct and furnish early Childhood Education Center and, Construct and furnish early Childhood Education Center and train staff, Textbook Provision nationwide, Revitalization of six existing learning resource Centers to accommodate the curriculum Centers, Renovation, expansion and construction of secondary schools, Strengthen existing TVET installation , Guidance and counseling program, Center of Excellence for Educational Accreditation, certification and licensing, “C" certificate in-Service training Program in 15 counties, Refurbishing of the academic building Fendell campus, Faculty development, David A. Straz Seinje Technical and vocational College, Renovate all MCSS schools and computers system, Remove 32 tangible structures- dorms and staff quarters, Establish accreditation unit and develop accreditation mechanism for higher education institutions, Recruit faculty, staff and administration; and provide educational services, Furnishing and equipping the WEAC regional office in Tubmanburg ,and Develop national trade training standards/curriculum at the basic level in 18 trades for the Liberian vocational training system. No fund was allotted to any of these projects in the draft budget.

Table 7

Education PSIP Project AmountUSD FY 2013-2014Ministry of Education

Monitoring and evaluation of regional/county activities

Develop “B” certificate program

Improve retenson completion rates of females at secondary schools level ( through cooperative partnership)

1,642,470

208,60

545,950

Not budget for

Revitalize French education in Liberia

Extra- Curricular academic enrichment activities ( Music, education, sports, and social/culture clubs etc.)

Construct and furnish early Childhood Education Center and train staff

Textbook Provision nationwide

Revitalization of six existing learning resource Centers to accommodate the curriculum Centers

Renovation, expansion and construction of secondary schools

Strengthen existing TVET installation

Guidance and counseling program

Center of Excellence for Educational Accreditation, certification and licensing

“C" certificate in-Service training Program in 15 counties

Total

30,000

951,500

389,385

1,150,050

150,000

6,000,000

111,400

670,400

250,000

192,000

12,291,763

University of Liberia Refurbishing of the academic building on Fendell campus

Faculty development

David A. Straz Seinje Technical and vocational College

Total

800,000

4,000,000

2,000,000

6,800,000

Not budget for

Monrovia Consolidated Schools System

Renovate all MCSS schools and computers system from 12-2015

Total

1,000,000

1,000,000

Not budget for

Booker Washington Institute Remove 32 tangible structures- dorms and staff quarters

Total

220,000

220,000

Not budget for

National Commission on Higher Education

Establish accreditation unit and develop accreditation mechanism for higher education institutions

Total

48,666

48,666

Not budget for

William V.S. Tubman University

Recruit faculty, staff and administration; and

2,145,000 Not budget for

provide educational services

Total 2,145,000West African Examination Council Total

400,000

400,000

Not budget for

Agriculture And Industrial Training Bureau Develop national trade

training standards/curriculum at the basic level in18 trades for the Liberian vocational training systemTotal

28,322

28,322

Not budget for

Sector Total 22,585,685

Agriculture PSIP Project Amount USD GovernmentAgriculture Ministry CARI Institution

strengthening, research enhancement

Rebuild the National Agricultural Advisory Service delivery to farmers

Muturu breeding and development

Integrated control of Schistosomiasis and intestinal Helminths (ICOSA)

Training in Agriculture statistics to provide evidence based data for policy and planning

Inland Fishery Development

promote the food crops

7,202,830

6,758,200

2,800,000

3,385,000

2,181,213

10,378,800

1,589,000

Not budget for

value chain

provide training on crop and livestock value chain and mechanization for farmers in Liberia

Total 37,767,590

Cooperative Development Agency

provide employment, training and capacity building for registered women and youth cooperatives to carry out income generating activities based on the interest of members

Total

736,575

736,575

Not budget for

Liberia Marketing Corporation capacity building for tree crop farmers

Total

127,770

127,770

Not budget for

Liberia Rubber Development Authority

Rubber nursery development

Total

109,828

109,828

Not budget for

Sector Total 10,918,155 Infrastructure and Basic ServicesThere are seven government apparatus making up the Infrastructure and Basic Service sector, the Government for 2013-2014 fiscal year budgeted 8,457,717USD and donor support is 101,524,231USD to this sector. Donor budget commitment will go to the Ministry of Public Works. The total budget for Ministry of Public Works from government and donor support is 134,991,035USD.

The PSIP requires for this year fiscal funding for the rehabilitation of E J Roye building and Installation of new traffic lights in Monrovia at the cost 532,000USD and 150,000USD respectively, but no funding is available in the draft budget to finance these 2 projects.

