MONROVIA – Feb. 5, 2025: The Liberian government has rolled out stringent fiscal reforms, resulting in a substantial decrease in benefits for officials across all State-Owned Enterprises (SOEs) and government entities. This decision comes in response to public outcry regarding inflated allowances, particularly for fuel and scratch cards, which were carried over from the previous Coalition for Democratic Change (CDC) administration.

Addressing Inherited Excesses and the Need for Change

During the CDC administration, a “harmonization” process was initiated to manage salaries. However, rather than genuinely reducing expenses, many SOEs diverted parts of officials’ salaries into operational perks such as fuel, scratch cards, and vehicle upkeep. This allowed government leaders to retain high compensation levels while salaries appeared lower.

Recently, concerns over excessive allowances resurfaced, revealing that the current administration had inherited an unregulated system. Officials from various ministries, agencies, and SOEs were enjoying considerable benefits, with some heads of entities receiving as much as 800 gallons of fuel monthly.

In response to these public concerns, the Unity Party-led administration under President Joseph Boakai has implemented significant fiscal reforms aimed at reducing expenditures. Effective in the 2025 budget, the new policy will drastically cut benefits for all government officials, including ministers, agency heads, and SOE executives:

★ Fuel allowances: Heads of entities will now be limited to 150 gallons per month, down from the previous 800 gallons.

★ Scratch card allowances: Restricted to $200 per month for heads of entities.

★ Deputy heads of entities: Fuel allowances reduced to 125 gallons, with scratch cards capped at $175 per month.

★ Principal assistants: Fuel allowances set at 100 gallons, with scratch cards limited to $150 per month.

Furthermore, no head of an entity will receive a gross salary exceeding $7,000, aligning public sector pay with the country’s economic conditions.

These new fiscal measures create a clear distinction between past practices and present policies. The backlash regarding excessive allowances initially placed undue focus on current officials, neglecting the fact that they were operating under long-standing policies from the previous administration.

With these reforms, the government not only responds to public outcry but also reaffirms its dedication to responsible financial management. The revised policy aims to ensure more effective use of resources and halt the longstanding trend of unchecked benefits that have drained public finances.

Looking ahead, the expectation is that all government institutions and SOEs will comply with these new fiscal regulations, marking the end of excessive allowances and establishing a standard for accountability in public spending.