Fiscal Strategy Statement Fss

GOVERNMENT OF SIERRA LEONE
MINISTRY OF FINANCE
FISCAL STRATEGY STATEMENT (FSS)

FY 2024-2028
SHEKU A.F. BANGURA
MINISTER OF FINANCE
In fulfilment of Sections 21 & 23 of Public Financial

Management Act. 2016
August, 2023
Table of Contents
INTRODUCTION ..................................................................................................................................1
1. GOVERNMENT’S FISCAL OBJECTIVES, 2024-2028 ..........................................................3
2. RECENT ECONOMIC TRENDS ..............................................................................................4
2.1 Recent Global Economic Developments, Outlook and Risks ....................................................4
2.2 Domestic Macroeconomic Economic Developments, 2021-2022 and First Half of 2023 ........5
2.3 Comparison between Previous Macroeconomic Forecasts and Actual Outturns, 2019-2022 ....8
2.3.1 Real Gross Domestic Product (GDP) ....................................................................................... ..9
2.3.2 Inflation .......................................................................................................................................9
2.3.3 Domestic Revenue, Expenditures and Fiscal Deficit....................................................................10
2.3.4 Public Debt....................................................................................................................................10
3. MEDIUM-TERM MACROECONOMIC FORECASTS, 2024-2028 ......................................12
4. FISCAL POLICY AND STRATEGY .......................................................................................17
4.1 Fiscal Developments in 2018-2022 and First Half of 2023 ......................................................17
4.2 Progress in Achieving Fiscal Objectives During 2018-2022 ....................................................19
4.3 Medium-Term Fiscal Forecasts, 2024-2028..............................................................................20
4.3.1 Domestic Revenue Projections..................................................................................................20
4.3.2 Local Council Revenue Projections (2024-2028) .....................................................................22
4.3.3 Government Expenditure Projections ..........................................................................................24
4.4 Policy Measures for Achieving the Medium-Term Fiscal Objectives.......................................28
4.4.1 Measures for Achieving the Fiscal Deficit Target .....................................................................28
Medium-Term Revenue Mobilisation Measures.........................................................................28
Domestic Revenue Mobilization at the Local level ......................................................30
Medium-Term Expenditure Management and Control Measures .................................31
4.4.2 Measures for Achieving the Public Debt Target ..........................................................................34
5.0 MEDIUM-TERMFSS EXPENDITURE FRAMEWORK (MTEF) .........................................37
5.1 Medium-Term Expenditure Priorities and Ceilings, 2024-2028................................................37
5.2 Non-Salary, Non-Interest Recurrent Expenditures Ceilings/Allocations...................................37
5.3 Domestic Capital Budget Allocations/Ceilings .........................................................................37
6.0 FISCAL RISK STATEMENT ..................................................................................................39
6.1 Macroeconomic Risks ...............................................................................................................39
6.1.1 Volatile Economic Growth.........................................................................................................39
6.1.2 Higher Inflationary Pressures ....................................................................................................40
6.1.3 Exchange Rate Volatility............................................................................................................40
6.1.4 Rising Interest rates on Government Securities.........................................................................40
6.1.5 Adverse Terms of Trade ..............................................................................................................41
6.2 Specific Fiscal Risks.....................................................................................................................41
6.2.1 Contingent Liabilities of State-Owned Enterprise ......................................................................41
6.2.2 Public Private Partnership (PPP) Projects ...................................................................................42
6.2.3 Public Sector Litigation ...............................................................................................................43
6.2.4 Policy Risks .................................................................................................................................43
6.3 Fiscal Risks Mitigating Measures ...............................................................................................43
6.3.1 Mitigating Macroeconomic Risks .............................................................................................43
6.3.2 Mitigation Strategies for SoEs Fiscal Risks and Guarantees ....................................................44
6.1.4 Mitigating Risks from Natural Disasters ..................................................................................45
6.1.5 Strengthening Policy Implementation .......................................................................................45
6.3.6 Measures to Mitigate PPP Risks ..................................................................................................46
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TABLES
Table 1. Medium-Term Sectoral Growth Rates: 2023-2028 ...........................................................................12
Table 2. Medium-Term Macroeconomic Forecasts: 2023-2028 .....................................................................14
Table 3: Medium-Term Macroeconomic Projections: 2024-2028 ..................................................................14
Table 4: Domestic Revenue Projections (millions NLe) ................................................ ..............................21
Table 5: Domestic Revenue Projections (% of GDP) .....................................................................................22
Table 6: Local Council Revenue Projections: FY2024-2028 (NLe) .................................................. ............22
Table 7: Government Expenditure Projections (Million NLe) ........................................................................26
Table 8: Government Expenditure Projections (% of GDP) ...........................................................................27
FIGURES
Figure 1: Chart showing the GDP Growth Rate, 2011-2022 .............................................................................6
Figure 2: Chart showing the Trend in Inflation, 2017-2022 ..............................................................................7
Figure 3: Chart showing trend of Public Debt between 2017-2022 ..................................................................8
Figure 4: Chart showing the comparison between the forecast and outturns, 2019-2022................................11
Figure 5: Chart Showing the Medium Term Macroeconomic Projections 2023-2028 ...................................15
Figure 6: Chart showing trends in Domestic Revenue and Expenditures: 2017-2022 ...................................18
Figure 7: Chart showing trends in Budget Deficit: 2017-2022 ......................................................................19
Figure 8: Chart showing the Medium Term Fiscal Projections: 2024-2028 ...................................................27
Figure 9: Chart showing Non-Salary Non-Interest Recurrent Expenditure for Government’s BIG FIVE
Priorities...........................................................................................................................................................38
Figure 10: Chart showing the proportion of Domestic Capital Expenditure for Government’s BIG FIVE
Priorities ................................................................................................. .......................................................38
Annexes
Annex 1 & 2 2024 FSS (1)...............................................................................................................................47
Annex 2 & 2 2024 FSS (2)...............................................................................................................................53
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Fiscal Strategy Statement (Fss) Fy 2024-2028
INTRODUCTION
The main purpose of the Fiscal Strategy Statement (FSS) is to provide Cabinet and Parliament with
a document that outlines the fiscal objectives and fiscal strategy of Government for the medium-
term. The FSS provides early indications to Cabinet and Parliament of the main revenue and
expenditure targets and budget allocations to Ministries, Departments and Agencies (MDAs) for
the medium-term. This will allow Cabinet to ensure that sectoral budgetary allocations are
consistent with the priorities of Government.
Section 21 (1) of the Public Financial Management (PFM) Act, 2016 requires a new Government
that has taken over the reigns of power to prepare its first Fiscal Strategy Statement (FSS) covering
a five- year period in alignment with the duration of the term of the Government. The FSS should
contain the fiscal objectives of Government and measures for achieving those objectives over the
five-year period (2024-2028). The FSS should be submitted to Cabinet for approval and
subsequently to Parliament for information only.
Section 23 (1) of the Public Financial Management Act (PFM Act), 2016 also requires the Minister
of Finance to prepare an Annual Fiscal Strategy Statement (FSS), not later than the end of the
seventh month of any financial year. The Annual FSS specifies the fiscal objectives of Government
for a three-year period and policies to be adopted in the annual budget.
The 2020 Finance Act amended section 23 (1) of the PFM Act, 2016 to allow the Minister of
Finance to submit the FSS to Cabinet for approval and lay it before Parliament on the tenth month
of every financial year. This was necessitated by the fact that the discussions between the
Government of Sierra Leone and the International Monetary Fund (IMF) on the mediumterm
macroeconomic framework, which underpins the FSS and the Budget for the following year are
usually concluded in September of the current year.
To comply with sections 21 (1) and 23 (1) of the PFM Act, 2016, the first Minister of Finance during
the first term of the current administration prepared and submitted to Cabinet and Parliament
the first FSS covering 2019-2023 in 2018. Subsequent Ministers of Finance prepared the respective
annual FSSs for 2020, 2021, 2022 and 2023 financial years and submitted to Ca binet and
Parliament accordingly.
This 2024-2028 Fiscal Strategy Statement, which is the first in the second term of the same
Administration is prepared in fulfilment of section 23 (1) the PFM Act, 2016 and contains the fiscal
objectives of the Government for the next five years (2024-2028) and proposes measures for
achieving those objectives over the period. As in previous years, the FSS (2024-2028) is hereby
submitted to Cabinet for approval. Following Cabinet approval, the FSS will be presented to
Parliament for information only. Consistent with section 23 (1) (a) to (k) of the PFM Act, 2016, this
FSS is organized as follows:
Following the introduction, section 1 presents the broad fiscal objectives of Government. Section
2 provides an overview of recent economic trends, including recent global and domestic
macroeconomic developments, outlook and risks to the outlook. The section also presents a
comparison between the macroeconomic forecasts in the previous FSSs and the actual outcomes.
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Section 3 presents the Medium-term Macroeconomic Forecasts and assumptions underlying the
forecasts. Section 4 describes Fiscal Policy and Strategy for the Medium-term. The section
discusses fiscal developments in recent years including the current year, progres s in meeting the
fiscal objectives stated in previous FSS (2019-2023). The section also presents the Medium-term
Fiscal Forecasts and assumptions underlying the forecasts. The section also describes measures
for achieving the fiscal objectives, which include revenue enhancing, expenditure and debt
management policies/ measures. Section 5 presents the Medium-Term Expenditure Framework
(MTEF) and Public Investment Programme (PIP) with details of allocations of non-salary,
noninterest and domestic capital expenditures to MDAs for the medium-term (2024-2028) in line
with Government priorities.
Section 6 presents the Fiscal Risk Statement. The Fiscal Risk statement analyses the
macroeconomic and specific risks that are likely to derail the attainment of the fiscal objectives
specified in the FSS and measures to mitigate these risks.
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1. GOVERNMENT’S FISCAL OBJECTIVES, 2024-2028

The fiscal objectives of Government for the medium-term (2024-2028) are specified in the are
consistent with the principles of Responsible Fiscal Management enshrined in section 2 (2) of the
Public Financial Management (PFM) Act 2016 as follows:
 Achieve and maintain prudent levels of public debt so as not to impose an inequitable
burden on future generations;
 Achieve and maintain an appropriate balance between revenue and expenditures of the
general Government
 Formulate and implement fiscal policies to maintain macroeconomic stability• Provide
timely, reliable and adequate information to the public on fiscal objectives, data, and risks
to ensure transparency in budgetary and financial management of the general
Government; and
 Manage prudently, the fiscal risks faced by Government
In line with the principles of Responsible Fiscal Management and the need to achieve fiscal and
debt sustainability, Government will adopt the following key fiscal objectives for the medium-
term (2024-2028):
(i) Reduce total public debt from 98.8 percent of GDP in 2022 to 92.2 percent of GDP in
2023 and further down to 66.6 percent of GDP by the 2028 fiscal year.
External debt will be reduced from 67.7 percent of GDP in 2022 to 67 percent of GDP
in 2023 and further to 45.6 percent of GDP in 2028. Domestic debt will fall from 31.3
percent of GDP in 2022 to 25.2 percent of GDP in 2023 and further down to 20.9
percent of GDP in 2028.
(ii) Reduce the overall budget deficit, including grants, from 10.9 percent of GDP in 2022
to 5.6 percent of GDP in 2023 and to a level not exceeding 3 percent of GDP by the
2028 fiscal year
The attainment of the above fiscal objectives and targets will enable Government to restore fiscal
and debt sustainability, in line with the principles of responsible fiscal management. The choice
of the two main fiscal targets is informed by the fact that they mutually reinforced each other.
The attainment of the public debt target depends largely on the reduction of the budget deficit.
To support the attainment of the (2) primary fiscal objectives and targets, Government will also
aim to achieve the following supplementary fiscal targets:
(i) Increase domestic revenue to 20 percent of GDP by 2028;
(ii) Contain Government expenditures at average of 23 percent of GDP by 2025. This

implies reducing Government expenditures gradually from 30 percent of GDP in 2022
to 25.2 percent in 2023 and further down to 22.5 percent of GDP by 2025.
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2. RECENT ECONOMIC TRENDS

2.1 Recent Global Economic Developments, Outlook and Risks
Successive shocks in recent years, faltering activities in China, weak global manufacturing activity
and rapid rise in interest rates are weighting on growth in 2023. While the global economy
continues to gradually recover from the COVID-19 pandemic, the war in Ukraine continues to
linger. According to the International Monetary Fund (IMF) July World Economic Outlook (WEO)
update, the global economy is projected to slow down to 3.0 percent in 2023 and 2024, from 3.5
percent recorded in 2022.
The slowdown is concentrated in advanced economies, where growth will fall from 2.7 percent in
2022 to 1.5 percent this year and remain subdued at 1.4 percent next year. The euro area, still
reeling from last year’s sharp spike in gas prices caused by the war, is set to decelerate sharply.
In the US, growth remained surprisingly resilient in the first two quarters of the year, buoyed by a
tighter labour market which continue supporting consumer spending and business fixed
investment. However, growth is projected to slow down to 1.1 percent in 2023 and improve
slightly to 1.4 percent in 2024. After the strong rebound in the Chinese economy late last year,
following the sudden reopening of the economy, high frequency data and sentiment indicators
are pointing to an economy that is flirting with recession amid still unresolved difficulties in the
property and real estate market coupled with decline in consumer and business spending. Growth
is forecast to reach 5.2 percent in 2023, from 3.2 percent in 2022 and moderate slightly to 4.5
percent in 2024. In the euro area, growth is projected to decline to 0.8 percent in 2023 and rise
modestly to 1.2 percent in 2024, from 3.4 percent growth recorded in 2022. By contrast, growth
in emerging markets and developing economies is still expected to pick-up with yearon-year
growth accelerating from 3.1 percent in 2022 to 4.1 percent this year and next
Growth in Sub-Sahara Africa is projected to is projected to slow down to 3.5 percent in 2023
underpinned by the ongoing war in Ukraine, slowdown in China, weak global economic conditions,
tighter financial conditions and still elevated inflationary pressures in the region.
Although the global economy remained remarkably resilience in the first half of the year in the
face of multiple shocks, risks to the near-term and medium-term outlook persist and are tilted to
the down side. Of particular concern are the following ris ks:
First, signs are growing that global activity is losing momentum. The global tightening of monetary
policy has brought policy rates into contractionary territory. This has started to weigh on activity.
Second, in China, the recovery following the re-opening of its economy shows signs of losing steam
amid continued concerns about the property sector, with implications for the global economy.
Third, inflation especially core inflation remains stubbornly high relative to central bank target.
Core inflation, which excludes energy and food prices, remains well above central banks’ target.
Of greater concern, is that core inflation in advanced economies is expected to remain unchanged
at a 5.1 percent in 2023 before declining to 3.1 percent in 2024.
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Fourth, the rise of geo-economic fragmentation with the global economy splitting into rival
blocs, will most harm emerging and developing economies that are more reliant on an
integrated global economy, direct investment, and technology transfers.
Fifth, insufficient progress on the climate transition will leave poorer countries more exposed to
increasingly severe climate shocks and rising temperatures, even as they account for a small
fraction of global emissions.
Although on a downward trajectory, headline inflation and core inflation remain high and sticky
despite the significant monetary policy tightening driven by elevated food and fertilizer prices
which has exacerbated food insecurity and malnutrition for low-income households. Global
inflation is projected to decline from 8.7 percent in 2022 to 6.8 percent in 2023, and 5.2 percent
in 2024. Inflation for developed economies and emerging and developing countries is projected
to slow down to 6.6 percent and 8.8 percent, respectively in 2023.
Global commodity prices to fell 14 percent in the first quarter of 2023, and by the end of March,
they were roughly 30 percent below their historic peak in June 2022. The surge in prices after
Russia’s invasion of Ukraine has largely been unwound on a combination of slowing economic
activity, favorable winter weather, and a global reallocation of commodity trade flows. For the
remainder of this year, commodity prices are forecast to remain broadly unchanged. However,
prices are still expected to remain above pre-pandemic levels, which will continue to weigh on
affordability and food security. Upside risks to prices include possible disruptions in the supply of
energy and metals, intensifying geopolitical tensions, a stronger-than-anticipated recovery in
China’s industrial sector, and adverse weather events. Disappointing global growth and slower
than –expected growth in China are the major downside risks to inflation.
Iron ore prices jumped slightly to USD114.4 in July, from USD113.5 per m/t and USD105.2 in June
and May, respectively. The price for m/t of iron ore averaged around USD121.3 in 2022. After
averaging about USD99.8 in 2022, price for Brent crude declined to USD75.1 in April and further
declined to UD$74.7 in June before increasing to US$80.5. Rice (Thailand 5% broken) prices also
average around USD429.7 per m/t in 2022, the price of rice increased to USD495.0 and USD496.0
in May and June 2023, before rising sharply to USD524.0 in July 2023. Price for Urea fertilizer have
since returned to their pre-pandemic levels. After averaging around USD700.0 per m/t in 2022,
the price of one metric ton of Urea fertilizer-which is commonly used by our farmers declined to
USD287.5, before increasing to USD334.6 in July.
2.2. Domestic Macroeconomic Economic Developments, 2021-2022 and First Half of

2023
The Sierra Leone economy recovered strongly, growing by 5.3 percent in 2019 from the subdued
growth in 3.8 percent 2017 and 3.5 percent in 2018. The recovery was short-lived as the COVID19
pandemic broke out in 2020. The restrictions imposed to contain the pandemic adversely affected
economic activities and as a result, the economy contracted by 2.0 percent in 2020. Following the
relaxation of pandemic-related restrictions, resumption of iron ore production, and gradual
normalization of global supply chain disruptions, the economy rebounded strongly by 4.1 percent
in 2021. The fledgling recovery from the COVID-19 pandemic was again disrupted by
5
Russia’s invasion of Ukraine in early 2022, which exacerbated the pre-existing vulnerabilities.
Including global supply chain disruptions, rising food and energy prices and weakening of the
Leone. Consequently, the economic activities slowed down to 3.6 percent in 2022.
The economy continued to grapple with spillovers of the Ukraine crisis in 2023. In addition, the
elections-related uncertainties, weak purchasing power combined with fiscal adjustment
measures will weigh on growth in 2023. Hence, in spite of the expected increase in agricultural
production, economic growth is projected to moderate further to 2.7 percent in 2023.
Figure 1: Chart showing the GDP Growth Rate, 2011-2022
GDP Growth Rate , 2011-2022

