Why do we have a Special Budget?
The Government of Liberia, through the Ministry of Finance and Development Planning, approved a 347.9 USD million Special Budget for the period of July 1 to December 31, 2021, to transition to a full calendar year as mandated by amendment and restatement of the Public Financial Management law Act of 2019, which requires a change in the fiscal calendar to be revised from July 31 to June 30 to January 1 to December 31.
The Special Budget 2021 contains the budget component, explaining how the Government will raise the money (revenue) and spend (expenditure) on public services, Government, and debt management. Despite the negative impact of the COVID-19 pandemic on Liberia’s economy, the Government projects a positive macroeconomic outlook for the industrial sector, with an increase in iron ore and rubber production in the first half of the year. The Government managed to implement a firm monetary policy that strengthened the Liberian dollar and subsequently decreased Inflation rates from over 20% in 2020 to 10% in March 2021. The Government also received international financial support from the International Monetary Fund (IFM) and other donor grants, which slightly strengthened the gross international reserves, net remittances and could boost the country’s Gross Domestic Products (GDP) at a projection of 3.6% in 2021.