The Government of Liberia has adopted two critical Public Financial Management (PFM) regulations aimed at enhancing governance and the efficient management of public resources. The amended and Restated Public Financial Management Regulations and the Revenue Sharing Regulations were officially endorsed during an emergency Cabinet meeting held at the Executive Mansion on Friday, September 13, 2024.
This adoption aligns with the Government's ongoing efforts to strengthen Liberia's public financial management systems as part of the 2024–2027 Public Financial Management Strategy. The Amended and Restated PFM Regulations serve as the key implementing instrument for the Amended and Restated PFM Law of 2019. This regulatory framework supports broader goals of fiscal transparency, accountability, and effective resource management in Liberia.
Significant structural changes introduced by these regulations include a clear distinction between the roles of the Comptroller and Accountant General from the Department of Fiscal Affairs. This separation aims to enhance oversight and reduce conflicts of interest, ensuring independent financial oversight.
In line with Liberia's decentralization policy, these regulations delegate revenue generation and expenditure management functions to local government authorities. This shift is intended to promote greater local accountability and improve public service delivery efficiency at regional and local levels.
The Revenue Sharing Regulations provide a comprehensive framework for implementing the Revenue Sharing Law of 2021, which is part of the Local Government Act but had been hindered by a lack of necessary regulations. These new regulations outline mechanisms for equitable revenue distribution between central and local governments:
- Local governments will have greater access to revenue generated from public services within their jurisdictions.
- Revenues derived from natural resource extraction will be shared between central and local governments, giving local authorities a stake in economic benefits generated by resources within their territories.
- A portion of real estate taxes and fees will be allocated to local governments, empowering them to reinvest in local development projects and public services.
These measures are designed to promote fiscal decentralization, empowering local governments to manage their financial resources effectively in accordance with the Local Government Act.
The adoption represents a significant milestone in Liberia's efforts to strengthen its public financial management architecture. These instruments are expected to support decentralization efforts, foster economic growth, and promote good governance across all levels of government.
“By ushering in these financial management instruments, it is my Administration's effort to ensure that necessary tools and frameworks are in place to guarantee fiscal responsibility, equitable revenue sharing, and transparent governance across Liberia,” remarked President Boakai.
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