25.0
20.0
15.0
Gr
10.0
ow
5.0
th
Rt 0.0
-5.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
ae
-10.0
-15.0
-20.0
-25.0
YEARS
After falling to 10.4 percent in 2020, inflationary pressures re-emerged in 2021 and persisted
throughout the year, reaching 17.89 percent in December 2021, reflecting the pass -through effect
of the rise of global food and energy prices and continuous depreciation of the Leone. These
factors coupled with monetary expansion continued to fuel inflation, which rose to 37.1 percent
in December 2022. Inflationary pressures persisted through-out the first half of 2023, with
inflation rising further to 44.8 percent in June 2023.
6
Figure 2: Chart showing the Trend in Inflation, 2017-2022
Inflation
40
35
30
Pe 25
rce
20
nt
15
10
5
0
2017 2018 2019 2020 2021 2022
Years
The current account deficit narrowed from 22.3 percent in 2019 to 6.3 percent in 2020 following
the receipt of COVID-19 related official inflows. Despite the improvement in the trade balance
due to increase in export receipts and official transfers, higher income outflows and payments for
services contributed to the widening of the current account deficit to 9.2 percent of GDP in 2022
from 8.7 percent in 2021.
The stance of monetary policy remained appropriately tight as BSL continue to raise interes t rate
to rein persistently high inflation, stabilize the exchange rate, build international reserves,
minimize the buildup of financial stability risks, whilst supporting the nascent recovery from the
multiple overlapping shocks. The BSL raised the monetary policy rate consecutively from 14.0 in
2021 to 17.0 in December 2022.
Although the stance of monetary policy appears to be relatively tight as indicated by the
successive increase in the monetary policy rate, monetary aggregates expanded during the review
period mainly to accommodate Government financing needs and provide liquidity to the banking
system. Broad money grew significantly by 38.2 percent in 2020 from 14.3 percent in 2019, before
moderating to 22.1 percent in 2021. The growth of broad money surged again to
41.1 percent in 2022, reflecting significant growth in net domestic asset of the banking system,
Net Domestic Asset grew sharp by 53.1 in 2022 from 27.0 percent growth in 2021; of which claims
to Government grew sharply by 43.0 percent, reflecting increased borrowing from the bank of
Sierra Leone and on-lending of IMF/ECF resources to support budget operations. Reserve money
of BSL also grew sharply by 25.6 percent in 2022 from 8.7 percent in 2021. This sharp growth in
RM in 2022 reflects increased claims on Government by the Bank of Sierra Leone.
Reflecting the increasing financing needs of Government, the stock of public debt increased from
69.8 percent of GDP in 2018 to 79.8 percent of GDP in 2021 and is estimated at 98.9 percent of
GDP in 2022. Of this, external debt increased to US$1.99 billion (51.1 percent of GDP) in 2021 and
67.7 percent of GDP in 2022 from US$1.68 billion (44.2 percent of GDP) in 2019. Domestic debt
decreased to US$1.11 billion (28.7 percent of GDP) in 2021 and 31.3 percent of GDP in 2022 from
7
US$1.15 billion (27.6 percent of GDP) in 2019. External debt accounted for 64 percent of total
public debt.
Of this, multilateral creditors accounted for 79.1 percent of external debt as at end December
2021, followed by bilateral creditors (12.6 percent) and commercial creditors (8.3 percent). About
67.9 percent of domestic debt is in short-term Government securities.
The growth in the stock of public debt in recent years is accounted for by the following reasons:
(i) widening of the budget deficit and other macroeconomic fundamentals largely due to global
shocks resulting in increased demand for both domestic and external financing; (ii) disbursement
of emergency support loans by development partners to complement Government’s resources in
mitigating the impact of COVID-19 on the population; (iii) loan disbursements by development
partners to support the implementation of projects in various sectors, including roads, electricity,
agriculture, education and health; and (iv) the inclusion of the verified stock of domestic
contractors’ arrears of about US$360.0 million inherited by the Government in 2018.
Figure 3: Chart showing trend of Public Debt between 2017-2022
Public Debt
%
OF
GD
P
2017 2018 2019 2020 2021 2022

YEARS
Total Publ ic Debt Domestic Debt Externa l Debt
2.3. Comparison between Previous Macroeconomic Forecasts and Actual Outturns,

2019-2022
In a highly integrated world economy, where real and financial shocks are easily and speedily
transmitted to the global economy, small open economies are particularly vulnerable to adverse
global developments and policy slippages which could be propagated to the domestic economy
and cause deviations of macroeconomic and budgetary outturns from their respective original
forecasts. More recently, health related pandemics and climate change concerns have emerged
as very important factors that could trigger variations between actual macro-fiscal indicators and
original projections. This section analyses the variation of actual macroeconomic and fiscal
outturns from their original forecasts produced by the Macro-Fiscal Working Group and the IMF
and published in the Fiscal Strategy Statements (FSS) for the period 2019-2021. The relevant
macroeconomic and fiscal variables include real GDP, inflation, budget deficit and public debt.
8
2.3.1 Real Gross Domestic Product (GDP)

Sierra Leone’s growth performance in recent years has been very volatile, characterised by periods
of high and low growth spells. This deviation in growth outturns from projections have become
more pronounced in recent years, amid heightened global uncertainties associated with the
outbreak of COVID-19 and Russia’s invasion of Ukraine. The increasing global uncertainties
coupled with the continuous disruptions to global supply chains and historic rise in international
food and energy prices has slowed growth, stoked inflationary pressures and continued to
complicate macroeconomic and fiscal management.
Real GDP was projected to grow by 5.1 percent in 2019 from the subdued growth of 3.5 percent
in 2018. Actual GDP growth was estimated at 5.5 percent in 2019, 0.4 percent higher than the
original forecast. The better-thanexpected economic growth reflected the increased mining
activities mining activities following resumption of iron ore mining as well as the expansion in
agriculture and services including communications, trade and tourism. The recovery of the
economy was initially projected to strengthen further by 4.2 percent in 2020. However, the
outbreak of the COVID-19 pandemic and the introduction of pandemic-related restrictions,
constrained economic activities. Trade and tourism were the hardest hit while agriculture and
mining also declined. As a result, the economy recorded a negative growth rate of 2.0 percent in
2020 instead of the positive growth rate initially anticipated. As the health situation improved and
restrictions removed, economic activities resumed, supported by the resumption of iron ore
production and the fledging revival in traveling and tourism, the economy was initially projected
to recover by 3.6 percent in 2021. Actual real GDP growth was estimated at 4.1 percent, 0.5
percent above the initial projection, reflecting the higher-than-expected mining output combined
with the recovery in agriculture, manufacturing, construction, travel, trade and tourism. The
fledgling recovery from COVID-19 was projected to strengthen further in 2022, but the recovery
was disrupted by Russia’s invasion of Ukraine. The economy was initially projected to grow by 5.9
percent in 2022 during the 3rd and 4th review under the IMF supported ECF programme, however
growth outturns slowed down to 3.6 percent amid heightened global uncertainties, underpinned
by disruptions to global supply chain and higher prices of international food and energy prices,
coupled with the continuous depreciation of the exchange rate and policy slippages.
2.3.2 Inflation
Inflation was broadly as projected in 2019. Actual end period inflation was 13.9 percent compared
to the projection of 14.0 percent. Inflation was initially projected to decline to 12.0 percent in
2020. However, the surge in inflation triggered by panic buying in March following the
announcement of the first COVID-19 lockdown, necessitated an upward revision of the target to
17.5 percent. End of period inflation declined to 10.4 percent in December 2020. The better-
thanexpected outcome was due to the uninterrupted supply of essential items supported by the
BSL Special Credit Facility, the relative stability of the exchange rate combined with the weak
private demand for goods and services. End of period inflation was initially projected to rise to
13.5 percent in 2021. After falling to 8.9 percent in March 2021, inflationary pressures re-emerged
in the second quarter of 2021. End of period inflation rose to 17.9 percent in 2021, reflecting the
rise in food and energy price, higher freight costs, and the continuous depreciation of the Leone
to the US dollar. Inflationary pressures were projected to increase slightly to 22.1 percent in 2022
from 17.9 percent in 2021. However, headline inflation reached 38.1 percent in 2022 amid
9
adverse external development underpinned by further disruption of global supply chains,

increased freight and shipping cost, post-pandemic hikes in international food and energy prices
coupled the continuous depreciation of the exchange rate.
2.3.3 Domestic Revenue, Expenditures and Fiscal Deficit

The fiscal deficit (including grants) was projected at 5.5 percent of GDP supported by
Government’s fiscal consolidation efforts, which began to yield positive results in 2018. Domestic
revenue was projected to increase to 14.1 percent of GDP while expenditure was programmed at
21.5 percent of GDP. The actual fiscal deficit (including grants) for 2019 was 3.1 percent of GDP,
lower than the initial projection of 5.5 percent of GDP, as domestic revenue collec ted of 14.6
percent of GDP was higher than original target of 14.1 percent of GDP. Total expenditures and net
leading amounted to 21.1 percent of GDP, broadly as budgeted. For 2020, the original budget
deficit (including grants) was projected at 2.6 percent of GDP, with domestic revenue projected
at 14.8 percent of GDP and total expenditures at 21.5 percent of GDP. However, due to the
outbreak of COVID-19 and the associated drop in economic activities, domestic revenue fell to
13.8 percent of GDP, whilst expenditures increased to 25.7 percent of GDP to accommodate
pandemic related expenditures. As a result, the budget deficit (including grants) widened to 5.8
percent of GDP, which is 1.6 percentage point above the initial projection. For 2021, the original
budget deficit (including grants) was projected to decline to 4.5 percent from 5.8 percent of GDP
in 2020. Domestic revenue was projected to increase to 14.1 percent of GDP while expenditures
were programmed to decline to 23.1 percent of GDP. Actual domestic revenues collected
increased to 15.7 percent of GDP due to the recovery in economic activities, unwinding of the tax
deferrals and one-off payment of iron ore royalties by the Sierra Leone Mining Company operating
at the Marampa Mines. Despite the improvement in revenues, the budget deficit widened to 7.4
percent of GDP. This was due largely to the sharp increase in expenditure to 28.1 percent of GDP,
5.0 percentage point above the budgeted amount due to the continued need to response to the
lingering impact of COVID-19. Fiscal outturns deteriorated sharply in 2022, reflecting higher prices
of goods and services, the continuous depreciation of the exchange rate and policy slippages in
the second half of the year. Domestic revenues were original projected to reach 14.7 in 2022,
however collections were only 13.0 percent of GDP. Total expenditures and net lending amounted
to 30.8 percent, which were also sharply higher than the original budget of 25.1 percent of GDP.
As a result, the budget deficit (including grant) deteriorated to 10.9 percent of GDP, 6.8
percentage points higher than the original ECF 5 th review forecast.
2.3.4 Public Debt

The total stock of public and publicly guaranteed debt was estimated at 71.8 percent of GDP in
2019, almost 10.0 percentage point above the original projection of 62.1 percent of GDP. This
deviation was as a result of the disbursement of programme and project loans to finance several
projects in key sectors.
Public debt was projected to rise slightly to 73.0 percent of GDP in 2020 from 71.8 percent of GDP
in 2019. The disbursement of emergency support loans under the Rapid Credit Facility of the IMF
as part of efforts to mitigate the impact of COVID-19 on the fiscal and external accounts partly
accounted for the increase in the actual public debt to 76.3 percent of GDP, 3.3 percentage points
above the original projection. For 2021, public debt was projected to decline slightly to 72.5
percent of GDP from 76.3 percent of GDP in 2020. However, the outturn for 2021 was estimated
10
at 78.8 percent of GDP, 6.2 percentage point above the initial projection. Domestic debt increased
to 28 percent of GDP in 2021 compared to the projection of 22.0 percent of GDP. The deviation
was driven mainly by the increase in domestic borrowing to finance the budget deficit. External
debt amounted to 50.5 percent of GDP compared to the projection of 51.1 percent. The total
stock of public and publicly guaranteed debt including verified arrears was estimated at 98.9
percent of GDP in 2022, almost 18 .0 percentage points above the original projection of 80.8
percent of GDP. This deviation was as a result of the disbursement of programme and project
loans including the on-lending of ECF resource to finance several projects in key sectors.
Figure 4: Chart showing the comparison between the forecast and outturns, 2019-2022
Comparison between Forecast and Outturns

100
80
% 60
of
GD 40
P
20
0
2019 Proj 2019 Act 2020 Proj 2020 Act 2021 Proj 2021 Act 2022 Proj 2022 Act
- 20
Years
Rea l GDP Growth Infl ation

Domestic Revenue (% of GDP) Tota l Expenditures a nd Net Lending (% of GDP)
Overa l l Fiscal Defi cit (incl. grants), % of GDP) Publ ic Debt (% of GDP)
11
3. MEDIUM-TERM MACROECONOMIC FORECASTS, 2024-2028
Despite the current challenging economic environment, the medium- term outlook of the economy is
promising. The economy is projected to recover strongly from the multiple shocks and associated
global economic uncertainty and supply chain disruptions on the back increased agricultural and
mining output, investment in infrastructure, and broad sectoral and structural reforms including
business regulatory and financial sector reforms. The expected restoration of macroeconomic
stability will lay the foundation for the recovery of the economy. However, downside risks to growth
remain. These include the pro-longed Ukraine crisis, geo-economic fragmentation, further rise in the
price of food and fuel, likelihood of the emergence of another pandemic/epidemic, and impact of
climate change.
The medium-term macroeconomic and fiscal projections were initially produced by The Macro
Fiscal Working Group comprising the Ministry of Finance, Bank of Sierra Leone, Statisti cs Sierra
Leone, National Revenue Authority and the National Minerals Agency produced a set of
macrofiscal projections using the Sierra Leone Integrated Macroeconomic Model (SLIMM) in early
May 2023. These projections were discussed with the IMF Country team during the combined
sixth and seventh reviews under the Extended Credit Facility (ECF) during May to June 2023. The
final projections agreed with the IMF for the period 2024-2028 are as follows: Table 1 below shows
the agreed projections:
Real GDP growth is projected to moderate to 2.7 percent in 2023 from 3.6 percent in 2022. The
economy is projected to recover strongly by 4.7 percent in 2024 and 5.2 percent on 2025 and
continue to grow by an average of 4.5 percent during 2026 to 2028. The agricultural subsector is
projected to grow by 4.8 percent in 2024 and 4.6 percent in 2025 and by an average of 4.8 percent
during 2026-2028. The Industry sector comprising mining, manufacturing and construction is
projected to grow by 5.5 percent in 2024 and 10.2 percent in 2025 and by an average 3.6 percent
during 2026-2028. The services sector comprising trade, travel, tourism, transport, banking and
telecommunications is projected to grow by 4.4 percent in 2024 and by an average 4.5 percent
during 2025-2028.
Table 1. Medium-Term Sectoral Growth Rates: 2023-2028

2023 2024 2025 2026 2027 2028
Real GDP 2.7 4.7 5.2 4.5 4.5 4.6
Agriculture, Forestry and Fishing 3.4 4.8 4.6 4.8 4.8 4.8
Industry 2.7 5.5 10.2 3.6 3.0 4.2
Mining and Quarrying 3.2 5.1 13.4 2.5 1.5 3.5
Manufacturing and Handicrafts 2.0 6.0 6.5 5.0 5.0 5.0
Electricity and Water Supply 2.0 5.1 5.2 5.2 5.2 5.2
Construction 2.0 6.0 6.0 5.0 5.0 5.0
Services 1.7 4.4 4.5 4.5 4.5 4.5
12
End of period Inflation (year-on-year) is projected to decline slightly to 36.4 percent in 2023 from
37.1 percent in 2021. Inflation is projected to continue to slow down from 27.1 percent in 2024
to a single digit of 9.8 percent in 2027 and 8.0 percent in 2028. Annual average inflation is also
projected to rise to 41.9 percent in 2023 from 27.2 percent in 2022 before declining gradually to
11.1 percent in 2027 and returning to single digit in 2028.
Exports of Goods are projected to drop by 7.9 percent in 2023 before recovering in 2024 by 3.4
and further by 10.1 percent in 2025. Exports are projected to grow by an average of 6.0 percent
during 2026 to 2028.
Imports of Goods are projected to decline by 12.6 percent in 2023 and stagnate in 2024 before
recovering by 2.0 percent in 2025. Imports of goods are projected to grow by an average of 5.2
percent during 2026-2028.
The current account deficit (including grants) is projected to narrow down from 9.2 percent of
GDP in 2022 to 7.3 percent of GDP in 2023 and continue to decline gradually reaching 2.3
percent of GDP in 2027 before edging up to 4.2 percent of GDP in 2028.
Gross Foreign Reserves of the Bank of Sierra Leone will average 3.3 months of import cover during
2023-2028.
The exchange rate of the Leone to the US Dollar is projected move by the difference in the
inflation rate in Sierra Leone and that of the country’s trading partners. The Leone is therefore
projected to slow down as inflation declines, exports increase and US monetary policy relaxes.
13
Table 2. Medium-Term Macroeconomic Forecasts: 2023-2028

2021 2022 2023 2024 2025 2026 2027 2028
Est Prelim Proj. Proj Proj. Proj Proj Proj
National Accounts and Prices growth
GDP at constant prices 4.1 3.6 2.7 4.7 5.2 4.5 4.5 4.6
GDP excluding iron ore 3.6 2.8 2.6 4.6 5.1 4.6 4.7 4.7
GDP excluding mining 2.9 3.2 2.6 4.7 4.7 4.7 4.7 4.7
GDP deflator 6.7 21.4 34.7 24.2 16.6 12.8 9.5 7.8
Inflation
Consumer price (end-of-period) 17.9 37.1 36.4 21.7 16.8 12.3 9.8 8.0
Consumer prices (average) 11.9 27.2 41.9 29.1 19.3 14.6 11.1 8.9
External sector
Export of goods 72.0 16.1 -7.8 3.3 10.1 5.3 7.3 5.3
Import of goods 33.5 7.1 -12.1 -0.5 2.0 3.8 5.7 6.0
Gross international reserves (excl. 5.5 4.0 3.4 3.2 3.0 3.0 3.1 3.2
swaps months of next
year's imports)
Current account balance
(including official grants) -8.7 -9.2 -7.0 -5.8 -3.1 -2.7 -2.3 -4.2
(excluding official grants) -11.6 -13.0 -10.6 -9.0 -6.2 -5.6 -5.0 -5.3
Financing and debt
Public debt 7.9 96.7 90.3 82.3 77.2 70.1 64.3 63.5
Domestic 28.7 31.3 23.3 22.0 21.2 20.0 18.5 17.8
External public debt (including 51.1 65.4 67.0 60.3 56.0 50.1 45.9 45.6
IMF)
Source: IMF and GOSL
Table 3: Medium-Term Macroeconomic Projections: 2024-2028

