Liberia Government: Admits Fiscal Decentralization Gaps Remain Unimplemented

• Liberia's Deputy Finance Minister Anthony G. Myers admitted that fiscal decentralization efforts remain largely unimplemented despite existing legal frameworks.
• Key laws like the Liberia Local Government Act of 2018 and the Liberia Revenue Sharing Law of 2022 have established the foundation for local financial autonomy.
• Implementation of the Liberia Revenue Sharing Law 2022 is incomplete, with its governing regulations still awaiting validation.
• The government has established four Liberia county treasuries and plans to expand to ten by Fiscal Year 2027 to improve local public financial management.
• Myers emphasized that effective decentralization requires financial authority, stating that "power without financial authority is just centralization in disguise."

Power without financial authority is just centralization in disguise.

Despite years of concerted efforts aimed at shifting political and financial authority from the capital city of Monrovia to Liberia's 15 counties, the government has formally admitted that its fiscal decentralization framework remains largely unimplemented. Anthony G. Myers, the Deputy Finance Minister for Fiscal Affairs, publicly acknowledged the limited progress in translating legal and policy provisions into tangible outcomes. This admission came during a fiscal decentralization training workshop for journalists held on Thursday, September 10, in Buchanan, Grand Bassa County.

Myers underscored the significant disparity between established frameworks and actual results, stating that very little has been delivered on the fiscal decentralization provisions of the law in terms of achievements and outcomes. He emphasized that while the foundational elements for decentralization are in place, the critical challenge lies in operationalizing these structures to empower counties with greater control over resources and enhance their capacity to deliver essential services closer to citizens. Myers highlighted the fundamental importance of financial authority in this process, asserting that "power without financial authority is just centralization in disguise."

The Liberian government has indeed established a robust legal and administrative architecture designed to support decentralization. This includes the Liberia Local Government Act of 2018, which mandates the devolution of local government responsibilities, primary service delivery, and development planning to counties, districts, and cities. Additionally, the Liberia Revenue Sharing Law of 2022 provides the legal basis for local governments to access various revenue streams, such as own-source revenues, transfers from the central government, social development funds, and grants from development partners.

However, the implementation of the Liberia Revenue Sharing Law 2022 remains incomplete. Deputy Minister Myers disclosed that while regulations governing the law have been drafted and reviewed by a technical working group, they are still awaiting official validation. Furthermore, county councils have been established in all 15 counties, tasked with approving local financial plans, county budgets, development plans, and ordinances for local taxes. Despite these foundational steps, Myers conceded that the overall fiscal decentralization process continues to face significant implementation gaps, particularly concerning the practical application of public financial management principles at the local level.

To mitigate the identified challenges and advance Liberia's public financial management, the government is actively working on specific mechanisms, notably the establishment and expansion of Liberia county treasuries. These treasuries are designed to bring financial management closer to local authorities, thereby reducing the costs and delays traditionally associated with processing payments through Monrovia. The Ministry of Finance and Development Planning initiated this effort by establishing four county treasuries in 2016, located in Grand Bassa, Margibi, Bong, and Nimba counties.

These existing treasuries are staffed by dedicated budget and finance officers who are responsible for preparing monthly and quarterly allotments and disbursements for county administrations and county health systems. Looking ahead, the government projects that by the end of Fiscal Year 2027, there will be 10 functional county treasuries. These expanded operations are intended to serve all 15 counties and process local payments for at least 10 spending entities. Concurrently, efforts are underway to strengthen local revenue mobilization, exemplified by real property mapping initiatives undertaken by the Liberia Revenue Authority, initially in Margibi County.

Lawyers advising entities operating in Liberian counties should note that despite existing laws like the Revenue Sharing Law 2022, actual fiscal decentralization remains largely unimplemented, potentially affecting local project funding, tax compliance, and administrative efficiency. Clients may face continued reliance on central government processes for financial matters at the local level until these gaps are addressed.

Source: Original reporting via local media