By Sulaiman Jalloh

Sierra Leone’s Minister of Finance Sheku Ahmed Fantamadi Bangura, has on Friday, November 15, 2024 presented the budget for the Fiscal Year 2025 with the theme: Improving the well-being and the quality of life of Sierra Leoneans with a  NLe 18.9billion projection as domestic revenue generation.

The Minister reminded  MPs that the “repeated external shocks and global economic uncertainty in recent years adversely affected domestic economic performance and eroded the living standards of our people”.  He added that government rightly responded by formulating and implementing  prudent macroeconomic policies in 2023 and 2024 to mitigate the impact of the shocks and correct policy slippages. “ The fiscal consolidation stance combined with proactive monetary policy has begun to bear fruits—economic recovery remained resilient, the fiscal and trade deficits are narrowing, inflation is decelerating, and the Leone has been relatively stable with positive implications for improved living conditions”, the Minister said, beaming with confidence.

Minister Fantamadi Bangura explained that “the 2025 budget will seek to consolidate these gains and prioritise programmes and policies that will foster inclusion and economic resilience, as well as improve the quality of life of the people of Sierra Leone; hence the theme of the Budget: Improving the Well-being and Quality of Life of Sierra Leoneans.” The Minister however warned that this would require the continued implementation of prudent fiscal and monetary policies to safeguard macroeconomic stability.  He added that “it is also imperative to undertake sectoral and structural reforms to promote sustainable and inclusive growth and enhance the living standards of Sierra Leoneans.”

According to Minister Bangura, the NLe 18.9 billion domestic revenue projection  will contribute 9.8 percent into the country’s Gross Domestic Product (GDP) and that it will also improve income tax generation to about NLe6.7 billion. For goods and services tax (GST), he said it is estimated to raise about NLe4.3 billion, exercise duties will be around NLe4.1billion and NLe1.1 billion for royalties and licences.  He added that with the FY2025 budget, parastatal dividends will be NLe171.7 million, noting revenue from other Governmental departments including treasury single account (TSA) agencies and royalty ok timber exports will amount to NLe1.8 billion.

“Total expenditure and net lending for the 2025 fiscal year is projected at NLe35.3 billion (18.3 percent of GDP)” he pointed out, adding of the total expenditure, recurrent expenditures are projected at NLe22.1 billion (11.4 percent of GDP) and capital expenditures and net lending are projected at NLe13.0 billion (6.7 percent of GDP), of which, according to him the capital expenditure would be around  NLe11.7 billion and capital transfers for the recapitalisation of the Bank of Sierra Leone is NLe1.3 billion.

On Debt Service Payments, Sheku Ahmed Fantamadi Bangura noted that the total interest payments are projected at NLe7.4 billion in 2025 (3.8 percent of GDP). Of this, he said interest payments on domestic debt will amount to NLe7.1 billion, and on external debt, NLe319.0 million. “The principal repayments on external debts (amortisation) will amount to NLe1.9 billion,” he added. He emphasized that road user charges and vehicle licences will contribute NLe249.1 million to domestic revenue in 2025.

Speaking about Feed Salone Programme, the minister noted there has been reduction of importation of basic food items, including a 16 percent reduction in rice imports, 34 percent decrease in onion imports, 13percent reduction in chicken imports, and 25 percent decrease in egg imports.

On machinery, he stated that the government has distributed 200 rice mills, 142 rice threshers, 144 combine harvesters and 3 landing crafts to farmers across the country.

Debt Service Payments

Total interest payments are projected at NLe7.4 billion in 2025 (3.8 percent of GDP). Of this, interest payments on domestic debt will amount to NLe7.1 billion, and on external debt, NLe319.0 million.
The principal repayments on external debts (amortisation) will amount to NLe1.9 billion.

Domestic revenue for FY2025 is projected at NLe18.9 billion (9.8 percent of GDP). Income taxes will contribute NLe6.7 billion; goods and services tax (GST), NLe4.3 billion; customs and excise duties, NLe4.1 billion; mining royalties and licences, NLe1.1 billion; fisheries royalties and licences, NLe171.7 million; parastatal dividends, NLe396.0 million; revenues from other Government departments, including Treasury Single Account (TSA) Agencies and royalty on timber exports will amount to NLe1.8 billion.
Road user charges and vehicle licences will contribute NLe249.1 million to domestic revenue in 2025.

Total expenditure and net lending for the 2025 fiscal year is projected at NLe35.3 billion (18.3 percent of GDP).

Of the total expenditure, recurrent expenditures are projected at NLe22.1 billion (11.4 percent of GDP) and capital expenditures and net lending are projected at NLe13.0 billion (6.7 percent of GDP), of which, capital expenditure is NLe11.7 billion and capital transfers for the recapitalisation of the Bank of Sierra Leone is NLe1.3 billion.