Monrovia, Liberia - Liberia’s Acting Minister of Finance and Development Planning, Hon. Anthony G. Myers, has clarified the concept of budget disaggregation. He explained that budget disaggregation is not limited to institutions located in the counties but applies to any institution with active ongoing operations in those counties.
According to Minister Myers, "budget disaggregation aims to ensure that expenditures are effectively allocated where they are most needed."
He further emphasized that disaggregation is crucial for achieving allocative efficiency, which involves using natural resources and funds in the most effective manner to meet intended objectives.
The Ministry of Finance and Development Planning is committed to ensuring efficient budget execution. Minister Myers stated, “We at MFDP are focused on disaggregating and decentralizing our functions through the County Treasurer offices.
This approach will promote transparency in budget execution. We want to track how the US$738 million in the budget is spent across each county.” This process will also help citizens understand how government funds are being utilized for their benefit.
Minister Myers highlighted that fiscal decentralization is a key driver behind the government's goal of budget disaggregation. He noted that Chapter II of the Local Government Act outlines the creation of approximately nine different departments at the county level.
Deputy Budget and Development Planning Minister Hon. Tanneh G. Brunson mentioned that the Local Government Act, passed a few years ago, is gradually being implemented.
She explained that one of the main objectives of this devolution in Liberia is to bring decision-making closer to the people by establishing county governments. Developing the county budget is a significant way to facilitate decision-making at the local level.
Minister Brunson added, “These local government units will play a larger role as partners with the national government in delivering public goods and services.”
She also revealed that local governments will receive additional resources to fulfill their functions under the Local Government Act of 2020.
According to her, implementing this Act is an opportunity not only to transfer resources but also to strengthen decentralization and improve living conditions for people and communities.
She stressed the importance of managing the transition effectively and continuing support for local governments that lack the necessary resources to meet local demands.
Minister Brunson also emphasized the need for equity in the regional distribution of the national budget. “Equity will be a key element in the regional distribution of the proposed national budget.
An equitable regional budget ensures that local government units can build resilient communities and economies,” she said.
She highlighted that targeted regional allocations can help financially disadvantaged local governments fulfill their responsibilities effectively.
Dr. Romeo D.N. Gbartea, Director of the Fiscal Decentralization Unit at MFDP, welcomed representatives from various entities and outlined that the working session was part of the decentralization initiative mandated by the Local Government Act and Revenue Sharing Law Regulations. He explained that Tuesday’s discussion focused on the policy of the Local Government Act and its implementation in the counties.
In his remarks, Comptroller and Accountant General Hon. Elwood T. Netty expressed appreciation to the Deputy Minister of Budget and her team, as well as other stakeholders.
He highlighted the role of the Office of the Comptroller and Accountant General in the process.
Hon. Netty explained that County Treasuries would play a crucial role in supporting decentralization.
He described how the portal system would be used for processing salaries and procurement checks, allowing for efficient and timely transactions.
The system, which is already active and used in the health sector at the county level, will facilitate quick processing and feedback on check requests.
The Comptroller General noted that while the portal system streamlines the process, in its absence, communication via calls and emails would be required. The remarks were delivered on
Tuesday, August 13, during the “Budget Disaggregation Working Session,” which brought together officials and technicians from the Ministry of Finance and Development Planning, as well as representatives from various Ministries, Agencies, and Commissions (MACs).