See table 7

Entity PSIP Project Amount USD FY 2013-2`014Liberia Broadcasting System Reactivation of TV

service & content improvement Development

Defining Rural Broadcasting television Broadcasting

532,000

150,000

Not budget for

Ministry of Post and Telecommunications

Chief information Technology Officer (CTO) and capacity building

National Postal address system

Expand and improve quality of mail services by the delivery construction of 9 post offices and (3 regional post offices and 6 county post )offices and staff

Total

61,366

989,333

299,500

1,350,199

Not budget for

Ministry of Transport To purchase computers and servers tp automate the Motor Vehicle and drivers License sections

Purchase and installation of 7 Weigh Bridges

Equipment for testing vehicle road worthiness and equipment for eye testing of applicant drivers available and

5,000

593,500

16,000

Not budget for

Commerce and IndustryThe Industry and Commerce sector of the budget has 12 state institutions, Government of Liberia has allotted 32,222,538USD and Donor budget support is 15,876,500USD for 2013-2014. Donor support in this sector is given to Ministry of Commerce and Industrial. Total amount for this component coming from government and donor perspective is 48,099,038USD. Government did not allot any fund for project in the PSIP for 13-2014 fiscal year for this sector.

The projects under the PSIP that require funding through the national budget include; Grant Marching Schemes, Business linkages, NIC Investment House, Special economic Zone (SEZ), Intellectual Property System (IPS) reform Agenda, Construct Strip Mail and Construction warehouse. No money is provided in the budget for these PSIP projects.Table 8

Industry and Commerce PSIP Project Amount USD FY 2013-2014National Investment Commission

Grant Marching Schemes

Business linkages

NIC Investment House

Special economic Zone (SEZ)

Total

847,000

185,660

1,300,00

3,608,900

5,242,603

Not budget for

Ministry of CommerceIntellectual property system (IPS) reform Agenda

Construct Strip Mail

Construct warehouses

Total

500,000

4,000,000

1,108,400

5,608,400

Not budget for

Ministry of Labor Conduct meeting with employees

273,000 Not budgeted for

and employers of private entities to enhance peace and harmony

Collect short term employment data; decentralize employment services in the counties

Regulate labor standards through work place inspections, mediate and arbitrate labor cases

Total

63,000

618,000

954,600

National Bureau of Concessions

Human capacity Development

Support to Bid preparation and evaluation

Monitoring and Evaluation

Total

105,600

105,600

666,716

877,916

Not budget for

PSIP Project Grand total 194,451,479

Donor support to National BudgetDonor support to the national budget will be in the form of grant and loan, 648,766,568USD which constitute 91% of donor revenue projection will be given as grant for project aid doing the 2013-2014 fiscal years, the projects are spread among 8 sectors of the draft budget. Donor community will contribute 61,000,000USD as direct budget support; this amount constitutes 9% of donor support to the budget. The total donor support to the budget is 709,926,448USD for fiscal year 2013/14. 576,632,994USD of the total Donor support of 709,926,448USD will come as grant which is 81% while 133,293,454USD will be given by donor as loan, this amount constitute 19% of total donor support to the budget. 26 entities of government will be the beneficiaries of donor project aid support.

Table 9 Donor Project Aid Support to the National Budget Per Institution Allocation

Institution Amount USDMinistry Finance 97,302,782Ministry of Planning 4,174,043Civil Service Agency 2,500,000Ministry of Internal Affairs 7,108,225Monrovia City Corporation 2,000,000General Auditing Commission 2,078,707National Elections Commission 4,904,654Land Commission 897,220Judicial 1,430,000Ministry of Justice 2,552,000Ministry of Health and social Welfare 64,818,386Ministry of Youth and Sport 11,704,000Ministry of Gender& Development 8,882,316LRRRC 24,438,472National Commission on Disabilities 81,909Liberia Agency for Community Development 7,170,361Ministry of Education 59,285,376University of Liberia 2,485,333Ministry of Lands Mines and Energy 32,860,844Forestry Development Authority 9,183,393Liberia Water and Sewer Corporation 2,000,000Liberia Electricity Corporation 129,481,138Ministry of Agriculture 88,752,612

Liberia Produce Marketing Corporation 1,000,000Ministry of Public Works 100,524,231Ministry of Commerce 15,876,500Grand Total 648,766,568

Expenditure and Budget allocation by Economic ClassificationThe Government of Liberia allotted two 222,598,477 USD as compensation for GOL employees, 121,343,282 for goods and services, 93,588,345USD for grants, 4,119,132USD for grants 111,113,176USD for GOL projects, 500,000 for Social Benefit and 648,766,568 for Donor projects 2013-2014 fiscal years. Expenditure and Budget allocation by Economic Classification Table 10 Economic Classification Amount USDCompensation of Employees 222,598,477 Goods and Services 121,343,282Grants 93,588,345consumption Fixed 4,119,132

Social Benefit 500,000

GOL project 111,113,176Donor project 648,766,568 Grand Total 1,202,028,980

Public InvestmentThe government has allotted 15,325,000USD for Public Investment (projects) in the draft budget, while the Public Investment Plan projects are not budget for.