Indicator 2023 2024 2025 2026 2027 2028
Real GDP Growth 3.0 4.5 4.8 5.1 5.5 5.8
Inflation (e.o.p) 35.2 19.8 15.7 11.2 8.8 7.5
Inflation (Average) 35.7 28.2 20.1 13.2 11.2 8.8
Exports Growth 5.2 21.4 9.2 6.5 8.2 5.1
Imports Growth -8.7 2.5 3.0 3.8 5.5 6.2
Foreign Reserves (months of imports) 3.4 3.5 3.2 3.2 3.2 3.2
Current Account Balance (%of GDP) -7.0 -5.2 -3.0 -2.5 -2.3 -3.5
Domestic Revenue (% of GDP) 14.1 16.0 17.0 17.5 18.0 20.0
Grants (% of GDP) 5.4 5.8 4.8 4.0 3.5 3.5
Total Expenditure and Net lending (% of 25.2 24.5 24.0 23.5 23.3 22.0
GDP)
Overall balance, incl. grants (% of GDP) (5.7) (2.7) (2.2) (2.0) (1.8) (1.5)
Public Debt (% of GDP) 90.3 85.8 76.8 65.1 63.2 62.5
Domestic (%of GDP) 23.3 23.0 21.8 19.8 18.0 17.5
External (% of GDP) 67.0 62 .8 55.0 45.3 45.2 45.0
Source: GoSL Macro-Fiscal Working Group.
14
Figure 5: Chart Showing the Medium Term Macroeconomic Projections 2023-2028
Medium - Term Macroeconomic Projections
15.0 40.0
35.0
10.0
30.0
5.0
% 25.0
Pe
of
rce
GD 0.0 20.0
nt
2023 2024 2025 2026 2027 2028
P
15.0
-5.0
10.0
- 10.0
5.0
- 15.0 0.0
Yea rs
Rea l GDP Export Growth Import Growth Infl ation
15
Box 1. 1: Assumptions underpinning the Medium-term Macroeconomic Forecasts
Real GDP: The ramping up of iron ore mining, increase in agricultural output, expansion in construction
and manufacturing activities, recovery of the tourism sector and improvement in the business
environment will support the projected recovery of the economy in the medium-term.
Inflation: The projected slowdown in inflation is based on the current posture of fiscal consolidation,
which is expected to reduce the associated monetization of the budget deficit and slow down the rate
of the depreciation of the Leone. The expected increase in domestic food production as the
Government’s flagship programme of FEED SALONE takes hold combined with the anticipated and the
fall in global food and fuel prices.
Exports: the implementation of the expansion plans of the existing mining projects (Tonkolili and
Marampa iron ore mines and Sierra Rutile mine, diamond and gold mining, combined with the
expected increase in cash crop production (cocoa, coffee and palm oil) will support the growth in
exports.
Imports: the expected gradual decline in international food and fuel prices will contribute to the
decline in the import bill in 2023and 2024. The projected growth of the economy will drive the
moderate increase in imports over the medium-term.
Current Account Balance: the projected improvement in the trade balance as export increase,
combined with the expected increase in transfers will lead to the narrowing of the current account
deficit.
Gross foreign reserves: Disbursement of programme grants, balance of payments support by the IMF,
tax receipts and export proceeds will contribute to the projected level of foreign reserves
Exchange rate: The slowdown in the depreciation of the exchange rate of the Leone to the US Dollar
will be supported by the anticipated increase in exports increase and moderate growth in imports as
global food and fuel prices continues to fall. The relaxation of monetary policy stance in the US as
inflation continues to decline in the country is also expected to contribute to the expected slow-down
in the rate of depreciation of the Leone.
16
4. FISCAL POLICY AND STRATEGY

The key objective of fiscal policy in the medium-term is to achieve fiscal and debt sustainability.
After achieving fiscal sustainability in 2019 following the adoption of fiscal consolidation stance,
repeated adverse external shocks and policy slippages resulted in the widening of the budget
deficit from 2.9 percent of GDP in 2019 to 10.9 percent in 2022. Reflecting these developments
public debt increased sharply to 79.8 percent of GDP in 2021 and estimated at 98.9 percent of
GDP in 2022. Therefore, going forward in order to restore fiscal and debt sustainability,
Government will re-introduce the fiscal consolidation stance with a focus on enhancing domestic
revenue collection and expenditure rationalization to restore macroeconomic stability while
protecting priority social programmes. Government will undertake fiscal adjustment measures to
return the fiscal position to a sustainable path and reduce debt vulnerabilities. The next section
describes fiscal developments during 2018-2022 and the first half of 2023.
4.1 Fiscal Developments, 2018-2022 and First Half of 2023

Public finances improved following the adoption of fiscal consolidation strategy in 2018 focusing
on the intensification of domestic revenue collection supported by the issuance of Executive
Order 1 and expenditure rationalization measures as contained in Executive Order 2. Domestic
revenue improved to 13.8 percent of GDP in 2018 and further to 14.6 percent of GDP in 2019 after
stagnating at 12.3 percent of GDP in 2016 and 2017. Government expenditure was curtailed to 22
percent of GDP. As a result, the budget deficit, including grants, narrowed to 2.9 percent of GDP
in 2019from 8.8 percent of GDP in 2017.
However, the fiscal situation came under severe stress during 2020 to 2022 partly due to the
adverse impact of repeated shocks (COVID-19 pandemic and Ukraine Crisis) and on economic
activities and tax compliance but also due to policy slippages. Domestic revenue dropped to 13.8
percent of GDP in 2020 on account of the impact of COVID-19 restrictions on economic activities
and tax administration measures implemented to assist business in coping with the pandemic.
Expenditure rose sharply owing to the need to respond to the adverse impact of the pandemic to
save lives and protect livelihoods. Consequently, the budget deficit widened to 5.8 percent of GDP
in 2020. Despite the recovery of domestic revenues to 15.7 percent of GDP in 2021 as economic
activities recovered coupled with the one-off payment of iron ore royalties of
US$20.0 million by Marampa iron Ore Company, the budget deficit, including grants, widened to
7.4 percent of GDP in 2021 from 5.8 percent of GDP in 2020. This was mainly due to the sharp
increase in expenditures to 28.4 percent of GDP in 2021 as Government continued to respond to
the impact of the lingering COVID-19 pandemic. The economic uncertainty associated with
Ukraine crisis, which began in early 2022 adversely affected domestic revenue collection and
exacerbated pre-existing COVID-19 vulnerabilities including the surge in the international prices
of food and energy and depreciation of the Leone and their pass -through effect to domestic
prices. These developments combined with the loss of petroleum excise revenues due to delays
in adjusting domestic fuel pump prices, and ban of timber exports and related los of royalties led
to drop in domestic revenue to 13.0 percent of GDP in 2022. Government expenditure continued
to increase to 30.8 percent of GDP in 2022 due to unexpected security related expenditures and
higher-than budgeted spending on goods and services, energy subsidies and domestic capital
expenditures, reflecting the impact of higher domestic prices and depreciation of the Leone as
well as policy slippages. As a result, the overall budget deficit, including grants widened further
to 10.9 percent of GDP in 2022. Grants disbursed by our development partners declined to 4.6
17
percent of GDP in 2021 after reaching 5.1 percent of GDP in 2020. The deficit was financed largely
by borrowing from the domestic banking system estimated at 7.9 percent of GDP in 2022.
Government is taking corrective measures in 2023 and the medium-term to return the fiscal
situation to a sustainable path. Total domestic revenue collected during the first half of 2023
amounted to NLe4.7 billion (6.2 percent of GDP). Though exceeded the original target, the amount
collected fell short of the revised target (6.4 percent of GDP) agreed with the IMF during the
combined sixth and seventh reviews. The shortfall of NLe138 million was accounted for by the
less-than expected collections of income taxes, GST and import duties. This was due to technical
challenges in the implementation of the 2023 Finance Act.
Total grants received from our development partners during the first half of 2023 amounted to
NLe492.5 million compared to the expected amount of NLe1.19 billion, due to the slow
disbursement of project grants. There was no disbursement of budget support during the first half
of the year.
Figure 6: Chart showing trends in Domestic Revenue and Expenditures: 2017-2022
Domestic Revenue and Expenditure Trends

35
30
% 25
of 20
GD 15
P
10
5
0
2017 2018 2019 2020 2021 2022
years
Revenue Expenditure
Total expenditure and net lending for the first half of 2023 amounted to NLe8.8 billion (11.8
percent of GDP) and was within the budgeted amount of NLe9.7 billion (13.0 percent of GDP). Of
this total, recurrent expenditure amounted to NLe6.7 billion and capital expenditure and net
lending, NLe2.1 billion, about NLe799 million below the revised budgeted amount mainly due to
lower disbursements of project loans and grants by development partners during the first half of
the year. Domestic capital spending amounted to NLe1.3 billion, exceeding the allocated amount
by NLe105.6 million. The budget deficit for the period was estimated at NLe3.7 billion (4.9 percent
of GDP), broadly within the ceiling of 5.0 percent of GDP. The deficit was entirely financed by
domestic bank borrowing estimated at 2.6 percent of GDP. Government repaid the non-bank
sector during the review period. Reflecting this, total domestic debt increased to NLe18.2 billion
as at end June 2023.
18
Figure 7: Chart showing trends in Budget Deficit: 2017-2022
BUDGET DEFICIT
12
10
% 8
of
GD 6
P
4
0
2017 2018 2019 2020 2021 2022
YEARS
4.2 Progress in Achieving Fiscal Objectives During 2018-2022

The key fiscal objectives of Government as stated in section 1 are (i) to reduce the budget deficit
to less than or equal to 3.0 percent of GDP in the medium-term and (ii) keep the ratio of public
debt to GDP at not more than 70 percent of GDP consistent with the principles of responsible
public financial management and the convergence criteria under the ECOWAS Monetary
Cooperation Programme and the West African Monetary Zone, for the introduction of single
currency in the sub-region.
The multiple and overlapping shocks and policy slippages made it difficult for Government to the
meet its fiscal objectives during 2018-2022. Following the adoption of fiscal consolidation
measures in the last three quarters of 2018, the budget deficit, including grants narrowed to 3.1
percent of GDP in 2019 in line with Government’s fiscal objectives. In subsequent years, the
adverse impact of external shocks on both revenue and expenditure outcomes combined with
fiscal slippages made the achievement of the stated fiscal objectives elusive during the review
period.
The budget deficit widened to 5.8 percent of GDP in 2020 following the outbreak of COVID19 and
the negative impact of the associated restrictions on domestic output, revenue and expenditure.
In spite of the improvement of domestic revenue to 15.7 percent of GDP in 2021, the deficit rose
further to 7.4 percent of GDP, driven largely by higher-than budgeted expenditures amounting to
28.4 percent of GDP. The need to continue to mitigate the impact of the lingering COVID-19 on
the population necessitated the need for higher spending. The Ukraine crisis started in early 2022
and worsened the existing vulnerabilities of supply chain disruptions and higher global food, fuel
and fertilizer prices. The pass-through effects of these developments to domestic prices combined
with general global economy uncertainty and weakening of the Leone had a negative impact on
economic activities and by extension on domestic revenue collection. At the same time,
Government expenditure increased sharply to 30.0 percent of GDP reflecting the higher cost of
goods and services and infrastructure projects. Consequently, the budget deficit widened further
to 10.9 percent of GDP in 2022.
19
Public debt was within the stated target of 70 percent of GDP only in 2018. As the financing needs
of Government increased over the period as indicated by the widening budget deficit, public debt
increased gradually, reaching an estimated 98.9 percent of GDP in 2022 compared to the state
objective of 70 percent of GDP.
4.3 Medium-Term Fiscal Forecasts, 2024-2028

4.3.1 Domestic Revenue Projections
Government’s objective is to increase domestic revenue to 20 percent of GDP over the medium-
term. To this end, Government has prepared a Medium-term Revenue Strategy, with tax policy
and tax administration measures. The implementation of these measures combined with the
projected increase in economic activities and improvements in the efficiency in tax collection
through the use of technology is expected to improve tax revenue efforts over the medium-term.
Domestic Revenue: On the basis of the foregoing, domestic revenue is projected to increase from
SLe7.05 billion in 2022 (13.0 percent of GDP) to SLE10.5 billion (14.1 percent of GDP) in 2023.
Domestic revenue is projected to further improve in the medium term to SLE15.4 billion (15.5
percent of GDP) in 2024 and further NLe31.5 billion (17.5 percent of GDP in 2028.
Tax revenues are projected to increase to NLe8.95 billion (12.0 percent of GDP) in 2023 from
NLe5.9 billion (10.9 percent of GDP) in 2022. Tax revenues are forecast to increase from NLe13.3
billion (13.8 percent of GDP) in 2024 to NLe27.6 billion (15.4 percent of GDP).
Personal Income Tax (PIT) is projected to increase to NLe2.5 billion in 2023 from NLe1.8 billion in
2022. PIT will progressively increase to NLe3.3 billion in 2024 and further to NLe6.3 billion in 2028.
As a percentage of GDP, personal income tax is projected from 3.3 percent of GDP in 2023 to 3.4
percent in 2024 and further to 3.5 percent in 2028.
Corporate Income Tax (CIT) is projected to increase to NLe1.6 billion in 2023 from NLe1.1 billion
in 2022. CIT is projected to further to NLE2.2 billion (2.3 percent of GDP) in 2024 and progressively
to NLe4.4 billion (2.5 percent of GDP) in 2028.
Goods and Services Tax (GST) is projected to increase to NLe2.2 billion in 2023 from NLe1.3 billion
in 2022. GST is forecast to increase to NLe3.6 billion (3.7 percent of GDP) in 2024 and further to
NLe8.2 billion (4.7 percent of GDP) in 2028.
Excise taxes, comprising largely excise duty on petroleum products are projected to increase to
NLe651 million in 2023 from NLe373 million in 2022. Excise taxes are forecast to increase
progressively from NLe1.04 (1.1 percent of GDP) in 2024 to NLe2.3 billion (1.3 percent of GDP) in
2028
20
Import Duties are forecast to increase to NLe1.2 billion in 2023 from NLe850 million in 2022.
Import duties are projected to increase from NLe2.1 billion (2.2 percent of GDP) in 2024 to NLe4.3
billion (2.4 percent of GDP) in 2028.
Mining royalties and licenses are projected to increase to NLe699 million in 2023 from NLe415
million in 2022. They are projected to increase from NLe 882 million in 2024 to NLe1.6 billion in
2028 (averaging 1.0 percent of GDP over the period.
Other taxes, which are mainly fisheries royalties and licenses are projected to increase to NLe179
million in 2023 from NLe98 million in 2022. These taxes are projected to increase from NLe261
million in 2024 to NLe489 million, averaging 0.3 percent of GDP in the medium-term.
Non-tax revenue including revenues collected by Other MDAs, TSA agencies, Timber royalties,
Cargo tracking and Road User Charges are forecasted to increase NLe1.6 billion in 2023 from
NLe1.1 billion. Non-tax revenues will increase from NLe2.3 billion in 2024 to NLe3.8 billion in 2028,
averaging 2.1 percent of GDP over the period. Timber royalties are projected at nil in 2023 and to
remain nil over the period.
Grants
Grants are projected to increase to NLe4.03 billion in 2023 from NLe3.5 billion in 2022. Grants are
projected to increase from NLe5.7 billion in 2024 to NLe1.2 billion. As a percentage of GDP, grants
are forecasted to decline from 5.8 percent in 2024 to 3.7 percent of GDP in 2027 and further down
0.7 percent of GDP in 2028.
Table 4: Domestic Revenue Projections (millions NLe)

2022 2023 2024 2025 2026 2027 2028
Prel. Proj. Proj. Proj. Proj. Proj. Proj.

Total Revenue and Grants 10,792 14,589 21,036 25,788 29,569 33,676 32,696
Domestic Revenue 7,046 10,560 15,371 20,071 24,071 27,867 31,458
Tax revenue 5,921 8,951 13,344 17,551 21,118 24,494 27,654
Personal Income Tax 1,763 2,484 3,316 4,165 4,901 5,520 6,307
Corporate Income Tax 1,114 1,611 2,185 2,785 3,412 3,908 4,416
Goods and Service Tax 1,308 2,153 3,550 4,805 6,064 7,263 8,207
Excises 373 651 1,040 1,511 1,781 2,038 2,298
Import duties 850 1174 2,110 2,822 3,243 3,866 4,314
Mining royalties and licenses 415 699 882 1,162 1,355 1,474 1,623
Other taxes 98 179 261 299 361 424 489
Non-tax 1,125 1,609 2,028 2,520 2,953 3,374 3,805
o/w Timber Revenue 76 0 0 0 0 0 0
CCRT Debt Relief 218 0 0 0 0 0 0
Grants 3,528 4,029 5,665 5,717 5,497 5,809 1,238
21
Table 5: Domestic Revenue Projections (% of GDP)

2022 2023 2024 2025 2026 2027 2028
Prel. Proj. Proj. Proj. Proj. Proj. Proj.

