The U.S. Government has made a substantial contribution towards Liberia’s efforts to enhance its national budget, aiding the Liberia Revenue Authority (LRA) with modern technology equipment through a donation valued at US$100,000.
This donation, provided through USAID’s Local Empowerment for Accountability and Decentralization (LEAD) Activity, aims to strengthen tax administration in Liberia and align with LRA’s aspiration to raise the national budget to US$1 billion. The equipment includes laptops, security camera systems, and power supply units.
“Our shared goal is to see domestic revenue increase from US$700 million to US$1 billion by 2027,” U.S. Ambassador Mark Toner said during the official handover of the consignment at the LRA Headquarters in Paynesville on Thursday.
He emphasized the importance of enhancing tax collection systems to boost revenue for Liberia’s national development.
“A robust tax system is essential for any nation’s development,” Toner said. “By improving the LRA’s capacity to collect taxes more efficiently, we are not only boosting revenue, we are supporting improvements in Liberia’s public services-whether in healthcare, education or infrastructure.
“However, we need to ensure revenue transparency and accountability so that resources can be effectively utilized for the country’s development. It is crucial for citizens to see the tangible benefits of their taxes.”
He highlighted the donation’s role in improving operational efficiency and fostering public trust in the LRA, underscoring the significance of revenue management transparency and accountability.
The donation included 30 state-of-the-art laptops, 1 piece of 8 Channel Network Video Recorder for POE Security Camera System, 8 pieces of Dome Camera , 2 pieces of American Power Conversion Uninterrupted Power Supply, Environmental Monitoring System for Data Center, and Veeam Data Platform.
The donation comes at a time when Liberia is changing its tax regime, transitioning from the Goods and Services Tax (GST) to the Value Added Tax (VAT) system.
“This equipment will play a pivotal role in improving operational efficiency and accountability, while also fostering public trust in the LRA,” Ambassador Toner said. “The U.S. Government is proud to support Liberia in this important transition to VAT. Through the LEAD Activity, we will continue to work closely with LRA, particularly the Domestic Tax Department, to ensure the successful implementation of VAT,” he said. “This support will include training and capacity building for staff and field offices, helping to create a more efficient and transparent tax system.”
Liberia has been endeavoring to build its revenue streams and by doing so increase its national budget. But this has been difficult to achieve as the country has been reliant on external sources of revenue.
The first person who explored the idea of raising Liberia’s national budget to US$1 billion was the political leader of the Alternative National Congress, Alexander B. Cummings.
When Cummings said during the 2017 presidential elections that his team had the capacity to double the Liberian national budget from US$500 million to US$1 billion, many critics lambasted him, insinuating that he was being overly ambitious and that his prediction was not realistic.
But since then subsequent leaders of the Liberia Revenue Authority (LRA), including the current Commissioner General James Dorbor Jallah, have locked-in on that vision, setting the US$1 billion mark as an ambitious target.
“This is a national milestone we can achieve as a nation in a considerable short period of time,” Jallah said at an event a few months ago.
Enormous Progress in Revenue Collection
Jallah, acknowledged the substantial contribution of the US government to Liberia’s domestic revenue generation. He highlighted the significant progress made since the civil crisis when the national budget was a modest US$80 million, contrasting with the current budget nearing US$700 million.
Previously heavily reliant on external support, today only US$40 million of the budget comes from external sources, demonstrating Liberia’s advancements in revenue self-sufficiency.
“The support from the US government has, over the years, contributed excessively to our domestic revenue generation. Right after the Liberian civil crisis, the nation’s budget stood at a paltry US$80 million, but today, it is almost US$700 million,” Jallah narrated. “Back in the day, about 90 percent of the budget depended upon external support, but today, only US$40 million of the nearly US$700 million budget is sourced from outside.”
This tremendous improvement in revenue generation, he noted, speaks to the tremendous progress we have made as a country when it comes to domestic revenue generation.
“Most of our successes in this regard has been as a result of the enormous support we continue to receive from the US government and other partners,” he said.
The LRA boss expressed optimism about surpassing the one billion budget mark and emphasized the LRA’s ongoing efforts, in collaboration with the US government and other partners, to enhance domestic revenue sources.
“We want to cross the one billion mark in a very short time. Some economists and other experts have predicted that this can be done in two to three years. However, we are working overtime to ensure that we achieve that in a shorter time frame,” he said.
The focus is on overcoming recurring financial challenges to facilitate impactful development enabled by locally generated revenues, aligning with Sustainable Development Goals (SDGs).
“LRA is currently working with the US government and other partners as we strive to improve our domestic revenue base in a way that will surmount our recurrent that has bedeviled our current plight because it is only through these means that we can carry out meaningful development that are enabled by locally collected revenues — which is the path to achieving the SDGs,” he said.
Appreciating the US government’s multifaceted support for Liberia’s national development, particularly in revenue enhancement, Jallah highlighted the significance of the donation in empowering Liberia towards self-reliance and overall progress.
“This support from USAID will significantly bolster our efforts to modernize our systems and improve tax collection, which is crucial for Liberia’s development agenda,”
The support exemplifies a strategic partnership aimed at advancing Liberia’s autonomy and self-determination as a nation.
