By zainab.joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – Government has disbursed over $40 million in energy subsidies to Independent Power Producers (IPPs) since last year, according to Financial Secretary Matthew Dingie. This significant expenditure highlights the government’s ongoing challenges in mobilizing resources amidst financial constraints.
Despite these difficulties, the government has successfully allocated 40% to 50% of budgeted resources to various ministries this year, underscoring their commitment to budget execution. Dingie praised the National Revenue Authority (NRA) for its achievements, noting that the NRA has managed to implement several programs without accruing arrears, despite the absence of budget support disbursements from January through August.
In the first half of the year, the NRA surpassed revenue targets by SLE 380 billion Leones, thanks to enacted policies, measures, and reforms, including the automation of tax processes. Nevertheless, Dingie recognized the need to address ongoing revenue leakages, suggesting that effectively tackling these issues could potentially double revenue targets.
The ministry has made strides in engaging with international partners, including a notable engagement with the International Monetary Fund (IMF). Preparations are underway for official negotiations in September concerning a successor economic extended credit facility program, which the government hopes will be approved by the IMF board in October or November. This approval would also make Sierra Leone eligible for the Resilience and Sustainability Trust Facility program, potentially securing $80 million in disbursements over the next three years.
Discussions with the World Bank are also in progress to secure budget support for the current year. The government urges ministries and departments to meet development policy action triggers within the next two months to gain the World Bank’s approval. Additionally, the government anticipates receiving approximately 12 million Euros in budget support from the European Union by year-end.
Amidst these efforts, the government has consistently paid public sector wages on time, including those of teachers, health sector workers, civil servants, and political appointees. Capital projects in roads, energy, and water supply have been advanced, with local councils receiving funding twice in the past eight months, reflecting the government’s commitment to infrastructure development.
Looking ahead, the government plans to align the 2025 budget with the National Development Plan’s objectives, particularly focusing on the “Feed Salone” initiative to enhance health services, education quality, and explore technological advancements for economic development. The ministry remains dedicated to responsible fiscal management and maintaining international credibility as it navigates current challenges and strives for a more prosperous future for Sierra Leone. ZIJ/19/8/2024
