HOUSES PASSES 2011/2012 NATIONAL BUDGET AS SENATE CONCURS

The Legislature salary Increment For Civil Servants, Healthcare Sector Gets 30%

The House of Representatives on Thursday passed the 2011/2012 with a a minimum US$ 100 salary for civil servants, thus reflecting an enormous increment in salaries for citizens whose services it described as critical to recovery, development and sustenance of peace.

The US$ 495,909.000 projection from the president was stepped up with additional US$ 54,524.000 which is over $ 33 billion Liberian Dollars for fiscal year 2011/2012.

Legislature, in passing the budget noted that Liberian civil servants were the most poorly compensated in the West African sub region with US$ 15 being the official take home salary, inclusive of taxes, but now “Liberian civil servants are further ahead of their peers in other parts of the region, including countries with larger and more dynamic economies.”

The budget is the final in this term of Legislation of the 52nd Legislature. The passage is in compliance with Article 34 (d) of the Liberia Constitution, and Section 11.1 of the 2009 Public Financial Management Law.

The budget constitutes some US$ 276,159,000 from tax revenues, US$ 49,506.000 (including grant of 39,070,000) from non-tax revenues, and US$87,635,000 (with borrowing of US$ 5m from IDA credits) as cogent revenue plus an estimated bank balance of US$ 2,539,000.
President Sirleaf in her draft national budget said it was ‘designed to help us achieve our PRS policy targets,’ with the health sector accruing 30% from US$ 27.9 million to US$ 31.8 million while education grows by 16.5% from earlier position of US$ 47.5 million to US$ 51.2 million.
Security and Rule of Law sector receives US$ 56,941,128, a total of 12.3% of the budget. This sector, according to the Legislative Press Bureau, includes the Judiciary, the Armed Forces of Liberia, the Liberia National Police and the Bureau of Immigration and Naturalization.
Other sectors that enjoyed increment in the budgetary appropriation are Social Development Fund, with concession payments to County Development Fund, of which an initial estimate shows an increment from US$ 7.6 million to US$ 17.4. President Sirleaf said additional resources would be allocated once the sources of funds would have been confirmed.
In the budget, allocation to affect the enhancement and Transparency and Accountability grew by 35.4% from US$ 20.3m to US$ 27.5m while Public Administration reached out to 11.9% from US$ 67.7m to US$ 75.8.
These allocations were the mostly realistic estimates, as care was given to sustaining “the level of spending in the event of unanticipated revenue shocks.” some of the issues considered were the absorptive capacities of the different sectors in previous fiscal periods, expectations and assumptions for key sources of revenue earmarked for specific sectors.
The total debt service appropriation under the budget is placed at US$ 12m even though the actual requirement for the FY 2011/2012 under the debt resolution strategy is put at US$ 25m.