Liberia has started work on its 2027 national budget, with Finance Minister Augustine Kpehe Ngafuan warning ministries and agencies that they will have to make difficult choices as government balances growing demands with limited resources. The Ministry of Finance and Development Planning opened the 2027 Executive Budget Hearings on Thursday, October 1, beginning a process in which government institutions will account for their 2026 performance and outline their priorities for next year.
Ngafuan praised the Mines Ministry for exceeding its 2026 revenue target and recognized the contribution of the mining sector to government revenue. He cautioned that this year's performance cannot simply be repeated in 2027, citing a one-time revenue inflow of about US$200 million, which helped strengthen this year's collections but will not be available next year. This means government will have to find other ways to close the gap while ministries and agencies continue to push for funding for their programs.
The Finance Minister said not every budget request can be approved in full. If an institution asks for more money than government can provide, its leadership must decide which programs are most important and where spending can be reduced. Ngafuan urged institutional budget committees to play a stronger role in reviewing priorities and preparing realistic proposals before ministries appear before the national budget team.
The Ministry of Mines and Energy acknowledged the pressure on revenue-generating institutions. The Deputy Mines Minister for Operations said the ministry had "set the bar high" and understood the challenge of maintaining strong revenue performance in 2027. He said a Mining Revenue Task Force involving the Mines Ministry, MFDP, and the Liberia Revenue Authority is being organized to improve coordination and strengthen revenue collection.
The Central Bank of Liberia is also expected to participate in the Mining Revenue Task Force. The Deputy Minister said mining remains an important source of potential revenue, although increased production and investment do not always translate into immediate revenue gains. He acknowledged that the US$200 million one-off inflow would not return next year and emphasized the need to cover the gap.
The 2027 budget hearings will continue through October 9, with ministries and agencies expected to explain their 2026 performance and defend their priorities for the coming year. The process will help MFDP determine how limited public resources should be allocated before the budget is submitted to the Legislature. This process will test whether ministries can plan within realistic means.
The Liberian government is working to manage both sides of the equation — revenue and expenditure — and urging institutions to be realistic about what can be funded. Key to this process is ensuring that ministries prioritize their spending and make the most of the resources available to them.
Key points
- Liberia's 2027 budget faces a significant challenge due to the non-recurrence of a US$200 million one-time revenue inflow.
- Finance Minister Augustine Kpehe Ngafuan has urged ministries to prioritize their spending and make realistic budget requests.
- A new Mining Revenue Task Force has been established to improve coordination and strengthen revenue collection in the mining sector.
