Domestic Revenue Performance Remains Weak- Ministry of Finance

The Annual Economic Bulletin report by the Ministry of Finance, for the Financial Year 2024 revealed that domestic revenue performance remains weak.
“Rising debt stock and payments have increased liquidity risks as domestic revenue performance remains weak,” the Annual Economic Bulletin report stated.
The report furthered that notwithstanding the improved revenue performance in 2024, the ratio of debt service to revenues remains high and constitutes the greatest challenge to fiscal management.
The report maintained that debt service to domestic revenue increased to 52 percent in 2024 from 50 percent in 2023, noting that the country remains at high risk of debt distress, with sustainability dependent on strong fiscal adjustments and macroeconomic stability.
The report stated that total expenditure and net lending in 2024 amounted to NLe26.9 billion with an overrun of NLe542 million above the budgeted target.
“This overrun is primarily due to the overrun in the Goods and Services expenditure mainly from the higher than projected spending in the security sector for coordination and payments to security contractors for rice, vehicles, uniform and other equipment, payments of 2023 return vouchers being arrears for diet and condiments owed by the Sierra Leone Correctional Service,” the report emphasized.
The bulletin noted that domestic revenue mobilization in the medium-term will be anchored on the implementation of the Medium-Term Revenue Mobilization Strategy including improving tax policy and tax administration measures including tax compliance and strengthening auditing and data analytics.
“Deepening and strengthening public financial management reforms through strengthening budget planning and execution, developing a new wage bill strategy and strengthening commitment control to multi-year domestic capital budget to rein the accumulation of arrears, will remain the main anchor for containing expenditures in the medium-term,” the bulletin stated.