Total Revenue and Grants 19.9 19.5 21.7 21.8 21.3 21.2 18.2
Domestic Revenue 13.0 14.1 15.9 17.0 17.3 17.5 17.5
Tax revenue 10.9 12.5 13.8 14.8 15.2 15.4 15.4
Personal Income Tax 3.3 3.3 3.4 3.5 3.5 3.5 3.5
Corporate Income Tax 2.1 2.2 2.3 2.4 2.5 2.5 2.5
Goods and Service Tax 2.4 2.9 3.7 4.1 4.4 4.6 4.6
Excises 0.7 0.9 1.1 1.3 1.3 1.3 1.3
Import duties 1.6 1.6 2.2 2.4 2.3 2.4 2.4
Mining royalties and 0.8 0.9 0.9 1.0 1.0 0.9 0.9
licenses
Other taxes 0.2 0.2 0.3 0.3 0.3 0.3 0.3
Non-tax 2.1 2.2 2.1 2.1 2.1 2.1 2.1
o/w Timber Revenue 0.1 0.0 0.0 0.0 0.0 0.0 0.0
CCRT Debt Relief 0.4 0.0 0.0 0.0 0.0 0.0 0.0
Grants 6.5 5.4 5.8 4.0 4.0 3.7 0.7
4.3.2 Local Council Revenue Projections (2024-2028)
Total Local revenue is projected to increase by 43 percent over the medium term – from Le190.22
million in 2024 to Le271.18 million in 2028. A significant increase of 50 percent is projected in
2024 to Le190.2 million from Le135.9 million in 2023 resulting mainly from the impact of current
and planned reforms in FY2023. Revenues collected by the city and local councils are projected to
increase by 15 percent in FY2025 from FY2024. Between 2026, 2027 and 2028 local revenue is
projected to increase by 10 percent, 8 percent and percent, respectively as shown below.
Table 6: Local Council Revenue Projections: FY2024-2028 (NLe)

2024 2025 2026 2027 2028
Proj. Proj. Proj. Proj. Proj.
Local Tax 3,859,189 4,410,502 4,851,552 5,239,676 5,501,660
Property Tax 82,993,368 94,849,564 104,334,520 112,681,282 118,315,346
Market Dues 17,662,227 20,185,402 22,203,942 23,980,258 25,179,270
Business 13,231,090 15,121,245 16,633,370 17,964,039 18,862,241
Registration
Licenses 16,592,176 18,962,487 20,858,736 22,527,435 23,653,806
Fees & Charges 38,514,642 44,016,733 48,418,406 52,291,879 54,906,473
Mining Revenues 10,599,431 12,113,635 13,324,999 14,390,998 15,110,548
Evacuation Fees 3,372,688 3,854,500 4,239,950 4,579,146 4,808,103
Other Non-Tax Revenue 3,396,856 3,882,121 4,270,333 4,611,960 4,842,558
Total Own Source 190,221,665 217,396,189 239,135,808 258,266,673 271,180,006

Revenue
22
Box 2: Assumptions Underlying Domestic Revenue Projections
Domestic Revenue: Domestic revenue projection for the medium-term is underpinned by the
projected expansion in economic activities, and the implementation of the tax policy and tax
administration measures articulated in the Medium-term Revenue Strategy. Tax administration will
be supported by the full roll-out of the digital platforms of the National Revenue Authority and the
use of technology such as NSOFT for the administration of GST on telecommunications, gaming and
betting and SICPA for the administration of excise tax stamps.
Corporate Income Tax (CIT): projection is based on the growth of nominal non-iron, nonagriculture
GDP. The introduction of the Minimum Alternate Tax (MAT) to tackle tax evasion and avoidance; the
broadening of the CIT base by reviewing and subsequent elimination of reduced corporate tax rates
and tax holidays for certain investments, and removal of investment allowances. Efficiency gains will
come from the full operationalization of all the modules of the ITAS and regular field audits.
Personal Income Tax (PIT): PAYE from the private sector is based on the growth rate of noniron ore
nominal GDP and the proposed harmonization of the various categories of capital incomes at 15-20
percent in the medium-term. PAYE from Government employees is forecasted by applying the
effective Government PAYE rate of the current year to the projected Government wage bill of the
subsequent year. Efficiency gains will come from the implementation of the strategy for taxing High
Net Worth Individuals.
Domestic GST: this is based on the projected growth rate of private consumption and the proposed
broadening of the GST base by streamlining the various GST exemptions as well as introduction of GST
in new areas such as insurance premiums. Efficiency gains are expected from strengthening
enforcement on the use of the ECR by businesses and the integration of the ECR with the systems of
large businesses as well as the introduction of NSOFT technology for the collection of GST on
telecommunications, gaming and betting.
Import GST: based on the effective tax rate for dutiable imports in 2022, which is applied on the
projected dutiable imports for 2024 and the medium-term. Efficiency gains will come from the
reduction in duty and tax exemptions following the implementation of the duty and tax waiver Act,
2022.
Import duties: projected amount is based on the effective import duty rate for dutiable imports in
2021 applied to the projected dutiable imports for the medium-term and maintain the import duty
rate of 5% on petroleum products. Efficiency gains will come from the implementation of the Duty and
Tax waiver policy
Petroleum Excise: based on the projected annual consumption of petroleum products, which in turn
depends on the projected growth in economic activities; and the petroleum excise duty rate in the
prevailing full-pass through petroleum pricing formula. Efficiency gains are expected from the
introduction of a fuel marking scheme
23
Other Excise duties: projected amount is based on the proposed conversion of ad-valorem excise rates
to specific excise rates and the harmonization of excise duty rate on imports and domestic
manufactured excisable goods such as cigarette, alcohol, wines and spirits. The implementation of
excise tax stamps is expected to bring in efficiency gains in the collection of excise tax on excisable
Mineral royalties and licenses: based on the projected exports value and the respective royalty rates
for the various minerals. The introduction of a Safe Habour Regulation is expected to enhance
efficiency in the collection of iron ore royalties.
Royalty on Fisheries (other taxes): based on the growth rate of the fisheries sector. Efficiency gains
from the fisheries surveillance activities
Timber royalty: based on the nominal GDP growth rate. Note: Timber exports banned since March
2022.
Parastatals Dividends: based on the expected profitability of the two state-owned banks and the
concessions fees for the Ports to paid by Bollore’.
Fees, Levies, and charges collected by MDAS: based on real GDP growth
Road User Charges: based on the consumption of dutiable petroleum products and the Road User
Charge in the petroleum pricing formula.
Local revenue projections are underpinned by the local revenue mobilization reforms outlined under
the section on local revenue mobilization strategy.
4.3.3 Government Expenditure Projections

In nominal terms, total expenditure and net lending is projected to increase from an estimated
amount of NLe18.8 billion in 2023 to NLe23.8 billion in 2024. Total expenditure is projected to
further increase to NLe28.6 billion in 2025, NLe32.9 billion in 2026, NLe37 billion in 2027 and
NLe40.5 billion in 2028. As a percentage of GDP, total expenditure and net lending is projected
to decrease from 30.8 percent of GDP in 2022 to an estimated 25.2 percent of GDP in 2023 and
24.5 percent of GDP in 2024. Public expenditure will decline further to 23.2 percent of GDP in
2027 and 22.5 percent of GDP in 2028 consistent with the fiscal consolidation policy being adopted
by the Government.
Of the total expenditure, recurrent expenditure is projected to increase in nominal terms from
NLe11.1 billion in 2022 to an estimated NLe13.5 billion in 2023. Nominal Recurrent expenditure
will increase further NLe17.2 billion in 2024 and continue to increase to NLe26.0 billion in 2027
and NLe28.6 billion in 2028. As a percentage of GDP, recurrent expenditure is projected to decline
from 20.4 percent in 2022 to an estimated 18.1 percent in 2023 and 17.7 percent in 2024. The
declining trend will continue in 2027 with recurrent expenditure falling to 16.4 percent of GDP
and 15.9 percent in 2028.
24
Wages and salaries are projected to increase in nominal terms from 4.3 billion in 2022 to 5.3 billion
in 2023 and 7.0 billion in 2024. The wage bill will increase further to 11.4 billion in 2027 and 12.8
billion in 2028. As a percentage to GDP, wages and salaries are projected to drop from 8.0 percent
of GDP in 2022 to 7.0 percent of GDP in 2023 before increasing to 7.2 percent of GDP in 2024. The
wage bill will average 7.2 percent of GDP during 2025-2027 before dropping slightly to 7.1 percent
of GDP in 2028.
Expenditure on goods and services is projected to decreas e from 2.4 billion in 2022 to 2.2 billion
in 2023 before increasing to 3.0 billion in 2024 in nominal terms. Nominal spending on goods and
services will continue to increase to NLe3.8 billion in 2025, NLe5.1 in 2027 and NLe5.7 billion in
2028. As a percentage of GDP, goods and services expenditure is projected to decrease from 4.5
percent of GDP in 2022 to 3.0 percent of GDP in 2023 before increasing to 3.1 percent of GDP in
2024. Goods and services expenditure will average 3.2 percent of GDP during 2025 to 2028.
Subsidies and Transfers are projected to increase in nominal terms from 2.4 billion in 2022 to an
estimated 2.9 billion in 2023 and 3.1 billion in 2024. This expenditure category will increase further
to 3.8 billion in 2025 and 5.1 billion in 2027 and 5.7 billion in 2028. As a ratio to GDP, Subsidies
and Transfers are projected to decline to 3.8 percent in 2023 from 4.5 percent in 2022 and will
increase to an average of 3.2 percent of GDP during 2024-2028.
Interest payments are projected are projected to increase from 1.8 billion to an estimated 3.1
billion in 2023 and 4.0 billion in 2024. Interest payments are projected to further increase to 4.4
billion in 2025 and 4.9 billion in 2026 before declining to 4.5 billion in 2027 and 4.4 billion in 2028.
Of this, domestic interest payments are projected to increase from 1.6 billion in 2022 to 2.8
billion and 3.6 billion in 2024. Domestic interest payments will increase further to NLe3.8 billion
in 2025 and NLe4.3 in 2026 before decreasing to NLe3.8 billion in 2027 and NLe3.6 billion in 2028.
As a percentage of GDP, domestic interest payments are projected to increase from 3.0 percent
in 2022 to 3.9 percent in 2023 before declining to 3.7 percent in 2024. Domestic interest payments
will average 3.2 percent during 2025 and 2026 and decline to an average of 2.2 percent during
2027 and 2028. Foreign interest payments are projected to increase from NLe199 million in 2022
to NLe250 in 2023 and further to NLe402 in 2024. Foreign interest payments will continue to
increase, reaching NLe679 million in 2027 and NLe771 million in 2028. Relative to GDP, foreign
interest payments will decline from 0.4 percent of GDP to 0.3 percent of GDP in 2023 and 0.4
percent of GDP in 2024. Foreign interest payments will average 0.5 percent of GDP in 2025 and
2026 before declining to an average of 0.4 percent of GDP in 2026 and 2027.
Capital expenditure and net lending is estimated at 5.0 billion in 2023, the same as in 2022. Capital
expenditures are projected to increase to 6.4 billion in 2024 and further to 10.7 billion in 2027 and
11.6 billion in 2028. Foreign funded capital expenditure is estimated to increase from 2.2 billion
in 2022 to 3.0 billion in 2023 and is projected to increase to 4.2 billion in 2024 and further to 7.1
billion in 2027 and 7.9 billion in 2028. Domestic capital expenditures are estimated to decline from
2.9 billion in 2022 to 2.1 billion in 2023 and are projected to increase to 2.3 billion in 2024 and
further to 3.6 billion in 2027 and 3.7 billion in 2028.
As a percentage of GDP capital expenditure is estimated to decline from 9.3 percent in 2022 to
6.8 percent in 2023. Capital expenditures are projected to average 6.6 percent during 2024 to
2028. Foreign funded capital expenditure will average 4.3 percent during 2024-2028. Domestic
25
capital spending will 2.2 percent of GDP over the same period compared to 5.3 percent in 2022
and the estimated 2.8 percent in 2023.
The overall budget deficit, including grants is projected to narrow to 2.8 percent of GDP in 2024
from 10.9 percent in 2022 and an estimated 5.6 percent in 2023. The deficit will decline further
to an average of 2.4 percent of GDP in 2025 and 2026 and decline to 2.1 percent of GDP, before
edging upwards again to 4.3 percent of GDP in 2028 reflecting the projected drop in grants in 2028
to 0.7 percent of GDP in 2028 from 3.7 percent of GDP in 2027.
Total public debt is projected to decline to 84.3 percent of GDP in 2024 from the estimated 98.9
percent of GDP in 2022 and the estimated 92.2 percent of GDP in 2023. Total public debt is
projected to decline further to 67.3 percent of GDP in 2027 and 66.6 percent of GDP in 2028. Of
the total debt, domestic debt is projected to decline to 24 percent of GDP in 2024 from 28.7
percent of GDP in 2022 and the estimated 31.3 percent in 2023. External debt is projected to
decline to 60.3 percent of GDP in 2024 and further to an average of 45.7 percent of GDP in 2027
Table 7: Government Expenditure Projections (Million NLe)
2022 2023 2024 2025 2026 2027 2028

Expenditure and net 16,722 18,811 23,772 28,639 32,892 36,970 40,480
lending
Current expenditures 11,064 13,504 17,174 20,489 23,768 26,040 28,629
Wages and Salaries 2/ 4,346 5,261 7,009 8,514 9,945 11,386 12,807
Goods and Services 2,446 2,239 3,022 3,786 4,459 5,106 5,743
Subsidies and transfers 2,442 2,876 3,146 3,806 4,423 5,067 5,722
o/w elections 358 395 0 0 0 0 0
o/w Transfer to 746 1,112 1,345 1,515 1,695 1,913 2,152
energy IPPs
Interest 1,830 3,128 3,997 4,383 4,941 4,482 4,358
Domestic 1,632 2,877 3,593 3,834 4,301 3,801 3,585
Foreign 199 250 404 550 641 681 773
Capital Expenditure 5,062 5,052 6,428 7,890 8,865 10,680 11,601
Foreign financed 2,180 2,986 4,165 5,083 5,892 7,095 7,916
Domestic financed 2,883 2,066 2,263 2,806 2,973 3,586 3,685
o/w school feeding program 129 289 484 650 903 1193 1,348
Net lending 0 0 0 0 0 0 0
Contingent expenditure 46 68 0 0 0 0 0
Arrears pay down (cash) 549 186 170 260 259 250 250
26
Table 8: Government Expenditure Projections (% of GDP)

2022 2023 2024 2025 2026 2027 2028
Expenditure and net lending 30.8 25.2 24.5 24.2 23.7 23.2 22.5
Current expenditures 20.4 18.1 17.7 17.3 17.1 16.4 15.9

Wages and Salaries 2/ 8.0 7.0 7.2 7.2 7.2 7.2 7.1
Goods and Services 4.5 3.0 3.1 3.2 3.2 3.2 3.2
Subsidies and transfers 4.5 3.8 3.2 3.2 3.2 3.2 3.2
o/w elections 0.7 0.5 0.0 0.0 0.0 0.0 0.0
o/w Transfer to energy IPPs 1.4 1.5 1.4 1.3 1.2 1.2 1.2
Interest 3.4 4.2 4.1 3.7 3.6 2.8 2.4
Domestic 3.0 3.9 3.7 3.2 3.1 2.4 2.0
Foreign 0.4 0.3 0.4 0.5 0.5 0.4 0.4
Capital Expenditure 9.3 6.8 6.6 6.7 6.4 6.7 6.5
Foreign financed 4.0 4.0 4.3 4.3 4.2 4.5 4.4
Domestic financed 5.3 2.8 2.3 2.4 2.1 2.3 2.0
o/w school feeding 0.2 0.4 0.5 0.6 0.7 0.8 0.8
program
Net lending 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Contingent expenditure 0.1 0.1 0.0 0.0 0.0 0.0 0.0
Arrears paydown (cash) 1.0 0.2 0.2 0.2 0.2 0.2 0.1
Figure 8: Chart showing the Medium Term Fiscal Projections: 2024-2028
Fiscal Projections 2024-2028

35.0
30.0
25.0
20.0
% 15.0
of
GD 10.0
P 5.0
0.0
2021 Act. 2022 Act. 2023 Pro j. 2024 Pro j. 2025 Pro j. 2026 Pro j. 2027 Pro j. 2028 Pro j.
-5.0
-10.0
-15.0
Years
Revenue (excluding grants)4/ Tota l expenditure a nd net l ending Overa l l balance
27
4.4. Policy Measures for Achieving the Medium-Term Fiscal Objectives

4.4.1 Measures for Achieving the Fiscal Deficit Target
To progressively reduce the budget deficit from 10.9 percent of GDP in 2022 and achieve the fiscal
deficit target of an average of 2.8 percent in 2027 and 2028, Government will implement a mix of
revenue enhancement and expenditure containment measures, while seeking additional grants
from development partners to support the implementation of programmes and projects in the
priority sectors including, among others, agriculture and food security, human development and
infrastructure.
Medium-Term Revenue Mobilisation Measures

To boost revenue collection in the Medium-term and achieve the target of 20 percent of GDP in
revenues, Government with support from the IMF and World Bank has developed the MTRS,
2023-2027, that was approved by Cabinet in April 2023. The MTRS lays out policy and
administrative tax measures, which will be implemented by Government to improve domestic
revenue collection over the short and medium-term.
The MTRS tax policy measures include, among others:
(i) Review of the personal income taxation with a view to harmonizing withholding taxes on
various forms of capital income and gradually transition to a comprehensive global income
taxation in medium to long term;
(ii) Review of the corporate income taxation system, with a view to broadening its base
abolishing tax holidays and reduced tax rates for certain investments as well as
incentivizing productive investments; and introduce a Minimum Alternate Tax (MAT) to
tackle tax evasion and tax avoidance
(iii) Reform the excise tax with a view to transition excise taxes on fuels, alcohol, tobacco,
vehicles, sugar-sweetened beverages, plastics and others to specific from Ad-Valorem
rates designed to internalize external costs, thereby reducing harmful behaviour a nd
providing a stable source of revenues.
(iv) Commence the implementation of excise stamps to improve the effectiveness of taxation
of excisable goods including alcohol, tobacco, vehicles, sugar-sweetened beverages,
plastics and others to provide accurate statistics for tax purposes, reduce illicit trade and
enhance consumer protection;
(v) Adopt the full pass-through formula for petroleum pricing
(vi) Broaden the base of the Goods and Services Tax, by streamlining exemptions currently
provided on machinery and equipment while maintaining exemptions on basic food items
such as rice; and extending GST to the informal sector by revising upwards the threshold
for registration as well as reforming the Refund Mechanism;
28
(vii) Explore the possibility of Integrating the management of land and property taxes at the
national or central level and allow the National Revenue Authority to take on a greater
role in assisting local government on these revenue matters for a fee or commission;
(viii) Institutionalize a policy of not negotiating fiscal issues in all new greenfield investments in
the extractive sector, taking a disciplined policy to avoid individual contracts containing
special and overgenerous fiscal terms that are stabilized over time outside of the general
tax law; and
(ix) The MTRS also introduces a vehicle circulation tax and a tourism levy
The MTRS also includes tax administration measures aimed at improving taxpayer registration,
strengthening tax compliance, improving auditing, compliance risk and debt ma nagement as well
as improving customs valuation.
For domestic taxes, the measures include:

(i) Improving compliance enforcement to improve tax compliance with core tax payer
obligations and address specific high-risk tax payer segment including high networth
individuals to tackle tax evasion and tax avoidance and international tax risks. The
process also involves continuous registering of tax payers, improving debt
management and audit capacity and increase engagement with tax payers;
(ii) Enhance the full functionality and integration of automated tax administration systems
(ASYCUDA, ITAS and ECR)
(iii) Improve access to and management of tax data to support compliance risk
management.
For Customs administration,

(i) Improve compliance by strengthening border controls, enhance border patrols and
surveillance and the implementation of the Revised Kyoto Convention and HS
classification of Rules of Origin;
(ii) Fully operationalise and roll-out ASYCUDA
(iii) Simplify current set of customs procedures and processes;
(iv) Strengthen customs valuation;
(v) Strengthen post-clearance audit;
(vi) Improve management of Customs duty exemptions;
(vii) Strengthen customs data acquisition and management
For Non-Tax Revenues,

(i) Digitize the payment of non-tax revenues including fees, charges, levies and fines and
integrate with ITAS.
Overall, cross-cutting issues that need attention to improve domestic revenue collection include:
(i) Strengthening tax compliance and risk management;
(ii) Simplifying processes in revenue administration including developing an outcome
based Monitoring and Evaluation Framework; and
29
(iii) Modernising business operations, enhance capacity and productivity through

investment in technology and infrastructure, continuous training and improve data
management.
To support the implementation of the MTRS, Government has established a high-level Steering
Committee on the MTRS, which will meet quarterly, and be led by the Ministry of Finance with
representation from the NRA, development partners, civil society, private sector, and other
relevant government departments and agencies.
In addition, Government will explore the possibility of leveraging climate finance from Sierra
Leone’s forests, including carbon credits, REDD+ payments, and grants for forest conservation or
reforestation. In this context, Government will leverage international public finance including
transition and adaptation financing for climate change and plan to request access under the IMF’s
Resilience and Sustainability Trust (RST) facility in the future. Government will also consider
levying carbon taxes on certain sectors of the economy and will explore issuing green bonds in the
medium term.
Domestic Revenue Mobilization at the Local level

