Sierra Leone spent almost one-third of its domestically generated revenue on debt servicing in 2024, highlighting growing fiscal pressure despite a strong rise in government income, the Auditor-General said in a report.
According to the 2024 Auditor-General’s Report, total domestic revenue increased to NLe14.86 billion, up 30% from 2023, driven mainly by higher collections from income tax, goods and services tax (GST), and customs and excise duties.
However, the report said total financing costs, including debt service payments, rose more sharply, increasing by 49% to NLe4.73 billion in 2024.
As a result, the debt service-to-domestic revenue ratio climbed to 31%, up from 28% the previous year. This means that nearly one out of every three leones collected domestically was used to service debt obligations.
The Auditor-General warned that the rising debt burden could constrain the government’s ability to fund essential public services and development priorities if not carefully managed.
The findings add to concerns about fiscal sustainability as the government seeks to balance revenue mobilisation with growing debt repayment obligations.
By Joseph Turay
