Liberia: Integrity Watch Liberia Raises Concerns Over Gender Equity, Tax Burden in Liberia’s US$1.539B FY2027 Draft Budget

MONROVIA – Integrity Watch Liberia (IWL) has raised concerns over the potential impact of the government’s proposed US$1.539 billion Fiscal Year 2027 national budget on women, small businesses, and low-income households, calling for fairer taxation, stronger gender-responsive financing, and greater accountability in public spending.

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By Francis G. Boayue

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Speaking at a press conference on Thursday, Integrity Watch Executive Director Harold Marvin Aidoo presented findings from the organization’s independent gender-responsive assessment of the draft budget, examining both government revenue projections and proposed expenditure allocations.

According to the assessment, the government is projecting approximately US$1.352 billion in core domestic revenue for FY2027, compared with US$1.182 billion in the FY2026 approved budget.

Projected tax revenue is expected to increase from US$752.72 million to approximately US$1.072 billion, representing an increase of US$319.8 million, or 42.5 percent.

While welcoming efforts to strengthen domestic revenue mobilization, IWL questioned whether the additional revenue would primarily come from improved compliance among large taxpayers and reduced revenue leakages or impose additional financial pressure on ordinary consumers, market women, and small businesses.

The organization identified proposed reforms, including the transition from Goods and Services Tax (GST) to Value Added Tax (VAT), taxation of digital financial services, property valuation reforms, and enhanced electronic tax invoicing, as measures requiring careful assessment of their potential impact on vulnerable populations.

IWL also highlighted a projected 49.4 percent increase in international trade taxes, from US$280.77 million in FY2026 to US$419.39 million in FY2027, warning that additional import-related costs could affect consumer prices and small businesses.

On gender-responsive budgeting, the organization noted that 13 government spending entities submitted gender-responsive budget statements for FY2027, compared with nine in the previous fiscal year. However, these represent only about 11 percent of the 122 spending entities covered by the proposed budget.

The assessment further observed that the proposed allocation to the Ministry of Gender, Children, and Social Protection increased from approximately US$4.06 million in FY2026 to US$7.09 million in FY2027, representing about 0.46 percent of the total proposed budget.

Despite the increase, IWL called for clearer allocations and measurable targets for addressing sexual and gender-based violence, maternal

healthcare, girls’ education, child protection, and women’s economic empowerment.

The organization recommended that the Ministry of Finance and Development Planning (MFDP) and the Liberia Revenue Authority (LRA) conduct comprehensive gender and poverty impact assessments of proposed tax reforms, strengthen revenue collection from large taxpayers, and improve protections for micro and small businesses.

IWL also urged the National Legislature to scrutinize the projected increase in tax revenue, conduct dedicated gender-responsive budget hearings, and strengthen oversight of tax exemptions and incentives.

Aidoo said the success of revenue mobilization should not be measured solely by how much the government collects but also by who bears the tax burden and whether public resources improve citizens’ lives. “Liberia must raise revenue fairly, spend public resources equitably, and demonstrate results that improve the lives of all citizens,” Aidoo said.