Government is committed to strengthening decentralized delivery of public services through
reforms that will expand the fiscal space of local councils to respond to the local development
needs of their communities. Local councils will be supported to maximise the collection of
internally generated revenues in an efficient and effective manner. This will be done through
reforms that will strengthen tax administration and tax paying culture in order to meet the
demands for effective devolution of service delivery.
In that regard government in the medium term will implement the following reforms to boost
local revenue mobilization:
 Develop and implement a new fiscal decentralization policy and strategy that will provide
additional window in the form of enhanced tax bases or new revenue streams for local
councils to boost local tax revenues.
 Develop a modernised Property Tax System to reflect current valuation, property roll and
increased tax base.
 Support the functioning of district revenue mobilisation committees. The committee is
made up of local stakeholders including non-state actors. The primary objective of the
committee is to discuss and follow up on challenges with local revenue mobilization as
well as monitoring effective implementation of MOUs on tax collection and sharing
between local and chiefdom councils.
 Organise inter - district revenue mobilisation committees dialogue fora to discuss
progress, challenges and reforms required on local revenue mobilisation and management
within their jurisdictions as well as share experiences.
 Prepare and roll out local councils’ specific revenue mobilisation strategies. The strategy
will provide a step by step action on how to mobilize internally generated revenues
assigned for collection by local council.
30
Medium-Term Expenditure Management and Control Measures

Government remains committed to strengthening public expenditure management to create the
fiscal space for spending on priority areas while avoiding the buildup of arrears and enhancing the
credibility of the budget. To this end, Government will sustain efforts to improve the integrity and
sustainability of the payroll, continue with efforts to improve budget planning and execution,
strengthen cash management, and improve the efficiency of the public investment programme.
Improving the Sustainability of the Wage Bill

Wages and salaries averaged 8.5 percent of GDP during 2021 and 2022 and is projected to decline
slightly to 8 percent of GDP in 2023. Current projections indicate that the wage bill will stabilize
around 7.2 percent of GDP in the medium-term. Government’s objective is to stabilize the wage
bill at 6.0 percent of GDP in the medium-term.
The transparency and reliability of the Government wage bill has improved in recent years
following the implementation of several payroll reforms initiated in 2018. These include:
reconciliation of the inconsistencies between the employee dates of birth in the payroll database
and NASSIT numbers; ensuring new employees brought into the payroll have valid National
Identification Numbers (NIN), NASSIT Numbers and BBAN; timely removal from the payroll of
public servants who have reached the retirement age of 60 years; and biometric verification of
civil servants and pensioners.
While the implementation of these reforms has contributed to significantly improving the
transparency and reliability of the Government wage bill, going forward, its sustainability remains
a key challenge. To this end, Government with support from the Fiscal affairs Department of the
IMF, undertook a diagnostic study of the Government wage bill. The study identified several
factors driving the increase in the wage bill and other challenges affecting the integrity of the
wage including wage disparities. The study also made some recommendations, which will form
part of the reforms to be implemented in the medium-term. The key objective in the medium-
term is to achieve a Government wage bill that is affordable and sustainable.
Building on the ongoing reforms, Government will undertake the following reforms:
(i) Develop and implement a Medium-term Wage Bill Management Strategy that introduces
additional reforms to strengthen payroll management. Government has established a
Technical Working Group comprising relevant stakeholders working on the Government
payroll. The team has developed a work plan and the preparation of the Strategy is
expected to complete by October 2023. Implementation of the strategy will commence in
2024. The Strategy will address some of the findings of the Wage Bill Study carried out by
the Ministry of Finance with support from the IMF Fiscal Affairs Division.
(ii) Operationalise the Wages and Compensation Commission following the enactment of
Wages and Compensation Commission Act in April 2023. The aim is to have a central body
that will address the distortions and wage disparities in the pay roll, among others;
(iii) Conduct a biometric verification exercise for teachers and health workers; and
31
(iv) Institute workforce planning for all payroll categories to improve the controls relating to
new recruitments and salary adjustments. MDAs should include all projected
recruitments, promotions and headcounts with the annual allocation to avoid unbudgeted
spending on salaries during the years. The Ministry of Finance will engage
with all employing authorities to determine staff quotas after considering current
workforce, creation of new vacancies, promotions, retirements and planned new
recruitments
(v) Implement the recommendations from the internal audit reports on the payroll
(vi) Return the management of the wage bill of the Universities to the University authorities.
Improving Budget Planning and Execution

With support from the IMF, Government has adopted the strategic top-down budgeting approach.
Currently, the Ministry of Finance issues out a budget call circular, requesting MDAs to submit
budget proposals for the following year. The Circular contains, inter alia, budget ceilings for each
MDA derived from the projected total level of expenditures as per the medium-term
macroeconomic framework agreed with the IMF. Government will seek technical assistance from
the IMF on baseline budgeting to avoid under/over budgeting by MDAs and ensure that the
expenditures reflect the priorities of Government.
To improve budget implementation in the medium-term, the Ministry of Finance transitioned has
in FY2022 moved to the 2014 Government Finance Statistics (GFS) from the 1986 (GFS) in order
to ensure effective public sector financial reporting in line with International Standards. This
resulted in the upgrading of the Chart of Accounts from 27 digits to 33 digits, in line with the
Medium-term National Development Plan.
Improving Expenditure controls and Cash Management

The upgrade of the IFMIS from v 6.5 to a web-based version 7.0 was completed in FY2022 and
currently being used by a total number of 74 MDAs for the planning, preparation and execution
of the annual budgets. The platform provides fiscal control over fund allocations, expenditures,
appropriations, procurement, revenue administration, human resources management and
payroll. The system is expected to minimize expenditure overruns and strengthen MDAs judicious
use of resources.
The upgraded web-based version will be rolled out to the other remaining MDAs that are currently
not using the IFMIS, including Local Councils, Embassies/ High Commissions and donor-funded
projects. This will facilitate comprehensive recording, accounting and reporting of Government
Financial transactions The Ministry of Finance will make it mandatory for MDAs to process all
expenditures through the IFMIS.
The Electronic Funds Transfer (EFT) was introduced in FY2022, which involves sending payments
instructions electronically from the IFMIS to the Bank of Sierra Leone T24 Core Banking
Application, for onward transmission into the bank accounts of beneficiaries. The Accountant-
General will fully implement the Electronic Funds Transfer system (EFT) to cover all expenditure
categories including wages and salaries.
32
The EFT ensures that payment requests are sent to the Bank of Sierra Leone only when funds are
available, thus eradicating the build-up of unpaid cheques with the Bank of Sierra Leone Going
forward, Government will continue to rollout the EFT to other MDA’s mainly Subvented Agencies
(SVA’s) and self-accounting institutions to enable them make direct payments to their suppliers by
sending payment instructions via the EFT platform to the Bank of Sierra Leone where their accounts
are held.
To ensure efficient cash management, the Government will continue implementing Phase II of the
TSA in 2023. This will further broaden the scope of the TSA to include all sub vented and
semiautonomous agencies. The Accountant-General’s Department has transferred the balances
of Subvented Agencies in commercial banks to the Bank of Sierra Leone, with the exception on
balances related to donor-funded projects. The Accountant-General will convert all departmental
accounts held at the Bank of Sierra Leone into treasury accounts. This will provide a
comprehensive framework for the calculation for computation of ways and means daily. In
addition to improving the management of cash balances of Government, this reform will reduce
the amount of interest paid by Government on outstanding ways and means balances.
The Cash Management Unit will continue to use the Cash Forecasting Tool to produce and update
cash forecasts to inform the decisions and recommendations of the Expanded Cash and Debt
Management Committee (ECDMC) on budget execution. The Committee will increase the
duration of cash flow forecasts to at least three months and incorporate arrears repayment plans
into cash planning. Quarterly budget allocations will be based on the cash flow forecasts discussed
and approved by the ECDMC. Furthermore, the issuance of allocations to MDAs will now be done
on the basis of contractual and no contractual expenditure categories, thereby improving on
realistic and timely release of funds. Government will update and publish the Arrears Clearance
Strategy and incorporate all outstanding domestic arrears as of end June 2023 including unpaid
checks into a newly published arrears clearance strategy after verification by the Audit Service
Sierra Leone with view to fully budgeting for their clearance starting with the 2024 budget. This
will help Government to strengthen debt and cash management and prevent the accumulation of
arrears and expenditure overruns. To increase transparency and improve budget execution, the
Government is also committed to deploy an arrears profiling system to track arrears payments
across MDAs.
Follow-up on Audit Recommendations

In an effort to address the numerous issues in the annual audit report as audit recommendations,
the Ministry of Finance has developed and will operationalize the Standard Operating Procedures
(SOPs) for the follow-up on audit recommendations provided by the Auditor General and will also
established and strengthen the capacity of Audit Committees in all MDAs.
Strengthening Public Investment Management

Government’s objective is to ensure that the preparation and execution of the public
investment programme is enhanced in order to ensure that selected projects are not only
33
consistent with the National Development Plan and the BIG FIVE Agenda but also technically
feasible, as well as financially and economically viable.
To strengthen implementation of capital expenditure, the Ministry of Planning and Economic

Development (MoPED) will issue policy guidelines and frameworks on the management of the
Public Investment Programme (PIP) spelling out clear roles and responsibilities of key institutions
in relation to project identification, design, appraisal, implementation, monitoring and evaluation.
The Cabinet approved National Public Investment Management Policy is the guiding instrument
for the management of the Public Investment Programme
In order to ensure quality and efficiency of our capital expenditure management, Government is
committed to implementing the provisions of the National Public Investment Management policy
approved in 2021. The development of the Pre-Investment Manual in March 2022 and the project
appraisal guide have provided the framework for rolling out the policy.
Government will activate the governance architecture of the Public Investment Management
systems and rationalize the Public Investment Programme across Minis tries Departments and
Agencies (MDAs) and Local Councils to focus on Government priorities as encapsulated in the Big
Five Game Changers.
Going forward, development expenditure projection for projects and programmes will be based
on the following:
• projects and programmes alignment to the aspirations of the Medium-Term National

Development Plan and Government’s Big Five Game Changers with emphasis on
agriculture, human capital development, youth employment, revamping the public
service, technology and infrastructure;
• rationalize ongoing projects and programmes in tandem with Government broad policy
objectives and the availability of funds; priority will be given to the completion of ongoing
projects;
• project and programmes that are critical to the statutory functioning of the MDAs and LCs
as contained in the Statutory Mandate;
4.4.2 Measures for Achieving the Public Debt Target
The stock of disbursed outstanding public debt including verified domestic supplier arrears
amounted to NLe51.70 billion (USD2.75 billion) at end-December 2022, of which external and
domestic debt accounted for NLe35.64 billion (USD1.9 billion) and NLe16.06 billion respectively. The
public debt stock increased by 49.3 percent relative to its end-December 2021 position. The growth
was as a result of sharp depreciation of the local currency in 2022 and new domestic borrowing to
implement the national budget. As at end-December 2022 public debt stood at 92.2 percent of GDP
and is projected to average 82.38 percent of GDP in 2024-2027 under the baseline public debt and
macroeconomic assumptions.
34
To improve on the public debt situation, Government has updated the Medium-Term Debt
Strategy (MTDS) 2023-2027 which would be approved by Cabinet and published in October 2023.
The MTDS 2023-2027 calibrated four strategies:
Strategy 1: (Baseline)—assumes that government will follow the agreed borrowing limits
with the IMF under the Extended Credit Facility programme. This includes prioritizing and
maximizing external concessional borrowing as possible, keeping borrowing from
multilateral and bilateral as in past trends;
Strategy 2: (Inception of Market Development) which assumes domestic and external

borrowing in the same proportion as in the baseline, but over time issuing 2-5-year
treasury bonds to the market while proportionately reducing treasury bills in line with
development of the domestic debt market;
Strategy 3: (External Financing and Market Development) assumes a decline in domestic

borrowing compared to strategies 1 and 2, but maturities of domestic instruments are
similar to Strategy 2. The decline in domestic borrowing in Strategy 3 is assumed by
enhanced domestic revenue mobilization and prioritization of expenditures toward
achieving the Big Five Development Agenda of Government. The rationale of this strategy
is to increase the Average Time to Maturity (ATM) of domestic debt and reduce interest
rate costs as well as rollover risk; and
Strategy 4: (Introduction of Special Purpose Vehicle linked mainly to mining revenue

which leverage on rapid new external private sector/PPP financing of highly productive
projects in the economic sector to achieve the Big Five priorities. Financing through
Special Purpose Vehicle would come mainly in 2024 to be backed by solid structural
measures that supports the creation of institutions that would support transformative
infrastructure projects that are self-financing and growth drivers. The idea is to reduce
the size of Government fiscal deficit and external debt service payments in the medium
to long-run whilst at the same time supporting the expansion of the private sector in the
domestic economy.
Implementation of the last MTDS 2021-2025 faced repeated external shocks especially the
prolonged Russian-Ukraine challenges, which resulted in decline in domestic revenue, making it
difficult to implement Strategy 3. The updated MTDS 2023-2027 recommends Strategy 4 because
of its feasibility to implement and potential to significantly reduce the cost and risk of the existing
debt portfolio. The implementation of Strategy 4 will also reduce the debt service burden on
Government because the transformative projects to be financed would be modelled to repay the
debt service from their project cash flows. This would also create the opportunity for Government
to utilize the fiscal space to be created by the reduced external debt service going forward to drive
additional policies on improving the medium-term domestic debt to reduce the refinancing risks.
In addition, the proposed Strategy 4 is consistent with the recent international financing
challenges that comes with the combined effects of the Russian-Ukraine war and CoVID-19
recovery challenges.
To achieve debt sustainability objectives, Cabinet also endorsed the recommendations of the Debt
Sustainability Analysis (DSA). The DSA was updated in 2022 and annual DSAs would be conducted
35
to track the impact of new financing, fiscal and macroeconomic developments on the medium-to-
long term debt sustainability. Based on the results of the DSAs, Government will continue to:
(a) Prioritise mobilization of grants over loans and ensuring that new borrowing meets the
concessionality threshold of a minimum of 35 percent grant element;
(b) Pursue diversification of the export base to avoid over-reliance on mineral earnings given
its vulnerabilities;
(c) Step up domestic revenue mobilization through the implementation of the MTRS the
current collection efforts is below potential relative to regional average;
(e) Adopt measures to prudently manage public expenditures in order to reduce the budget
deficit and the need for increased domestic borrowing;
(f) Take action to lengthen the maturity of the existing debt instruments.
36
5.0 MEDIUM-TERMFSS EXPENDITURE FRAMEWORK (MTEF)
5.1 Medium-Term Expenditure Priorities and Ceilings, 2024-2028

The priorities of Government or the next five years (THE BIG FIVE) are articulated in the Peoples’
Manifesto and include Agriculture and Food Security (FEED SALONE) as the topmost priority.
Government will continue to give priority to Human Capital Development, followed by
Infrastructure and Technology. The Government also prioritises initiatives that will create 500,000
jobs over the next five years and revamping public administration.
The allocation of recurrent and domestic capital expenditures reflects these priorities. These
allocations are shown in the Medium-term Expenditure Framework (MTEF) ceilings for nonsalary,
non-interest recurrent expenditures and the Public Investment Programme (PIP) for domestic
funded capital expenditure (Annexes 1 and 2).
5.2 Non-Salary, Non-Interest Recurrent Expenditures Ceilings/Allocations

The share of Agriculture and Food Security (FEED SALONE) in the non-salary, non-interest
recurrent expenditure increased from 2.6 percent in 2023 to 4.1 percent in 2024 and 4.2 percent
in 2025. The share of agriculture and food security increase further to an average of 4.3 percent
during 2026-2028. Human capital development will increase from 10.3 percent of non-salary, non-
interest recurrent expenditure in 2023 to 10.8 percent in 2024 and average 10.9 percent during
2025-2028. Of this Education will account for 4.6 percent in 2024 and average 4.7 percent during
2025-2028. The share of Health will increase from 4.4 percent in 2023 to 4.8 percent in 2024 and
2025 and increase further to 4.9 percent during 2026-2028. The share of Infrastructure and
technology will increase from 27.9 percent in 2023 to 28.4 percent in 2024 before declining to an
average of 27.4 percent during 2025-2028.
5.3 Domestic Capital Budget Allocations/Ceilings
The budgetary allocations under the Public Investment Programme (PIP) for the period 2022028
reflects the priority Government attaches to the BIG FIVE agenda as articulated in the People’s
Manifesto. The indicative allocations in the PIP showed that the share of Agriculture and food
security including fisheries in the domestic capital budget increased significantly to 39 percent of
the domestic capital expenditure over the medium-term (2024-2028) from 4.0 percent in 2023, in
line with the priority accorded to the sector. Human Capital Development accounts for 33 percent
of the domestic capital budget in the medium-term from 31 percent in 2023, with the share of
the Free Quality School Education Programme averaging 23.0 percent over the period. The share
of Infrastructure and Technology dropped from 58 percent in 2023 to 20 percent over the MTEF
period. (See Annex 2)
37
Figure9: Chart showing Non-Salary Non-Interest Recurrent Expenditure for Government’s BIG
FIVE Priorities
BIGE FIVE Priorities

% of Non-Salary, Non-Interest Recurrent Expenditure
1.5
4.1
10.8
52 28.4
3.2
Agriculture and Food Security Human Capital Development

Infrastructure and T echnology Youth Employment Initiatives
Revamping the Public Sector Others (women, children, climate change
Figure 10: Chart showing the proportion of Domestic Capital Expenditure for Government’s BIG
FIVE Priorities
BIG FIVE Priorities

