OVERALL FISCAL DEFICIT WIDENED … Says Bank of Sierra Leone

The Monetary Policy Statement (MPS) of the central bank of Sierra Leone has revealed that the fiscal policy has widened.
“The overall fiscal deficit widened in quarter 1 of 2026 relative to the same period in 2025,” MPS stated.
That the increase was largely due to lower government revenue and a slight increase in government expenditure, noting that despite this development, the primary balance recorded a surplus, supported largely by ongoing efforts to rationalize discretionary spending.
The committee commended the government’s fiscal consolidation efforts but emphasized the need to further strengthen budgetary management to ensure long term fiscal sustainability while containing borrowing cost
That both Reserve Money and Broad Money expanded in Quarter 1 of 2026 relative to the same period in 2025.
“Despite this growth, the target on reserve money under the IMF Extended Credit Facility (ECF) programme was met, “ the statement said.
That the credit to the private sector by Commercial banks also expanded during the same period and was within the IMF ECF programme target.
The Committee said that it continues to stress the importance of an adequate flow of credit to the private sector and encouraged banks to implement prudent lending practices to support investment and overall economic activity.