Table 11 Public Investment Allocations Per Enity in Draft Budget

Institution Amount USDMinistry of State for Presidential Affairs 225,000Ministry of Finance 1,800,000Ministry of 250,000Liberia Anti Corruption Commission 150,000 Ministry of Health 11,000,000Ministry of Gender and Development 250,000Ministry of Agriculture 500,000William V.S. Tubman University 250,000University of Liberia 100,000Liberia Boardcasting System 150,000 National Investment Commission 200,000Ministry of Commerce and Industry 250,000

National Bureau of Concession 200,000Grand Total 15,325,000

General and NationalThe draft budget has the total of 87,012,573USD as General and National Claim. The Ministry of Finance has 45,116,141USD, Ministry of Planning 52,000USD, Civil Service Agency seven 7,475,000USD, General Services Agency 350,000USD, LISGIS 1,000,000USD, National Claim 17, 205,00USD, Ministry of Health 1,613,397USD, University of Liberia 100,000USD, Ministry of Public Works 94,771USD.The total of 87,012,573USD for General Claim in the draft budget. What is not known is what constitutes General and National claims that are costing the Government of Liberia this huge sum.

There is a need to clearly state what are the General claim and national Claim line by line per budget item in the draft budget so that the Government spending in no way under mines development, there is a need to ensure the amount place in the draft budget for General and national claims are surely accounted for line by line justifiably other than that the money should be re allocated to fund Public Sector Investment Plan projects.

Table General and National Claim Allocation Per Enity in Draft Budget

Institution Amount USDMinistry of Finance 45,116,141Ministry of Planning 52,000Civil Service Agency 7,475,000LISGIS 1,000,000Internal Affairs 14,719,661Public Works 94,771National Claim 17, 205,00Ministry of Health 1,613,397University of Liberia 100,000General Services Agency 350,000 Ministry of Foreign Affairs 900,000 Grand Total 87,012,573

Fund There are four types of Funds in the draft budget; namely Youth, Reconciliation, Education, UNMIL drawdown, WASH, Health, Capacity, Agriculture, infrastructure and Economic Growth Enhancement. Youth Fund is 4,000,000USD, Capacity Fund 3,000,000USD, Reconciliation fund 2,000,000USD, Education Fund 11,666,562USD, UNMIL Drawdown 10,000,000USD,WASH Fund 2,000,000USD , Economic Growth enhancement Fund 12,000,000USD, Agriculture Fund

1,683,688USD and Infrastructure Fund 28,044,826USD. The total of 75,099,076USD is allotted for the 10 Funds in the draft budget.

The various Funds should clearly be define what their for, only 3 of the 10 Funds in the draft budget are defined as regards what the Fund are about and what the funds are intended for. The rest of the Funds are not define and it is not stated what the Funds will be use for.

Table 12 Funds

Name of Fund Amount USDYouth 4,000,000Capacity 3,000,000Reconciliation 2,000,000Education 11,666,562UNMIL Drawdown 12,000,000WASH Fund 2,000,000Economic Growth enhancement 12,000,000Agriculture 1,683,688 Infrastructure 28,044,826Liberia Innovative fund 500,000National Citizenship Education Curriculum 305,000 Grand Total 75,904,076

Executive Mansion The Executive Mansion is once more in the budget for renovation, this time the total of nine million USD is allotted for renovation. The amount in the draft budget for the renovation of the executive Mansion should be transfer to fund PSIP projects, because the renovation of the Executive Mansion is over due and lot of funds have been spend already for the renovation of the Mansion therefore it is unrealistic for nine million to be allotted for renovation at this time.

AllowanceThere are two types of allowances of government, General allowance and Special allowance. General Allowance for 2013-2014 is 50,000,000USD while Special allowance amount to 26,000,000USD. General allowance and Special allowances in the draft budget total 76,000,000USD. Findings

1.The draft national budget is not program driven in that the Public Sector Investment Plan (PSIP) which is the Government of Liberia program plan for the Middle Term budget period was not follow doing the preparation of the draft national budget thereby not budgeting for 134 projects for 2013-2014 fiscal year as require.

2. Allotment for Municipal component of the budget is for only the Cities Government of Monrovia and Paynesville, leaving the rest of other cities Governments without funding.