% of Domestic Capital Expenditure
1
3 4
20 39
33
Agriculture and Food Security Human Capital Development Infrastructure and Technology
Youth Employment Initiatives Revamping the P ublic Sector Others (women, children, climate change
38
6. 0 FISCAL RISK STATEMENT
Fiscal risks refer to events that could cause fiscal outturns to deviate from fiscal projections with
the potential to jeopardize the achievement of strategic fiscal objectives. Fiscal risks could be due
to external shocks including adverse terms of trade, epidemics/pandemics, natural disasters as
well as inappropriate macroeconomic policies that could lead to macroeconomic instability (low
and volatile economic growth, high inflation, unstable exchange rates, rising debt levels and high
domestic interest rates). Fiscal risks can also arise when contingent liabilities materialize such as
failure to meet minimum revenue guarantees in the case of public private partnerships; default
on loans guaranteed by government, litigations by contractors for not fulfilli ng certain contractual
obligations. The poor operational and financial management of State-Owned Enterprises is also a
major source of fiscal risk. Fiscal risks can be explicit, while others are implicit.
Government’s ability to cope with fiscal risk depends on the quality of its information about risks,
its powers to limit its exposure to those risks as well as its financial capacity to absorb the fiscal
consequences of risks that cannot be mitigated. The major sources of fiscal risks in Sierra Le one
could be sub-divided into two broad categories: Macroeconomic risks and Specific risks.
Macroeconomic risks include shocks to GDP growth, high inflation, adverse terms of trade
(increase in the price of key imports or fall in the price of key exports), sharp depreciations in the
exchange rate and rise in domestic interest rates.
Specific risks include shocks emanating from natural disasters, contingent liabilities of stateowned
enterprises, Public-Private Partnership transactions, and litigation against public institutions as
well as weak implementation of policy reforms.
6.1 Macroeconomic Risks

6.1.1 Volatile Economic Growth
The Sierra Leone economy is relatively undiversified and vulnerable to internal and external
shocks. The result has been volatile economic growth with adverse implications for domestic
revenue collection. After recovering by 4.1 percent in 2001 from the contraction of 2.0 percent in
2020, economic growth slowed down to 3.6 percent in 2022 and is projected to further moderate
to 2.6 percent in 2023 on concerns of the global economic uncertainty, higher food and energy
prices, depreciation of the Leone and the tight fiscal stance being adopted to stabilise the
economy. Domestic revenue performance has mirrored the trend in GDP growth over the period.
Domestic revenue dropped to 13.8 percent of GDP in 2020 from 14.6 percent in 2019 following
the contraction of the economy induced by the COVID-19 pandemic. Domestic revenue increased
to 14.1 percent in 2021 following the recovery of the economy and dipped to 13.0 percent of GDP
in 2022 as the economy slowed down to 3.6 percent. Because movement in domestic revenue
collections are directly linked to growth outturns, domestic revenues tend to be very volatile too
and this will also tend to complicate the budget implementation. In the midst of increasing
expenditures, this will lead to widening of the budget deficit and undermine Government efforts
in achieving its fiscal targets.
Latest simulations indicate that a one percentage point slowdown in the economy will lead to
drop in domestic revenue by two percentage points.
39
6.1.2 Higher Inflationary Pressures

Inflation remained persistently high and above 40.0 percent throughout the first half of the year.
The prices of domestic goods and services rose to 44.6 percent in June 2023 from 37.1 percent in
December, 2022. The rapid rise in headline inflation has deleterious effect on budget execution
through increase in the cost of goods and services budget, energy subsidies and the domestic
capital budget. Volatile and rapid increases in domestic prices in recent years has led to huge
overruns in the goods and services budget, energy subsidies and the domestic capital budget,
leading to a deterioration of the budget deficit and undermining Government efforts in achieving
its medium-term fiscal objectives. Recent simulations indicate that a one percentage point
increase in inflation will increase expenditure on goods and services by 3 percent.
6.1.3 Exchange Rate Volatility

Successive external shocks in recent years including the COVID-1 pandemic, ongoing war in
Ukraine and an appreciating US dollar coupled with policy slippages continue to undermining the
stability of the Leone /US dollar exchange rate. The exchange rate of the Leone to the US dollar
depreciated by about 70.0 percent in 2022 and although the pace of the depreciation has slowed,
the Leone has already depreciated by more than 25.0 percent as at end July 2023. As such
Government external obligations including external debt service payment, payment to foreign
missions, international organization subscriptions in local currency have increased sharply. The
impact of the exchange rate depreciation on the budget if this trend continues unabated will
increase Government expenditures above the budgeted levels. Given the weak revenue
performance, the budget deficit will widen and the target/ceiling projected in the medium term.
Simulations indicate that a one percentage depreciation in the exchange rate of the Leone to the
US dollar will increase Government expenditures by 5 percent.
The impact of exchange rate depreciation has also resulted in sharp increase in in the stock of
external debt when expressed in local currency, thereby increasing the stock of total debt above
the projected levels. External debt increased to 67.7 percent of GDP in 2022 from 51.1 percent in
2021 mainly due to the impact of depreciation of the Leone. Simulations indicated that a 10
percent depreciation in the Leone will increase the stock of external debt by 2.0 percentage points
of GDP.
6.1.4 Rising Interest rates on Government Securities

Sierra Leone also has a substantial stock of domestic debt in the form of marketable and
nonmarketable securities. As at end-June 2023, the stock of domestic debt amounted to NLe18.16
billion, while projected domestic interest payment for 2023 is NLe2.87 billion or 21.25 percent of
recurrent expenditure.
Interest rates for the mostly traded domestic debt instrument (364-days Treasury Bills) rose to
28.78 percent in August 2023 from 25 percent in2022, reflecting the Government stance of rolling
over stock of domestic debt amidst high inflation. Further increases in domestic interest rates
would increase overall government spending and contribute to the widening the budget deficit,
above the specified target. The Medium-Term Debt Strategy (MTDS) Analysis showed that an
increase in the 364 days T-bills rate by 300 basis point will increase the ratio of interest payments
to domestic revenue by 5 percentage points over the medium-term.
40
6.1.5 Adverse Terms of Trade

Adverse terms of trade shock could be perceived in two perspectives; reduction in the prices of
our key exports such as iron ore or the increase in the prices of our key imports such as fuel and/or
food products could lead to an adverse balance of payments position. This could also have serious
budgetary implication particularly in the form of drop in taxes including import duty and import
GST. Similarly, a drop in the price of our major export commodity such as iron ore due to, for
instance, a slowdown in the Chinese economy, could dampened demand for iron ore. This in turn
will result in drop in price of iron ore and related tax payments such as royalties, corporate and
personnel income taxes consequently, the reduction in domestic revenue will complicate the
implementation of the budget and undermine Government effort in achieving its fiscal deficit
target.
6.2 Specific Fiscal Risks

6.2.1 Contingent Liabilities of State-Owned Enterprise
The operations of state-owned enterprises (SoEs) continue to pose threats to the national budget
due to their weak financial health, a situation that has been exacerbated by the twin shocks of the
Russian/Ukraine war and the lingering impact of the COVID-19 pandemic. The rise in input prices,
particularly energy prices, and the depreciation of the Leone are challenging the financial
sustainability of several SoEs.
In particular, the Electricity Distribution and Supply Authority (EDSA) is putting significant stress
on the budget due mainly to the mismatch between the Authority’s buying and selling tariffs, as
well as its technical and commercial losses. EDSA cannot meet its operational expenses without
recourse to the national budget. In FY 2022, Government provided a subsidy of NLe729.6 million
to assist EDSA in meeting its payments obligation to Karpower and CLSG TRANSCO, and in the first
half of 2023, Government has already provided a subsidy of NLe274.6 million. Notwithstanding,
arrears to these two power suppliers is still huge, estimated at US$39.0 million as at end June
2023.
To understand fully the impact of the downward operations of these SoEs, the Ministry undertook
an assessment of the financial vulnerability and risks emanating from SoEs by rolling out the IMF
Health Check tool. Results from the tool indicated that most of the SOEs are making persistent
losses to the extent that more than 60% of SOEs are running high deficits and huge liabilities.
Analysis further points out that low revenue streams are major drivers of fiscal risks in the form
of Government support, subsidies, soft loans and guarantees. It showed that with the exception
of the two State-owned Banks, most SOEs is not financially sustainable. EDSA, SLAA and SLRTC,
for example, are battling with low profitability, tight liquidity and insolvency issues. However, the
poor financial performance of some of these SoEs can partly be attributed to the burden of
undertaking quasi-fiscal operations without full reimbursement from Government, and weak
corporate governance structure. The Government of Sierra Leone has not issued any guarantee
in recent years.
A significant proportion of Sierra Leone’s population live along the coastal lines, mountain areas
and lowlands that are prone to disaster. In the recent past, Sierra Leone has experienced bouts of
recurrent natural disasters such as flood, mudslide, tropical storms, fire, epidemics and
41
pandemics. As a result, the Country remain vulnerable not just to the occurrences of disaster, but
also to the financial impact of natural disasters and its related shocks. The higher frequency and
intensity of climate-related disasters imply a greater risk of a negative fiscal shock as there are
multiple channels through which public finances can be affected. On the one hand, it tends to
decrease Government revenue due to lower tax collection from the affected productive sectors
such as agriculture, fisheries and tourism. On the other hand, public expenditure is likely to
increase because of rising financial needs due to the emergency response and the reconstruction
of damaged public infrastructure.
Over the past eight (8) years, Sierra Leone has suffered three major natural disasters including the
Ebola epidemic in 2014 and 2015, mudslides and floods in Freetown in 2017 and the COVID-19
pandemic in 2020. In particular, economic growth contracted by 2 percent in 2020, as the COVID-
19 pandemic led to a contraction in the services and industrial sectors following global supply
chain disruptions, suspension of international travel, lockdowns, and the closure of land borders.
GDP per capita fell by 4 percent during the same year reversing some of the gains in poverty
reduction. This led to drop in domestic revenue collection to 13.8 percent of GDP in 2020 at the
height of COVID-19 from 14.6 percent of GDP in 2019. Also, following the Ukraine crisis and
associated uncertainty domestic revenue drop to 13.8 percent of GDP in 2022 after recovering to
14.1 percent of GDP in 2021 partly due to the reduction in petroleum excise duties to keep fuel
pump prices at subsidized levels. At the same time expenditure rose during the two years to 30.8
percent of GDP in 2022, owing partly to the implementation of programmes to mitigate the impact
of the crisis on the population such as subsidized electricity tariffs, support to hospitality workers
etc. Non-farm households who depend on income from the private sector (whether through self-
employment or salary) disproportionately saw drop in incomes across the board during the height
of the pandemic. The poverty rate jumped from 40.6 percent in 2019 to
43.5 percent in 2020, primarily affecting urban households (Sierra Leone Authorities and World
Bank estimates).
6.2.2 Public Private Partnership (PPP) Projects

Public Private Partnerships (PPP) arrangements reflects the collaboration between the public
sector and private investor for the delivery of public infrastructure and s ervices. This arrangement
could be seen in the energy sector (Karpower and Webuild), the road sector (Wellington-Masiaka
Toll Road); Health services (Connaught Cost recovery Pharmacy) and the Transport sector
(Freetown International Airport) to name but a few.
Presently, the energy sector accounts for more than 38 percent of the total active PPPs projects
distributed across various sectors in the country. These PPP projects represent huge investment
outlays that may result to contingent liabilities for government in the immediate future. Typical
risk associated with PPP arrangements includes minimum revenue guarantees, foreign exchange
risks, tax waivers as well as construction, force majeure, and termination risks.
Due to the complex nature of PPPs, it is expected that contractual obligations from PPPs may give
rise to implicit as well as explicit contingent liabilities that will negatively impact
42
Government’s budget and debt profile. Therefore, Government continues to strengthen the
‘gateway’ processes of managing PPPs and emphasize, among others, the assessment and
monitoring of all fiscal risks emanating from PPP arrangements.
In other to facilitate and maintain fair, equitable, transparent, competitive, and effective
procurement processes for PPPs, Government has strengthened the enabling legal and
institutional framework to guide PPP investments in the country. Important among others is the
gate - keeping role perform by PPP Units in the Office of the Vice President, the Public Investment
Management Unit at the Ministry of Economic Development and a dedicated PPP section within
the Fiscal Risks Management Division of the Ministry of Finance.
6.2.3 Public Sector Litigation

Legal actions against public institutions are becoming growing risk to the national budget. Public
institutions such as SLRA, EDSA, Sierratel, SLCB, Law Officers’ Department and local councils etc.
are battling with litigations. The estimated cost of total claims is NLe50.0 billion. However, it is
highly unlikely that most of these claims would ever eventuate, but there is need for continuous
monitoring of the progress and outcome of these litigations.
6.2.4 Policy Risks

Poor policy design as well as lack of implementation of agreed policies weaken public financial
management and pose significant threat to the national budget. Slow pace of implementing policy
reforms and recommendations agreed with development partners will delay the disbursement of
budget support and thus complicate budget management.
In the event triggers agreed with development partners are not met or there is delay in
implementing policy reforms, this will pose a great risk to budget implementation including the
accumulation of arrears.
6.3 Fiscal Risks Mitigating Measures

6.3.1 Mitigating Macroeconomic Risks
6.3.1.1 Implementation of the Economic and Financial Programme with the IMF Following the
weak macroeconomic situation at the end of the 2022 and the first half of 2023 characterised by
high budget deficit, high inflation, accelerated depreciation of the Leone and high debt level,
Government will adopt tighter macroeconomic policies in the medium-term to restore
macroeconomic stability and boost the resilience of the economy against external shocks. A
decisive tightening of macroeconomic policies is critical to restoring macroeconomic stability and
keeping debt on a sustainable path. In this context, Government will reintroduce fiscal
consolidation, which requires continued efforts to raise revenues and curtail expenditures while
protecting social spending and seeking grant financing. This will complement the efforts of the
Bank of Sierra Leone To this end, the implementation of the economic and financial programme
supported under the Extended Credit Facility (ECF) of the IMF remains on track. The IMF Executive
Board has successfully concluded seven (5) reviews. The combined sixth and seventh reviews was
concluded in June 2023.As articulated in the Memorandum of Economic and Financial Policies for
these reviews, Government will adopt tighter macroeconomic policies going forward aimed at
43
strengthening public finances and addressing debt vulnerabilities to stabilize the economy and
boost its resilience. There is also a need to continue governance and other structural reforms to
boost the resilience of the economy. The current ECF arrangement with the IMF will expire by the
end of 2023. Government will renegotiate a successor programme with the IMF in 2024 to sustain
the implementation of prudent fiscal policies.
6.3.1.2 Diversification of the Economy

Efforts continue to diversify the economy in order to strengthen its capacity to withstand shocks
that have the potential to disrupt economic activities and exports with adverse implications for
real GDP growth, domestic revenue collection, price and exchange rate stability. In the
agricultural sector, the Policy Shift to encourage private sector participation in the delivery of
agriculture inputs and mechanization services to farmers is progressing well. In the fisheries
sector, Government is sustaining efforts to combat illegal, unregulated and illegal fishing practices
and promote fish conservation practices including the observation of the ‘closed season’. In the
tourism sector, Government with support from the World Bank under the Sierra Leone Economic
Diversification Project (SLEDP) will embark on the upgrading of tourist destination sites in
Freetown, starting with the Leceister Peak, Tacugama Sanctuary and Bureh Beach in 2022. Efforts
to rebrand the country and promote domestic tourism are on-going. The project also support
Government’s efforts to improve the business environment and access to finance to support
private investments in order to promote sustainable and resilient economic growth.
6.3.2 Mitigation Strategies for SoEs Fiscal Risks and Guarantees

The Ministry, with support from the World Bank and IMF, has developed a State-owned
Enterprises Ownership and Governance Policy, which is currently being transform into Act under
the supervision of the Office of the Chief Minister. The Policy, and eventual ly the Act, would
strengthen the performance management of SOEs, re-enforce the motivation for the ownership
of SoEs through binding contract, improve accountability, transparency, internal control systems
as well as create the enabling environment for private sector participation to restore efficiency in
the operations of SoEs.
In addition, with support from IMF-AFRITAC West 2, the Ministry of Finance has developed an SOE
monitoring framework for both Financial and Non-financial SOEs to effectively monitor potential
fiscal risks emanating from SOEs. The framework identifies roles and responsibilities of relevant
stakeholders to avoid overlap and fragmentation in oversight responsibilities between the line
ministries, NCP and MoF.
The Fiscal Risks and SoE oversight Division continues to provide regular fiduciary oversight as well
as monitor and assess the full range of potential risks of SOEs to the national budget. On an annual
basis, the Ministry conducts contingent liability survey to identify possible contingent liabilities
that would emerge as threats to fiscal sustainability.
The Ministry is building staff capacity in managing risks relating to guarantees for a proper
assessment of PPP, SOEs, projects and other specific areas before the issuance of such guarantees.
44
As a way to cap guarantees, Government is in conformity with policy regulation with development
partners such as the IMF and World Bank.
Currently, issuance of guarantees for external debt for both private and public sectors is restricted
and in line with the Extended Credit Facility program as well as with the Memorandum of
Economic and Financial Policies (MEFP). Nonetheless, Government has been providing comfort
letters, which is a weak form of guarantee, to enable some Single Treasury Account Agencies
(TSAs) and state-owned enterprises secure loans facilities from local commercial banks. The risks
under such comfort letters are quite minimal as facilities are secured against steady stream of
cash flows from the operations of these entities.
6.3.4 Mitigating Risks from Natural Disasters

Due to current effect of climate change on the economy, it is indicated that the Long -term Goals
for mitigating climate change is reduction in human contribution to climate cha nge. Government
seeks to reduce CO2 emission levels by 5% by 2025, 10% by 2030, and 25% by 2050. This is in line
with the transformational shift toward a low-emission development pathway. Strategies such as
targeting priority sectors that lead to climate change, implementing Reducing Emissions from
Deforestation and Forest Degradation (REDD+) as well as promoting innovation and technology
transfer for sustainable breakthroughs in energy, waste would greatly improve on climate
conditions in the country. Through determined collaboration and management of these sectors,
Technology transfer through private sector partnerships will also create new markets, provide
jobs, and support economic growth, while reducing GHG emissions.
To mitigate risks from natural disasters generally, Government has established the National
Disaster Management Agency and developed Disaster Risk Financing Strategy
6.3.5 Strengthening Policy Implementation

In the mist of poor revenue mobilization due to low export, low production and increase import,
it is significant to implement Policy reform of those related to the World Bank Country Policy and
Institutional Assessment (CPIA) framework. Government continues to make significant efforts to
meet it budget and other fiscal policy commitments to the CPIA.
In mitigating the potential fiscal risks emanating from weak policy implementation, the Ministry
established a committed technical team in the Research and Delivery Department to restore
stability, achieve government outlined programs. The Macro fiscal Division is specifically
responsible for monitoring and reporting on progress in the implementation of policy reforms as
stated by the CPIA, and World Bank DPOs. Regular update on each policy is done on a quarterly
basis to review government exposure and commitment in DPOs.
Projects undertaken by government are streamline, to indicate the importance and financial
capacity to avoid carryover and increase in public debt.
45
6.3.6 Measures to Mitigate PPP Risks

