By zainab.joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – The Ministry of Finance has issued the Budget Call Circular, revealing that Sierra Leone’s budget for the year 2024 is expected to surpass the allocation for 2023. The projected budget expenditure and net lending stand at NLe 23.8 billion, accounting for 24.5 per cent of GDP, a significant rise from the estimated NLe 18.8 billion allocated in 2023.
Contained within the projected Resource Envelope for the fiscal year 2024 are allocations of NLe 3.0 billion for Goods and Services and NLe 3.1 billion for Subsidies and Transfers.
This circular marks the commencement of the 2024 budget process, with ministries, departments, and agencies (MDAs) mandated to adhere to the outlined guidelines in formulating their budget estimates.
Matthew Dingie, the Financial Secretary who endorsed the document, envisions a total Revenue and Grants of NLe 21.0 billion (21.7 percent of GDP) for FY2024. Domestic Revenue is expected to contribute NLe 15.4 billion (15.9 percent of GDP), an increase from the estimated NLe 10.6 billion (14.1 percent of GDP) in 2023. Grants are projected to reach NLe 5.7 billion (5.8 per cent of GDP) for FY2024, up from an estimate of NLe 4.0 billion (5.4 per cent of GDP) in FY2023.
The Ministry elucidated that allocations for Goods and Services, Subsidies and Transfers, and Domestic Capital Expenditure are grounded in the projected resource envelope. This envelope encompasses domestic revenue, budget support grants, domestic borrowing, and Special Drawing Rights (SDR) resources.
Furthermore, the Domestic Capital budget is set at NLe 2.3 billion (2.3 per cent of GDP) for 2024, an increment from the estimated NLe 2.1 billion (2.8 per cent of GDP) in FY2023.
MDAs are enjoined to provide an all-encompassing list of existing and potential revenue streams. Additionally, they are required to furnish data on actual revenue collection from the past two years and outline medium-term revenue projections, encompassing deposits linked to the sale of contract bid documents.
The Financial Secretary has called upon MDAs to report all bank account balances alongside their revenue proposals. Moreover, they are tasked with submitting tax and non-tax proposals, including proposals for fee and license rate adjustments, for scrutiny during budget hearings.
In accordance with the Finance Act (2020), MDAs are directed to allocate budget provisions for the payment of taxes, duties, and fees. This encompasses their liability for taxes, fees, and import duties on their imports.
In tandem with reporting tax expenditure, MDAs are mandated to incorporate a comprehensive report on tax expenditure within their 2024 Budget proposal. This report should encompass duty waivers categorized by type, as well as corporate income tax exemptions granted to investment projects, including mining companies and manufacturing firms operating under their oversight. ZIJ/14/8/2023
