Sierra Leone’s Parliament has approved the Supplementary Appropriation Act 2025, following a presentation by Minister of Finance, Sheku Ahmad Fantamadi Bangura, who outlined revised spending and revenue measures in response to emerging fiscal challenges.
The updated budget, themed “Fiscal Consolidation and Budget Credibility to Sustain Macroeconomic Stability,” seeks to reinforce the country’s economic stability while adjusting to shortfalls in domestic revenue and tighter international financial conditions.
Minister Bangura told lawmakers that while macroeconomic fundamentals have improved—with inflation falling to 7.1% and the Leone maintaining stability—fiscal pressures persist. Domestic revenue collection fell short by Le646.2 million, mainly due to underperformance in Goods and Services Tax (GST) and import duties.
“In light of these challenges, we’ve revised domestic revenue projections for 2025 down to Le17.9 billion, or 9.3% of GDP, from the original Le18.9 billion,” the minister said. “Total government expenditure and net lending have also been cut to Le31.3 billion, down from Le35 billion.”
Despite the fiscal tightening, Minister Bangura noted that Sierra Leone’s economy is expected to grow by 4.5% this year, driven by agriculture and services. He also reported a strong export performance in the first quarter of 2025, with $424.1 million in goods exported — an 11% increase over the same period in 2024, mainly from iron ore, diamonds, and agriculture.
The revised budget will reduce capital expenditure—particularly on domestically funded projects—while maintaining spending on energy subsidies, interest payments, and critical services. The government aims to keep the budget deficit slightly below target at 3.8% of GDP, down from 3.9%.
To address revenue challenges, the finance ministry plans to implement several measures in the second half of 2025, including:
• Enforcing the Minimum Alternate Tax and safe harbor rules for mining companies.
• Expanding the tax base by registering 5,000 new taxpayers.
• Rolling out electronic invoicing and fuel marking systems to tackle tax fraud.
• Improving reconciliation and collection of GST and customs duties.
Minister Bangura also raised concern over rising debt servicing costs, which consumed nearly 50% of domestic revenue in the first half of 2025. In response, the ministry will cut weekly borrowing, focus on longer-term bonds, and seek concessional loans and grants to reduce pressure on domestic financing.
“The supplementary budget is not an austerity plan,” the minister emphasized. “It is a consolidation framework to preserve our macroeconomic gains, safeguard budget credibility, and create room for targeted investment.”
He praised President Julius Maada Bio for steering the country’s economic reforms and reaffirmed government commitment to honoring its debt obligations while promoting stability.
The revised budget was passed by Parliament after debate, officially becoming law under the Supplementary Appropriation Act 2025.
By Feima Sesay