3. The Ministry of Finance failed to implement the PSIP in the preparation of the draft budget by not ensuring that projects of line entities of government in the PSIP form part of their respective budgets

4. The PSIP will not be achieved as long as there is no budgetary support.

5. The Ministry of Finance has failed it statutory responsibilities as custodian of the PSIP and the budget preparatory entity that approves ministries and agencies budgets by not implementing the PSIP.

6.Most government institution for the 2013-2014 fiscal period will not be able to do any tangible work because nearly their entire budget is just on salary and goods and service which means their will be extremely low out put by these institution since their will have no project to implement as directed b y the PSIP

7. The national budget is not 545, 000,000 as the government announced, instill the Grand total of the budget for 2013-2014 is 1,202,028,984USD. Donor support account for 648,766,568USD projects aid support, 61,000,000USD direct budget and 545,000,00USD government support to the budget.

8. Donor contribution to the budget through both direct budget support and projects aid support is 709,926,448USD for 2013-2014 fiscal year.

9. The Open Budget Initiative is misleading and the budget is not open as government is saying, the Ministry of Finance give misleading information to the public and the world by not announcing the actual cost of the draft budget as it is printed and submitted to the Legislature which is 1,202,028,984USD for 2013-2014 fiscal year and not 545,000,00USD as was announced.,

10. The Municipal sector, Monrovia City Corporation and Paynesville City are the governments budgeted for, the rest of the Municipal Governments in the country were not budgeted.

11. The Government of Liberia in the draft budget allotted only seventeen thousand twenty five thousand three hundred and seventy five USD to project in the entire budget out of the five hundred and forty one million that has been projected for fiscal year to come.

12. The Government of Liberia will get a borrow 133,000,000USD for fiscal year 2013-2014.

14. Youth Fund has no project to indicate what the budgeted money will be use for and no specific line Ministry is responsible to administer the fund. The Public Sector Investment Plan

required the Youth and Sport Ministry to construction three mini stadiums in Grand Kru, River and Bomi counties.

15. The Ministry of Finance made false and misleading pronouncement by stating that the sum of the draft budget is 541,058,413USD when the draft budget grand total is 1,202,028,980USD. 15. The 12,000,000USD allotted in the draft budget called indirect Concession Framework is not justifiable in the mist of high competing priorities such as the rehabilitation of Catharine Rehabilitation Center which the government has decided to rehabilitate under the PSIP but has failed to budget for its rehabilitation.

16. The 4,500,000USD put aside for the 134 projects under PSIP should be reallocated along with 93,000,000USD million unspecified spending allotments in the budget, 70,000,000 million USD unjustifiable general and national claims to fund the 134 projects of PSIP.

17. The authorities of the Ministry of Finance including the Minster lack the authority to submit the budget to Legislature according to the Public Financial Management Act of 2009.

18. More than ninety five percent of government projects in the draft budget are donor supported projects, the budget is not projects as per government pronouncement instead the budget is donor driven per projects.

19. The General Auditing Commission will not conduct audit this budget year because the 5,035,000 allotted to GAC is budgeted for salaries and goods and services.

20. The commitment of government to implement the PSIP can not be realize in the absent of budgetary support.

21. The total cost for the PSIP implementation 194,000,000USD but only 4,500,000USD.Is placed in the draft budget for all PSIP projects 2013-2014

Recommendation 1. The National Legislature must ensure that lines Ministries and agencies budget aligned with the Public Sector Investment Plan for 2013-2014.

2. The Minister of Finance should be invited to the Legislature to show cause why he did not allot money to the PSIP Projects.

3. Straight orders should be given to public institutions that as of this budget period all line ministries and agencies must follow the PSIP project document in the preparation of their respective budgets.

4. Government should announce and inform the Liberia people that the actual Grand total of the draft budget to the public as it is written as 1,202,028,980USD and not 541,058,413USD was previously announced.

5. The Minister of Finance should not submit the draft national budget to the Legislature again or any of his deputy, because submission of the budget to Legislature by officials of the Ministry of Finance is a violation of sections Of the Public Financial Management Act of 2009, this exclusively mandates the president to do.

Conclusion The national draft budget should be seem this time as a complete program driven not by words but by deeds if Liberia is to achieve the dream of becoming a middle income country by 2030 which is the fulcrum of the Agenda for Transformation (AfT), this policy document should not be like numerous policy that we as a nation and people are noted to prepared but lack the willingness to implement. The Aft and the PSIP are good policy documents that intend to improve the equality of life of Liberians by saving and spending, removing one-off payments from operational budget in order to finance PSIP projects.