Monrovia — The Government of Liberia is reporting steady economic progress in its 2025 Mid-Year Fiscal Review, with rising revenues, increased capital spending, and GDP growth projected at 5.6 percent. But despite the optimistic figures released by the Ministry of Finance and Development Planning in collaboration with the Central Bank of Liberia, widespread public discontent is growing over persistent hardship, rising prices, and a lack of visible improvement in everyday living conditions.
The mid-year review, released in July, presents a strong macroeconomic outlook, highlighting gains in key sectors such as mining, agriculture, manufacturing, and infrastructure. The report credits these improvements to ongoing reforms in energy, trade, and public financial management under the government’s flagship ARREST Agenda for Inclusive Development.
The government’s total budget for 2025 is recorded at US$880.66 million, a 19.2 percent increase over the previous fiscal year. Domestic revenue, which accounts for more than 91 percent of the total budget, is being driven primarily by tax collections.
Income and profit taxes are projected at US$306.44 million, international trade taxes at US$228.73 million, and goods and services taxes at US$88.44 million. Non-tax revenues are estimated at US$146.82 million.
While the report shows tax revenues exceeding projections by US$2.69 million, much of the overperformance stems from increased personal income tax deductions. Workers across the public sector are expressing concern that higher payroll taxes are further eroding already limited incomes, with few improvements in basic public services to justify the additional burden.
In contrast to rising collections from individual taxpayers, corporate contributions have declined. Concession-based taxes dropped by 41.5 percent during the review period, largely due to deferred payments from companies like China Union. The imbalance has sparked concerns about unequal tax enforcement and fairness in the government’s revenue strategy.
Non-tax revenues also underperformed. Of the expected US$82.52 million, only US$64.11 million was collected, and the Liberia Petroleum Refining Company was the only state-owned enterprise to remit dividends. Other sources, such as administrative fees and royalties, fell short, pointing to ongoing challenges in public sector efficiency and compliance.
Amid these developments, President Joseph Boakai acknowledged the growing economic strain faced by ordinary Liberians. During his address marking Liberia’s 178th Independence Anniversary at the Centennial Pavilion, the President announced the formation of a high-level Presidential Ad Hoc Committee to address the rising cost of living.
Vice President Jeremiah Kpan Koung was named as chair of the committee, which has been given a 45-day mandate to assess market conditions and recommend solutions. President Boakai described Koung as a trusted and experienced public servant with a strong background in business, saying the committee’s formation is part of broader efforts to restore stability and fairness in the economy.
“Transportation costs are too high. The prices of flour, sugar, and other essential goods continue to be a burden. Building materials are still expensive, making it hard for ordinary Liberians to construct homes and businesses,” Boakai said. He noted that while domestic production has increased, with rice and vegetable prices falling in some areas, the country’s revenue base remains limited and the economy continues to face structural challenges.
Despite increased capital allocations under the Public Sector Investment Program–up 58.2 percent from the previous year to US$106.72 million–the report shows that only 70.2 percent of those funds have been disbursed. Key investment areas include road construction (US$52.86 million) and agriculture (US$8 million), alongside health, school feeding, and water projects. But delays in procurement and weak implementation capacity have limited their reach.
Many citizens, especially in rural areas, report little evidence of these investments. Communities in Lofa, Bong, and Nimba counties cite poor road conditions, limited access to clinics, and lack of agricultural support as signs that national development is not reaching them.
Meanwhile, the majority of the budget continues to go toward recurrent expenses. Of the US$773.95 million allocated for recurrent spending, US$321.46 million had been disbursed by mid-year. Employee compensation remains the largest line item, followed by goods and services and debt servicing. Critics argue this spending structure leaves little room for transformational development or meaningful service delivery improvements.
Liberia’s public debt has also increased, standing at US$2.69 billion as of June 2025–up 4.95 percent since December 2024. Debt servicing for the period reached US$70.79 million, with a near-equal split between domestic and external creditors. While the government insists the debt remains within sustainable limits, economists warn that rising obligations could constrain future budgets, particularly in the absence of strong private sector growth and job creation.
The mid-year review provides little information on employment or labor market interventions. Youth unemployment, in particular, remains a pressing concern in a country where over 60 percent of the population is under the age of 25. Development experts say that unless macroeconomic growth translates into jobs, skills training, and income-generating opportunities, the country’s youthful population may continue to feel excluded from the so-called economic transformation.
Official Development Assistance (ODA) continues to play a major role in Liberia’s budget. So far in 2025, US$167.48 million has been disbursed to support sectors such as education, infrastructure, and human capital development.
While donor support helps to fill gaps, there is increasing pressure for the government to ensure better alignment of aid with long-term development goals and to reduce reliance on external funding.
On the streets of Monrovia and in markets across the country, citizens are voicing growing frustration. Traders in West Point speak of tax collectors increasing levies, even as sanitation and security remain poor. Farmers in Lofa say promises of tools and fertilizer have gone unfulfilled. Commuters complain about rising transport fares and crumbling roads. Many say that despite all the talk of GDP growth, life is becoming more expensive and more difficult.
“They say the country is growing,” a taxi driver said during a fuel stop in Paynesville. “But I don’t see it. Gas prices are high, food is expensive, and my passengers are fewer. What kind of growth is that?”
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The government continues to promote the ARREST Agenda as the guiding strategy for inclusive national development. The mid-year review cites progress in roads, digitalization, and education as indicators of momentum. But with the agenda’s implementation rated at only 53 percent at mid-year, the administration faces increasing pressure to translate policy into practice.
Analysts argue that to bridge the gap between the government’s fiscal achievements and public expectations, a shift in priorities is necessary. Fiscal policy, they say, must become more people-focused, with greater investment in basic services, equitable development, and job creation. There are also calls for progressive tax reform, stronger revenue enforcement on corporations and state-owned enterprises, and improved transparency in public spending.
With six months remaining in the fiscal year, the Boakai administration has an opportunity to turn positive indicators into real progress. The success of Vice President Koung’s newly established cost-of-living committee will be watched closely, as its findings may shape the administration’s next steps.
Until then, the contrast between upbeat economic figures and everyday hardship remains sharp. The 2025 Mid-Year Fiscal Review may meet the requirements of donors and international partners, but unless its projections are matched by practical improvements across the country, many Liberians will continue to question the value of the growth being celebrated in Monrovia.
