By: Aminata Sesay
On Tuesday, 29th July 2025, the Parliament of the Republic of Sierra Leone passed the Supplementary Appropriation Act 2025 into law, following its presentation by the Minister of Finance, Hon. Sheku Ahmed Fantamadi Bangura. The supplementary budget is intended to ensure fiscal consolidation, budget credibility, and alignment with current economic realities.
Presenting the revised expenditure framework, Minister Bangura cited improved macroeconomic indicators such as reduced inflation, a stabilized exchange rate, and declining treasury bill rates as key justifications for the adjustment. He noted that the overall budget deficit had been revised downward from 3.9% to 3.8% of GDP, reducing reliance on domestic borrowing.
“This supplementary budget will support macroeconomic stability by adjusting expenditures in line with actual revenue performance in the first half of the year,” the Minister said.
He referenced the legal basis for the supplementary estimates under Section 112(3) of the 1991 Constitution and Section 42(1)(a) of the Public Financial Management Act, 2016.
Minister Bangura reported that the economy, having recovered from the COVID-19 pandemic, is projected to grow by 4.5% in 2025, led by expansion in agriculture and the service sectors. Inflation, he noted, had dropped significantly from 54.5% in October 2023 to 7.1% in June 2025 due to exchange rate stability, increased food production, and coordinated fiscal and monetary policies.
Despite the government’s optimistic outlook, several Members of Parliament raised strong objections.
Hon. Aaron Aruna Koroma, a senior opposition MP, questioned the credibility of the government’s claims, particularly in light of significant funding cuts to critical sectors like education, youth empowerment, and agriculture.
“You don’t claim your economy is improving while slashing funds for essential services,” he said. “Teaching and learning materials haven’t been supplied, and school subsidies for the current academic year are unpaid.”
Koroma revealed that allocations for youth empowerment were reduced from Le19.2 million to Le11,000, and funding for agriculture fell from Le747 million to Le91 million. He also criticized the substantial increase in spending under the Office of the President, alleging the supplementary budget was being used to legitimize funds already spent without parliamentary approval.
“This appears to be a mechanism to legalize retrospective expenditures, not to address real national priorities,” he added.
In contrast, Hon. Mustapha Sellu praised the government’s management of the economy, particularly its efforts in reducing inflation and maintaining currency stability.
“These are real economic achievements that reflect responsible fiscal policy,” Sellu said, urging colleagues to recognize progress made by the Ministry of Finance and the Bank of Sierra Leone.
In response to concerns, Minister Bangura stressed that the supplementary budget adhered strictly to constitutional and legal procedures and reflected the updated macroeconomic environment.
“When key assumptions change, it is our duty to return to Parliament with revised figures,” he explained.
He attributed a revenue shortfall of nearly Le1 billion to compliance challenges, changes in economic assumptions, and inefficiencies in the current tax system. The Minister outlined plans to modernize tax administration, including the deployment of 5,000 GST machines and monitoring systems for the telecom and petroleum sectors.
“We are working to reduce human interference in public finance and close all revenue leakages,” he stated. “The aim is not austerity, but fiscal discipline.”
He clarified that salaries, essential services, and transfers have been preserved, while domestic capital expenditures especially those affected by the rainy season have been scaled down. Development partner–funded infrastructure projects, he added, will continue as planned, while others will be revisited in the 2026 national budget, now under consultation.
Addressing criticisms regarding youth and agriculture cuts, he said: “This is a mid-year adjustment. Programmatic interventions for those sectors will be prioritized in the upcoming budget after broader consultation.”
On the increase in allocations to the Office of the President, Bangura affirmed:
“The Constitution allows for revised estimates when allocations shift. What we’ve done is bring those changes back to Parliament for legal authorization.”
Minister Bangura concluded by stressing the importance of maintaining fiscal credibility with international partners such as the IMF, World Bank, and EU.
“Our development partners are closely monitoring our fiscal trajectory. This supplementary appropriation is a signal that we are committed to sustaining our economic progress,” he said.
The Supplementary Appropriation Act 2025 was passed with majority support. The original 2025 budget amounted to Le27,716,357,400, while the supplementary appropriation adds Le14,461,760,400, bringing the total revised expenditure for the 2025 financial year to over Le42 trillion.
Attention now shifts to implementation and oversight, as the government seeks to maintain economic stability and deliver essential services in the second half of the year.