Lack of Control in Government Spending Threatens Salone’s Economy
The World Bank Sierra Leone Economic Update 2025 reveals that the lack of Control in Government Spending Threatens Salone’s Economy.
The World Bank Sierra Leone Economic Update pointed out that fiscal performance remains a key vulnerability.
“Weak fiscal discipline, characterized by significant and recurrent budgetary overruns, threatens to jeopardize macroeconomic stability and sustainability,” the report stated.
The report furthered that the overall deficit widened to 5.1 percent of GDP in 2024, exceeding budget targets for the fourth consecutive year, driven by large capital expenditure overruns.
It maintained that domestic revenue improved by 1.8 percentage point of GDP—rising to 9.2 percent of GDP in 2024, supported by tax policy measures implemented through the 2023 and 2024 Finance Acts, expanding the coverage of tax audits, and tax education.
The report however disclosed that revenue remains constrained by pervasive tax exemptions, weak enforcement, administrative inefficiencies and a narrow tax base due to the high level of informality.
“Debt risks have heightened, with very high debt servicing burdens and refinancing costs, driven by short-term domestic borrowings at real interest rates of over 10 percent, threatening fiscal sustainability,” the report stated.
