President Weah should explain why the government has not increased its payments to domestic creditors by 170% (US $ 49m / US $ 28m) – Global News Network
The Liberian People’s Party (LPP) calls on President George Weah to explain why the government reduced public spending by 63% from US $ 115 million in 2019/20 to US $ 42 million in 2021, 2022 and 2023; and subsequently increased payments by 170% to domestic creditors in 2021, 2022 and 2023 respectively.
LPP accepts the theory and practice that the government can reduce allowances for “the use of goods and services” and increase payments to creditors. However, such a reduction should not interfere with the proper functioning of government or strangle the economy. The 63% reductions ($ 115 million minus $ 73 million) in “the use of goods and services in 2021, 2022 and 2023, as outlined in the budget, will affect both government operations and the economy. , predicted LPP.
These cuts are not good because they have reduced cash flow for small businesses such as newspapers, office equipment and supply stores, gas stations, restaurants, local farmers, etc. In addition, a substantial reduction (ie. Services) might not affect the payment of monthly salaries. However, paid employees may not function effectively as office supplies are limited, post visits and inspections are postponed, meetings with expatriates become difficult, etc.
HERE IS THE 2019/20, 2020/21, 2021/22 AND 2022/23 BUDGET CALENDAR
If LPP can ask, why did you cut 63% in “use of goods and services” to increase 170% payments to domestic creditors by 170%? For budget line No. 41 (domestic creditors), the payment increased from US $ 28 million in 2019/20 to US $ 77 million in 2020/21, to US $ 77 million in 2021/22 and to US $ 77 million million US dollars in 2022/23. Who are the national creditors? Is the Central Bank of Liberia (CBL)
state bank, one of the national creditors, as indicated under âTotal outstanding debt on page 58 of the CBL 2020 annual report? If the 2020 annual report is correct, the State Bank of Liberia (CBL) holds US $ 487 million of the total domestic debt of US $ 644 million. CBL’s records also indicate that a significant portion of debts owed to CBL were incurred many years ago. Therefore, LPP does not accept the decision to cut government spending and use savings to pay debts owed to the Liberian Public Entity (CBL). Traditionally, businesses, households, or governments typically borrow money or use the money saved through reduced debt payments to fund programs, etc.
LPP also asks President Weah to explain why the budget documents do not declare cash (i.e. proceeds from treasury bills sold to domestic creditors) as sources of funding in 2019/20, 2020/21, 2021/22, 2022/23 respectively. The government record, which is page 58 of CBL’s 2020 Annual Report below, indicates that the government received US $ 10 million, US $ 65 million and US $ 98 million in 2018, 2019 and 2020 respectively . Yet budget documents do not mention cash as a source of funding in 2019, 2020, 2021, 2022 and 2023, with the exception of US $ 8.5 million reported in 2021.
The Liberian People’s Party is begging lawmakers and the executive branch to adjust these projections. Our leaders can adjust these projections and reduce any economic pain. Let us remember that rallies and demonstrations become inevitable if the government does not repair law enforcement vehicles, buy medical supplies, school supplies, equipment for firefighters, and build bridges. , etc.
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