By: Thaimu Bai Sesay
The Budget Advocacy Network (BAN) has in its review of the FY2025 National Budget update published on the 26th November 2024, commended the Government of Sierra Leone for its significant strides in stabilizing the economy, particularly its success in reducing inflation, narrowing the trade deficit, and stabilizing the exchange rate.
In its review of the FY2025 National Budget, BAN lauded these achievements as critical steps toward fostering economic resilience and improving livelihoods, while also raised concerns on certain aspects of the budget that needs careful considerations.
According to BAN, inflation dropped from a staggering 54.5% in October 2023 to 20.2% by September 2024—a remarkable achievement that has eased some of the pressures on household incomes. The trade deficit also narrowed significantly from $286.4 million in the first half of 2023 to $248.1 million in the same period in 2024, reflecting efforts to strengthen the country’s balance of trade. Additionally, the stabilization of the exchange rate has contributed to fostering a conducive environment for investment and economic growth.
“These gains are a testament to the government’s commitment to addressing the country’s economic challenges. They lay a strong foundation for advancing fiscal stability and sustainable development,” BAN stated.
The Budget Advocacy Network also praised the government’s proactive steps in managing the rising wage bill, emphasizing the importance of fair remuneration for public servants while ensuring fiscal discipline. The wage bill, which is projected to rise from NLe 6.5 million in 2024 to NLe 7.6 million in 2025, reflects the government’s focus on improving public service delivery.
BAN highlighted that tying wage increases to productivity and phasing out non-essential recruitments would enhance efficiency and free up resources for critical sectors such as healthcare and education.
“This balanced approach demonstrates the government’s recognition of the need to reward public servants while safeguarding the sustainability of the national budget,” BAN noted.
BAN underscored the government’s continued investment in the health sector, describing it as vital for the country’s development. While urging a more significant allocation toward achieving the Abuja Declaration’s 15% target, BAN acknowledged the progress made in improving healthcare infrastructure and called for a sustained focus on primary healthcare and preventive services.
“Investing in health is an investment in the future of Sierra Leone. A healthy population is the cornerstone of sustainable development,” BAN emphasized, urging the government to ensure transparent procurement and maintenance of essential medical equipment.
While commending the government’s economic achievements, BAN encouraged greater transparency in reporting how funds from newly reinstated taxes are utilized. It highlighted the importance of regular updates to the public on the revenue generated and its impact on sectors such as agriculture and infrastructure.
BAN also acknowledged the government’s initiatives to improve budget credibility and emphasized the importance of sticking to planned expenditures to ensure the delivery of essential services.
In its conclusion, BAN encouraged all stakeholders to build on the economic progress achieved thus far. It reaffirmed its commitment to working collaboratively with the government, civil society, and development partners to ensure the FY2025 budget supports inclusive growth, transparency, and accountability.
“The strides made in reducing inflation and stabilizing the economy are commendable. They reflect the government’s dedication to improving the lives of Sierra Leoneans. Moving forward, we must maintain this momentum to address the challenges that remain,” BAN stated.
With its economic gains as a foundation, Sierra Leone is determined to make further progress toward sustainable development. BAN remains optimistic that with concerted efforts, the FY2025 budget can drive positive change for all citizens.