(i) Government continues to benefit from IMF and World bank technical support to build
capacity of the staff of the Fiscal Risks Management Division in assessing PPP- Fiscal Risk
using the PFRAM and FRAT model;
(ii) Government commits to measured and provisioned for contingent liabilities arising from
the PPP risks assumed in the National budget;
(iii) The Government continue to use regulatory frameworks such as the PPP Act 2014,
Procurement Acts 2016 and the PFM Acts 2016 to guide the implementation of PPP
projects;
(iv) The Ministry is proposing to develop measures to set limit on exposure relating to
guarantees and insurance securitization.
46
ANNEX1. MTEF ALLOCATION OF NON SALARY, NON INTEREST RECURRENT EXPENDITURES FOR FY 2024 - 2028 BY THE BIG FIVE PRIORITIES
In thousands of Leones (NLe' t)
% of Total % of Total % of Total % of Total % of Total % of Total

FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
BIG FIVE CLUSTERS Non Int/Sal Non Int/Sal Non Int/Sal Non Int/Sal Non Int/Sal Non Int/Sal
Estimate Budget Indicative Indicative Indicative Indicative
Recurr Exp Recurr Exp Recurr Exp Recurr Exp Recurr Exp Recurr Exp
NLe' t NLe' t NLe' t NLe' t NLe' t NLe' t
CLUSTER 1 FEED SALONE 133,769.0 2.6% 254,301.3 4.1% 321,792.7 4.2% 385,546.9 4.3% 441,538.9 4.3% 497,530.5 4.3%
1.1 AGRICULTURE 64,717.0 1.2% 163,251.0 2.6% 213,825.1 2.8% 259,602.9 2.9% 297,279.7 2.9% 334,792.5 2.9%
401 Ministry of Agriculture and Food Security 39,200.0 0.8% 97,860.2 1.6% 122,593.2 1.6% 144,399.5 1.6% 165,325.5 1.6% 185,954.4 1.6%
410 National Protected Area Authority 5,100.0 0.1% 7,271.3 0.1% 9,109.1 0.1% 10,729.4 0.1% 12,284.3 0.1% 13,817.1 0.1%
418 Sierra Leone Agricultural Research Institute 5,100.0 0.1% 10,031.9 0.2% 12,567.3 0.2% 14,802.7 0.2% 16,947.9 0.2% 19,062.6 0.2%
426 Sierra Leone Seed Certification Agency 1,750.0 0.0% 3,480.4 0.1% 4,360.0 0.1% 5,135.5 0.1% 5,879.7 0.1% 6,613.4 0.1%
427 National Fertilizer Regulatory Agency 1,650.0 0.0% 3,367.2 0.1% 4,218.2 0.1% 4,968.6 0.1% 5,688.7 0.1% 6,398.5 0.1%
701 Devolved Function - Agriculture and Food Security Services 11,917.0 0.2% 41,240.1 0.7% 60,977.3 0.8% 79,567.2 0.9% 91,153.7 0.9% 102,946.5 0.9%
1.2 FISHERIES 69,052.0 1.3% 91,050.3 1.5% 107,967.5 1.4% 125,944.0 1.4% 144,259.2 1.4% 162,738.0 1.4%
402 Ministry of Fisheries and Marine Resources 17,900.0 0.3% 23,756.3 0.4% 29,760.4 0.4% 35,054.1 0.4% 40,134.0 0.4% 45,141.8 0.4%
415 Sierra Leone Maritime Administration 48,269.0 0.9% 62,961.1 1.0% 73,171.6 1.0% 85,037.8 1.0% 97,420.9 1.0% 110,024.6 1.0%
701 Devolved Function - Fisheries and Marine Resources 2,883.0 0.1% 4,332.8 0.1% 5,035.5 0.1% 5,852.1 0.1% 6,704.3 0.1% 7,571.6 0.1%
47
CLUSTER 2 HUMAN CAPITAL DEVELOPMENT 218,348.0 4.2% 284,973.5 4.6% 357,455.7 4.7% 417,872.1 4.7% 478,593.2 4.7% 539,544.5 4.7%
2.1 DELIVERING FREE QUALITY EDUCATION 63,968.0 1.2% 91,553.4 1.5% 111,015.5 1.5% 130,021.4 1.5% 148,902.2 1.5% 167,770.5 1.5%
ANNEX 1
301 Ministry of Basic and Secondary Education 34,900.0 0.7% 44,494.1 0.7% 55,739.5 0.7% 65,654.2 0.7% 75,168.6 0.7% 84,548.0 0.7%
312 Teaching Service Commission 3,500.0 0.1% 6,460.7 0.1% 8,093.6 0.1% 9,533.3 0.1% 10,914.8 0.1% 12,276.7 0.1%
321 Student's Loan Scheme Secretariat 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
701 Devolved Function - Education Services 25,568.0 0.5% 40,598.5 0.7% 47,182.4 0.6% 54,834.0 0.6% 62,818.8 0.6% 70,945.9 0.6%
2.2 STRENGTHENING TECHNICAL AND HIGHER EDUCATION 154,380.0 3.0% 193,420.1 3.1% 246,440.2 3.2% 287,850.7 3.2% 329,691.0 3.2% 371,773.9 3.2%
300 Ministry of Technical and Higher Education 149,580.0 2.9% 187,488.3 0.1 239,009.1 3.1% 279,097.8 0.1 319,669.7 3.1% 360,502.2 3.1%
316 Civil Service Training College 800.0 0.0% 1,405.3 0.0% 1,760.5 0.0% 2,073.6 0.0% 2,374.1 0.0% 2,670.4 0.0%
321 Student's Loan Scheme Secretariat 4,000.0 0.1% 4,526.5 0.1% 5,670.6 0.1% 6,679.2 0.1% 7,647.2 0.1% 8,601.4 0.1%
CLUSTER 3 OTHER HUMAN DEVELOPMENT 313,816.1 6.1% 379,395.6 6.2% 469,019.4 6.2% 551,183.6 6.2% 631,125.2 6.2% 710,367.5 6.2%
3.1 HEALTHCARE IMPROVEMENT 227,915.0 4.4% 295,255.1 4.8% 367,359.6 4.8% 432,196.1 4.9% 494,855.1 4.9% 556,799.7 4.9%
304 Ministry of Health and Sanitation 112,500.0 2.2% 123,159.1 2.0% 154,286.2 2.0% 181,729.9 2.0% 208,065.7 2.0% 234,027.7 2.0%
307 National Medical Supplies Agency 65,100.0 1.3% 123,104.4 2.0% 154,217.7 2.0% 181,649.1 2.0% 207,973.2 2.0% 233,923.6 2.0%
309 Dental and Medical Board 700.0 0.0% 792.1 0.0% 992.4 0.0% 1,168.9 0.0% 1,338.3 0.0% 1,505.2 0.0%

FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
311 Health Service Commission 4,000.0 0.1% 6,026.5 0.1% 7,549.7 0.1% 8,892.6 0.1% 10,181.3 0.1% 11,451.7 0.1%
314 National HIV and AIDS Commission 2,500.0 0.0% 2,829.1 0.0% 3,544.1 0.0% 4,174.5 0.0% 4,779.5 0.0% 5,375.9 0.0%
315 Teaching Hospitals Complex Administration 2,300.0 0.0% 2,602.8 0.0% 3,260.6 0.0% 3,840.6 0.0% 4,397.1 0.0% 4,945.8 0.0%
317 Post Graduate College of Health Specialists 2,900.0 0.1% 3,281.7 0.1% 4,111.2 0.1% 4,842.4 0.1% 5,544.2 0.1% 6,236.0 0.1%
345 Pharmacy Board Services 5,000.0 0.1% 5,658.2 0.1% 7,088.2 0.1% 8,349.0 0.1% 9,559.0 0.1% 10,751.7 0.1%
614 Transfers to NaCOVERC 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
701 Devolved Function - Health Care Services 32,915.0 0.6% 27,801.0 0.5% 32,309.5 0.4% 37,549.1 0.4% 43,017.0 0.4% 48,582.2 0.4%
3.2 IMPROVING WATER SANITATION 65,301.1 1.3% 60,828.8 1.0% 72,456.3 1.0% 84,589.5 1.0% 96,887.2 1.0% 109,270.7 1.0%
414 Ministry of Water Resources and Sanitation 17,200.0 0.3% 19,464.2 0.3% 24,383.5 0.3% 28,720.7 0.3% 32,882.8 0.3% 36,985.9 0.3%
701 Devolved Function - Solid Waste Management Services 40,763.1 0.8% 34,716.3 0.6% 40,346.3 0.5% 46,889.2 0.5% 53,717.2 0.5% 60,666.7 0.5%
701 Devolved Function - Rural Water Services 7,338.0 0.1% 6,648.4 0.1% 7,726.6 0.1% 8,979.6 0.1% 10,287.2 0.1% 11,618.1 0.1%
3.3 SOCIAL PROTECTION 12,800.0 0.2% 14,484.9 0.2% 18,145.9 0.2% 21,373.5 0.2% 24,470.9 0.2% 27,524.4 0.2%
305 Social Protection Programmes 9,700.0 0.2% 10,976.9 0.2% 13,751.2 0.2% 16,197.1 0.2% 18,544.4 0.2% 20,858.3 0.2%
48
308 National Commission for Social Action 3,100.0 0.1% 3,508.1 0.1% 4,394.7 0.1% 5,176.4 0.1% 5,926.6 0.1% 6,666.1 0.1%
ANNEX 1
3.4 POPULATION, LANDS AND HOUSING 7,800.0 0.2% 8,826.8 0.1% 11,057.6 0.1% 13,024.5 0.1% 14,912.0 0.1% 16,772.7 0.1%
306 Ministry of Lands and Country Planning 3,800.0 0.1% 4,300.2 0.1% 5,387.1 0.1% 6,345.3 0.1% 7,264.8 0.1% 8,171.3 0.1%
322 National Land Commission of Sierra Leone 4,000.0 0.1% 4,526.5 0.1% 5,670.6 0.1% 6,679.2 0.1% 7,647.2 0.1% 8,601.4 0.1%
CLUSTER 4 YOUTH EMPLOYMENT SCHEME 154,157.0 3.0% 197,913.2 3.2% 244,082.3 3.2% 286,722.2 3.2% 328,313.5 3.2% 369,582.1 3.2%
4.1 EMPLOYMENT, YOUTH EMPOWERMENT AND MIGRATION 89,662.0 1.7% 93,016.6 1.5% 115,757.3 1.5% 136,192.8 1.5% 155,937.5 1.5% 175,455.4 1.5%
302 Ministry of Sports 4,000.0 0.1% 4,526.5 0.1% 5,670.6 0.1% 6,679.2 0.1% 7,647.2 0.1% 8,601.4 0.1%
320 National Sports Authority 58,200.0 1.1% 57,570.3 0.9% 72,120.6 1.0% 84,949.0 1.0% 97,259.6 1.0% 109,395.5 1.0%
310 Ministry of Youth Affairs 3,000.0 0.1% 3,394.9 0.1% 4,252.9 0.1% 5,009.4 0.1% 5,735.4 0.1% 6,451.0 0.1%
310 National Youth Commission 3,200.0 0.1% 3,621.2 0.1% 4,536.5 0.1% 5,343.4 0.1% 6,117.7 0.1% 6,881.1 0.1%
313 National Youth Service 3,000.0 0.1% 3,394.9 0.1% 4,252.9 0.1% 5,009.4 0.1% 5,735.4 0.1% 6,451.0 0.1%
407 Ministry of Employment, Labour and Social Security 12,100.0 0.2% 12,026.3 0.2% 15,065.8 0.2% 17,745.6 0.2% 20,317.3 0.2% 22,852.4 0.2%
701 Devolved Function - Youth and Sports Services 6,162.0 0.1% 8,482.4 0.1% 9,858.0 0.1% 11,456.7 0.1% 13,125.0 0.1% 14,823.0 0.1%
4.2 TOURISM 17,250.0 0.3% 21,125.8 0.3% 26,465.1 0.3% 31,172.6 0.4% 35,690.1 0.4% 40,143.4 0.4%
303 Ministry of Tourism and Cultural Affairs 7,150.0 0.1% 9,696.3 0.2% 12,146.9 0.2% 14,307.6 0.2% 16,381.0 0.2% 18,424.9 0.2%

FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
Administrative and Operating Costs 2,100.0 0.0% 5,244.8 0.1% 6,570.4 0.1% 7,739.1 0.1% 8,860.6 0.1% 9,966.2 0.1%
Promoting Local and International Tourism 5,050.0 0.1% 4,451.5 0.1% 5,576.6 0.1% 6,568.5 0.1% 7,520.4 0.1% 8,458.7 0.1%
405 Ministry of Tourism and Cultural Affairs 10,100.0 0.2% 11,429.5 0.2% 14,318.2 0.2% 16,865.1 0.2% 19,309.1 0.2% 21,718.5 0.2%
National Tourist Board 5,400.0 0.1% 6,110.8 0.1% 7,655.3 0.1% 9,017.0 0.1% 10,323.7 0.1% 11,611.8 0.1%
o/w Development and Implementation of Tourism Marketing Strategy 2,000.0 0.0% 2,263.3 0.0% 2,835.3 0.0% 3,339.6 0.0% 3,823.6 0.0% 4,300.7 0.0%
Monuments and Relics Commission 3,000.0 0.1% 3,394.9 0.1% 4,252.9 0.1% 5,009.4 0.1% 5,735.4 0.1% 6,451.0 0.1%
National and Railway Museums 1,700.0 0.0% 1,923.8 0.0% 2,410.0 0.0% 2,838.7 0.0% 3,250.0 0.0% 3,655.6 0.0%
4.3 TRADE AND INDUSTRY 26,440.0 0.5% 36,920.5 0.6% 46,251.7 0.6% 54,478.7 0.6% 62,373.6 0.6% 70,156.5 0.6%
409 Ministry of Trade and Industry 14,440.0 0.3% 18,840.8 0.3% 23,602.6 0.3% 27,801.0 0.3% 31,829.8 0.3% 35,801.5 0.3%
Export Development 11,440.0 0.2% 12,945.9 0.2% 16,217.9 0.2% 19,102.6 0.2% 21,870.9 0.2% 24,599.9 0.2%
Sierra Leone Standards Bureau 4,300.0 0.1% 4,866.0 0.1% 6,095.9 0.1% 7,180.2 0.1% 8,220.7 0.1% 9,246.5 0.1%
Department of Co-operatives 1,200.0 0.0% 1,358.0 0.0% 1,701.2 0.0% 2,003.8 0.0% 2,294.2 0.0% 2,580.4 0.0%
Support to Sierra Leone Produce Marketing Company 1,000.0 0.0% 1,131.6 0.0% 1,417.6 0.0% 1,669.8 0.0% 1,911.8 0.0% 2,150.3 0.0%
Produce Monitoring and Marketing Board 3,200.0 0.1% 3,621.2 0.1% 4,536.5 0.1% 5,343.4 0.1% 6,117.7 0.1% 6,881.1 0.1%
Sierra Leone Business Forum 290.0 0.0% 328.2 0.0% 411.1 0.0% 484.2 0.0% 554.4 0.0% 623.6 0.0%
Coordination of Doing Business Reforms Unit 400.0 0.0% 452.7 0.0% 567.1 0.0% 667.9 0.0% 764.7 0.0% 860.1 0.0%
Industrial Planning and Development 250.0 0.0% 282.9 0.0% 354.4 0.0% 417.5 0.0% 477.9 0.0% 537.6 0.0%
Consumer Protection Agency 800.0 0.0% 905.3 0.0% 1,134.1 0.0% 1,335.8 0.0% 1,529.4 0.0% 1,720.3 0.0%
421 Small and Medium Enterprises Development Agency (SMEDA) 1,900.0 0.0% 2,150.1 0.0% 2,693.5 0.0% 3,172.6 0.0% 3,632.4 0.0% 4,085.6 0.0%
428 National Investment Board 10,100.0 0.2% 15,929.5 0.3% 19,955.5 0.3% 23,505.1 0.3% 26,911.4 0.3% 30,269.4 0.3%
49
Investment Promotion 8,500.0 0.2% 12,118.9 0.2% 15,181.8 0.2% 17,882.3 0.2% 20,473.8 0.2% 23,028.4 0.2%
Sierra Leone Investment and Export Promotion Agency 5,200.0 0.1% 5,884.5 0.1% 7,371.8 0.1% 8,683.0 0.1% 9,941.3 0.1% 11,181.8 0.1%
ANNEX 1
Corporate Affairs Commission 1,500.0 0.0% 2,197.5 0.0% 2,752.8 0.0% 3,242.5 0.0% 3,712.4 0.0% 4,175.6 0.0%
Public Private Partnership Unit 1,800.0 0.0% 4,036.9 0.1% 5,057.2 0.1% 5,956.8 0.1% 6,820.0 0.1% 7,671.0 0.1%
4.4 MADE IN SIERRA LEONE 3,200.0 0.1% 3,621.2 0.1% 4,536.5 0.1% 5,343.4 0.1% 6,117.7 0.1% 6,881.1 0.1%
419 Local Content Agency 3,200.0 0.1% 3,621.2 0.1% 4,536.5 0.1% 5,343.4 0.1% 6,117.7 0.1% 6,881.1 0.1%
4.5 MANAGING NATURAL RESOURCES 17,605.0 0.3% 43,229.0 0.7% 51,071.6 0.7% 59,534.7 0.7% 68,194.6 0.7% 76,945.8 0.7%
403 Ministry of Mines and Mineral Resources 5,020.0 0.1% 9,188.4 0.1% 11,510.7 0.2% 13,558.2 0.2% 15,523.0 0.2% 17,459.9 0.2%
Mines Division 3,820.0 0.1% 5,830.5 0.1% 7,304.1 0.1% 8,603.3 0.1% 9,850.0 0.1% 11,079.1 0.1%
Review the legal framework for mines and minerals 470.0 0.0% 539.5 0.0% 675.8 0.0% 796.1 0.0% 911.4 0.0% 1,025.1 0.0%
Support to the National Minerals Agency 2,400.0 0.0% 4,215.9 0.1% 5,281.5 0.1% 6,220.9 0.1% 7,122.4 0.1% 8,011.1 0.1%
Support to Artisanal Miners and Small Scale Mining Entrepreneurs 950.0 0.0% 1,075.1 0.0% 1,346.8 0.0% 1,586.3 0.0% 1,816.2 0.0% 2,042.8 0.0%
424 Sierra Leone Petroleum Directorate 12,585.0 0.2% 34,040.6 0.6% 39,560.9 0.5% 45,976.5 0.5% 52,671.6 0.5% 59,485.8 0.5%
CLUSTER 5 REVAMPING THE PUBLIC SERVICE ARCHITECTURE AND GOVERNANCE 2,776,181.5 53.6% 3,193,667.8 51.8% 3,957,762.0 52.1% 4,632,594.8 52.2% 5,304,993.2 52.2% 5,974,860.6 52.1%
105 Ministry of Public Administration and Political Affairs 3,400.0 0.1% 3,847.6 0.1% 4,820.0 0.1% 5,677.3 0.1% 6,500.1 0.1% 7,311.2 0.1%
106 Office of the Chief Minister 31,850.0 0.6% 27,518.4 0.4% 34,473.4 0.5% 40,605.4 0.5% 46,489.8 0.5% 52,290.7 0.5%
106 Office of Presidential Infrastructure Initiative 1,200.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
106 Directorate of Science, Technology and Innovation 3,500.0 0.1% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
107 Ministry of Local Government and Rural Development 6,505.0 0.1% 9,361.3 0.2% 11,727.3 0.2% 13,813.3 0.2% 15,815.0 0.2% 17,788.4 0.2%
107 Southern Province 4,150.0 0.1% 4,630.5 0.1% 5,800.8 0.1% 6,832.6 0.1% 7,822.7 0.1% 8,798.9 0.1%
107 Eastern Province 4,300.0 0.1% 4,234.4 0.1% 5,304.6 0.1% 6,248.2 0.1% 7,153.6 0.1% 8,046.2 0.1%

FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
107 Northern Province 4,100.0 0.1% 4,573.9 0.1% 5,729.9 0.1% 6,749.1 0.1% 7,727.2 0.1% 8,691.3 0.1%
107 North West Province 3,600.0 0.1% 4,008.1 0.1% 5,021.1 0.1% 5,914.2 0.1% 6,771.3 0.1% 7,616.2 0.1%
108 Sierra Leone Small Arms Commission 2,000.0 0.0% 3,763.3 0.1% 4,714.4 0.1% 5,553.0 0.1% 6,357.7 0.1% 7,151.0 0.1%
109 Independent Commission for Peace and National Cohesion 3,500.0 0.1% 8,960.7 0.1% 11,225.5 0.1% 13,222.2 0.1% 15,138.3 0.1% 17,027.2 0.1%
110 Office of the Secretary to the President 137,929.0 2.7% 103,580.0 1.7% 129,758.7 1.7% 152,839.5 1.7% 174,988.6 1.7% 196,823.3 1.7%
110 National Assets and Government Property Commission 1,000.0 0.0% 1,131.6 0.0% 1,417.6 0.0% 1,669.8 0.0% 1,911.8 0.0% 2,150.3 0.0%
110 Public Sector Reform Unit (PSRU) 1,100.0 0.0% 1,244.8 0.0% 1,559.4 0.0% 1,836.8 0.0% 2,103.0 0.0% 2,365.4 0.0%
110 Anti-Corruption Commission 10,000.0 0.2% 11,316.4 0.2% 14,176.5 0.2% 16,698.1 0.2% 19,117.9 0.2% 21,503.4 0.2%
110 Office of the Ombudsman 2,500.0 0.0% 2,829.1 0.0% 3,544.1 0.0% 4,174.5 0.0% 4,779.5 0.0% 5,375.9 0.0%
110 Independent Media Commission 1,500.0 0.0% 1,697.5 0.0% 2,126.5 0.0% 2,504.7 0.0% 2,867.7 0.0% 3,225.5 0.0%
110 Political Parties Registration Commission 9,500.0 0.2% 3,618.9 0.1% 4,533.6 0.1% 5,340.0 0.1% 6,113.8 0.1% 6,876.7 0.1%
110 Law Reform Commission 1,000.0 0.0% 1,131.6 0.0% 1,417.6 0.0% 1,669.8 0.0% 1,911.8 0.0% 2,150.3 0.0%
110 Sierra Leone Insurance Commission 2,000.0 0.0% 2,263.3 0.0% 2,835.3 0.0% 3,339.6 0.0% 3,823.6 0.0% 4,300.7 0.0%
110 Local Government Service Commission 1,600.0 0.0% 1,810.6 0.0% 2,268.2 0.0% 2,671.7 0.0% 3,058.9 0.0% 3,440.5 0.0%
110 National Monitoring and Evaluation Department 4,000.0 0.1% 4,526.5 0.1% 5,670.6 0.1% 6,679.2 0.1% 7,647.2 0.1% 8,601.4 0.1%
110 Presidential Initiative for Climate Change, Renewable Energy and Food Security 7,000.0 0.1% 12,000.0 0.2% 15,032.9 0.2% 17,706.8 0.2% 20,272.9 0.2% 22,802.5 0.2%
112 Office of the Vice President 34,040.0 0.7% 39,941.3 0.6% 50,036.0 0.7% 58,936.1 0.7% 67,477.0 0.7% 75,896.6 0.7%
116 Parliament 46,000.0 0.9% 54,002.2 0.9% 67,650.6 0.9% 79,684.0 0.9% 91,231.6 0.9% 102,615.3 0.9%
117 Cabinet Secretariat 3,700.0 0.1% 4,268.8 0.1% 5,287.8 0.1% 6,228.4 0.1% 7,131.0 0.1% 8,020.8 0.1%
118 The Judiciary 18,000.0 0.3% 18,869.5 0.3% 23,638.5 0.3% 27,843.2 0.3% 31,878.2 0.3% 35,855.8 0.3%
121 Audit Service Sierra Leone 14,500.0 0.3% 17,145.5 0.3% 21,478.8 0.3% 25,299.3 0.3% 28,965.6 0.3% 32,579.9 0.3%
122 Human Resource Management Office 4,500.0 0.1% 5,092.4 0.1% 6,379.4 0.1% 7,514.1 0.1% 8,603.1 0.1% 9,676.5 0.1%
123 Public Service Commission 3,500.0 0.1% 3,960.7 0.1% 4,961.8 0.1% 5,844.3 0.1% 6,691.3 0.1% 7,526.2 0.1%
124 Law Officers' Department 27,500.0 0.5% 32,720.0 0.5% 40,989.6 0.5% 48,280.6 0.5% 55,277.4 0.5% 62,174.7 0.5%
125 Local Courts 600.0 0.0% 979.0 0.0% 1,226.4 0.0% 1,444.6 0.0% 1,653.9 0.0% 1,860.3 0.0%
126 Independent Police Complaints Board 1,400.0 0.0% 1,584.3 0.0% 1,984.7 0.0% 2,337.7 0.0% 2,676.5 0.0% 3,010.5 0.0%
50
127 Ministry of Planning and Economic Development 16,200.0 0.3% 15,503.4 0.3% 19,421.7 0.3% 22,876.4 0.3% 26,191.6 0.3% 29,459.7 0.3%
128 Ministry of Foreign Affairs & International Co-operation 129,495.0 2.5% 206,724.9 3.4% 258,972.3 3.4% 305,037.0 3.4% 349,242.2 3.4% 392,819.8 3.4%
129 Ministry of Finance 170,801.8 3.3% 606,137.3 9.8% 760,305.7 10.0% 895,544.9 10.1% 1,025,325.0 10.1% 1,153,262.8 10.1%
ANNEX 1
130 National Revenue Authority 254,728.0 4.9% 338,384.6 5.5% 393,260.6 5.2% 457,035.8 5.1% 523,588.6 5.1% 591,326.9 5.2%
131 Revenue Appellate Board 1,000.0 0.0% 1,131.6 0.0% 1,417.6 0.0% 1,669.8 0.0% 1,911.8 0.0% 2,150.3 0.0%
132 Accountant-General's Department 30,000.0 0.6% 39,849.1 0.6% 49,920.5 0.7% 58,800.1 0.7% 67,321.3 0.7% 75,721.5 0.7%
133 Ministry of Information and Communication 7,400.0 0.1% 9,808.3 0.2% 12,287.2 0.2% 14,472.8 0.2% 16,570.2 0.2% 18,637.8 0.2%
134 Electoral Commission Sierra Leone 395,000.0 7.6% 15,000.0 0.2% 32,432.6 0.4% 37,692.2 0.4% 43,180.8 0.4% 48,767.3 0.4%
137 National Commission For Democracy 3,400.0 0.1% 2,847.6 0.0% 3,567.3 0.0% 4,201.8 0.0% 4,810.7 0.0% 5,411.0 0.0%
138 Statistics - Sierra Leone 7,000.0 0.1% 7,921.5 0.1% 9,923.5 0.1% 11,688.7 0.1% 13,382.5 0.1% 15,052.4 0.1%
139 National Commission for Privatisation 2,300.0 0.0% 2,602.8 0.0% 3,260.6 0.0% 3,840.6 0.0% 4,397.1 0.0% 4,945.8 0.0%
140 Mass Media Services 4,000.0 0.1% 4,526.5 0.1% 5,670.6 0.1% 6,679.2 0.1% 7,647.2 0.1% 8,601.4 0.1%
141 Government Printing Department 3,600.0 0.1% 4,073.9 0.1% 5,103.5 0.1% 6,011.3 0.1% 6,882.5 0.1% 7,741.2 0.1%
142 National Public Procurement Authority 5,800.0 0.1% 6,563.5 0.1% 8,222.3 0.1% 9,684.9 0.1% 11,088.4 0.1% 12,472.0 0.1%
143 Justice and Legal Service Commission 500.0 0.0% 965.8 0.0% 1,209.9 0.0% 1,425.1 0.0% 1,631.7 0.0% 1,835.3 0.0%
144 National Commission for Human Rights 4,500.0 0.1% 3,894.9 0.1% 4,879.3 0.1% 5,747.2 0.1% 6,580.1 0.1% 7,401.1 0.1%
145 Rights to Access Information Commission 2,500.0 0.0% 3,829.1 0.1% 4,796.9 0.1% 5,650.1 0.1% 6,468.9 0.1% 7,276.1 0.1%
146 Ministry of Western Region 2,000.0 0.0% 2,763.3 0.0% 3,461.7 0.0% 4,077.4 0.0% 4,668.3 0.0% 5,250.8 0.0%
201 Ministry of Defence 262,600.0 5.1% 266,535.3 4.3% 333,899.1 4.4% 393,291.4 4.4% 450,286.2 4.4% 506,471.9 4.4%

FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
203 National Civil Registration Authority 6,200.0 0.1% 5,884.5 0.1% 7,371.8 0.1% 8,683.0 0.1% 9,941.3 0.1% 11,181.8 0.1%
205 Ministry of Internal Affairs 4,100.0 0.1% 4,639.7 0.1% 5,812.3 0.1% 6,846.2 0.1% 7,838.4 0.1% 8,816.4 0.1%
206 Sierra Leone Police 313,960.0 6.1% 307,806.4 5.0% 385,601.1 5.1% 454,189.7 5.1% 520,009.8 5.1% 584,895.4 5.1%
207 Sierra Leone Correctional Services 126,150.0 2.4% 152,983.6 2.5% 191,648.5 2.5% 225,737.9 2.5% 258,451.3 2.5% 290,700.2 2.5%
208 National Fire Authority 13,400.0 0.3% 12,808.3 0.2% 16,045.4 0.2% 18,899.5 0.2% 21,638.4 0.2% 24,338.4 0.2%
209 Central Intelligence & Security Unit 13,000.0 0.3% 12,211.3 0.2% 14,383.4 0.2% 16,941.8 0.2% 19,396.9 0.2% 21,817.3 0.2%
210 Office of National Security 48,000.0 0.9% 10,474.5 0.2% 13,121.9 0.2% 15,455.9 0.2% 17,695.8 0.2% 19,903.8 0.2%
211 Immigration Department 7,900.0 0.2% 8,939.9 0.1% 11,199.4 0.1% 13,191.5 0.1% 15,103.2 0.1% 16,987.7 0.1%
212 National Drugs Law Enforcement Agency 950.0 0.0% 1,075.1 0.0% 1,346.8 0.0% 1,586.3 0.0% 1,816.2 0.0% 2,042.8 0.0%
213 National Disaster Management Agency 15,000.0 0.3% 16,974.5 0.3% 21,264.7 0.3% 25,047.1 0.3% 28,676.9 0.3% 32,255.1 0.3%
214 National Cybersecurity Coordination Centre 1,000.0 0.0% 3,631.6 0.1% 4,549.5 0.1% 5,358.7 0.1% 6,135.3 0.1% 6,900.9 0.1%
412 National Telecommunications Authority (NatCA) 275,595.0 5.3% 365,107.4 5.9% 449,317.0 5.9% 522,182.9 5.9% 598,222.2 5.9% 675,616.2 5.9%
416 Civil Aviation Authority 57,406.0 1.1% 76,315.7 1.2% 103,691.8 1.4% 120,507.5 1.4% 138,055.6 1.4% 155,916.3 1.4%
423 Sierra Leone Petroleum Regulation Agency 21,136.7 0.4% 39,638.4 0.6% 46,066.6 0.6% 53,537.3 0.6% 61,333.3 0.6% 69,268.1 0.6%
615 GoSL Cargo Tracking/SLPA 156,829.0 3.0% 212,920.9 3.5% 246,647.4 3.2% 277,946.1 3.1% 318,420.2 3.1% 359,615.2 3.1%
701 Devolved Function - Sensitisation on Fire Prevention Services 1,569.0 0.0% 3,508.3 0.1% 4,077.2 0.1% 4,738.4 0.1% 5,428.4 0.1% 6,130.7 0.1%
701 Local Government Administration Grants 10,187.0 0.2% 23,072.2 0.4% 26,812.8 0.4% 31,160.1 0.4% 35,697.6 0.4% 40,315.9 0.4%
CLUSTER 6 INFRASTRUCTURE AND ECONOMIC COMPETITIVENESS 1,444,543.4 27.9% 1,754,919.1 28.4% 2,093,414.0 27.6% 2,435,553.3 27.4% 2,790,075.0 27.4% 3,149,990.4 27.5%
6.1 IMPROVING SUPPLY OF ENERGY 1,116,983.4 21.5% 1,351,224.3 21.9% 1,570,916.5 20.7% 1,825,795.1 20.6% 2,091,657.8 20.6% 2,362,213.9 20.6%
406 Ministry of Energy 1,115,783.4 21.5% 1,349,866.3 21.9% 1,569,215.4 20.7% 1,823,791.4 20.5% 2,089,363.6 0.5 2,359,633.5 20.6%
413 Sierra Leone Electricity and Water Regulatory Commission 1,200.0 0.0% 1,358.0 0.0% 1,701.2 0.0% 2,003.8 0.0% 2,294.2 0.0% 2,580.4 0.0%
51
6.2 ADVANCING NATIONAL TRANSPORT SYSTEM 104,792.0 2.0% 158,261.6 2.6% 211,315.6 2.8% 247,189.8 2.8% 283,100.8 2.8% 319,093.0 2.8%
404 Ministry of Transport and Aviation 50,000.0 1.0% 81,581.8 1.3% 102,200.7 1.3% 120,379.7 1.4% 137,824.8 1.4% 155,022.2 1.4%
ANNEX 1
425 Sierra Leone Road Safety Authority 54,792.0 1.1% 76,679.7 1.2% 109,114.9 1.4% 126,810.1 1.4% 145,276.0 1.4% 164,070.8 1.4%
6.3 IMPROVING ROADS NETWORK SYSTEM 218,768.0 4.2% 236,472.6 3.8% 299,956.4 4.0% 349,346.3 3.9% 400,178.3 3.9% 451,656.3 3.9%
408 Ministry of Works and Public Assests 20,830.0 0.4% 37,913.8 0.6% 47,496.1 0.6% 55,944.5 0.6% 64,051.8 0.6% 72,044.0 0.6%
411 Road Maintenance Fund 197,938.0 3.8% 198,558.8 3.2% 252,460.3 3.3% 293,401.8 3.3% 336,126.5 3.3% 379,612.3 3.3%
6.4 IMPROVING COMMUNICATION AND TECHNOLOGY 4,000.0 0.1% 8,960.7 0.1% 11,225.4 0.1% 13,222.1 0.1% 15,138.3 0.1% 17,027.2 0.1%
135 Ministry of Communication, Technology and Innovation 4,000.0 0.1% 8,960.7 0.1% 11,225.4 0.1% 13,222.1 0.1% 15,138.3 0.1% 17,027.2 0.1%
CLUSTER 7 ADDRESSING WOMEN AND CHILDREN 21,905.0 0.4% 24,375.4 0.4% 29,681.2 0.4% 34,788.5 0.4% 39,838.9 0.4% 44,877.0 0.4%
7.1 WOMEN ISSUES 15,205.0 0.3% 17,546.6 0.3% 21,529.8 0.3% 25,268.4 0.3% 28,934.9 0.3% 32,580.8 0.3%
305 Ministry of Social Welfare 7,800.0 0.2% 8,826.8 0.1% 11,057.6 0.1% 13,024.5 0.1% 14,912.0 0.1% 16,772.7 0.1%
319 Ministry of Gender and Children's Affairs 3,300.0 0.1% 3,734.4 0.1% 4,678.2 0.1% 5,510.4 0.1% 6,308.9 0.1% 7,096.1 0.1%
701 Devolved Function - Social Welfare 4,105.0 0.1% 4,985.4 0.1% 5,793.9 0.1% 6,733.5 0.1% 7,714.0 0.1% 8,712.0 0.1%
7.2 CHILDREN ISSUES 6,700.0 0.1% 6,828.8 0.1% 8,151.4 0.1% 9,520.1 0.1% 10,903.9 0.1% 12,296.1 0.1%
319 National Children's Commission 2,100.0 0.0% 2,376.4 0.0% 2,977.1 0.0% 3,506.6 0.0% 4,014.8 0.0% 4,515.7 0.0%

FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
701 Devolved Function - Children's Affairs Services 4,600.0 0.1% 4,452.3 0.1% 5,174.3 0.1% 6,013.5 0.1% 6,889.1 0.1% 7,780.4 0.1%
CLUSTER 8 ENVIRONMENT, CLIMATE CHANGE AND DISASTER MANAGEMENT 52,865.0 1.0% 79,039.5 1.3% 118,401.7 1.6% 137,938.4 1.6% 158,007.1 1.6% 178,316.6 1.6%
318 Ministry of Environment and Climate Change 4,150.0 0.1% 9,696.3 0.2% 12,146.9 0.2% 14,307.6 0.2% 16,381.0 0.2% 18,424.9 0.2%
417 Nuclear Safety and Radiation Protection Authority 4,500.0 0.1% 5,092.4 0.1% 6,379.4 0.1% 7,514.1 0.1% 8,603.1 0.1% 9,676.5 0.1%
420 Sierra Leone Environment Protection Agency 42,215.0 0.8% 61,987.5 1.0% 97,040.1 1.3% 112,777.1 1.3% 129,199.5 1.3% 145,914.4 1.3%
422 Sierra Leone Meteorological Agency 2,000.0 0.0% 2,263.3 0.0% 2,835.3 0.0% 3,339.6 0.0% 3,823.6 0.0% 4,300.7 0.0%
CLUSTER 9 OTHERS 68,467.0 1.3% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
610 Contingency Fund 68,467.0 1.3% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
GRAND TOTAL 5,184,052.0 100.0% 6,168,585.3 100.0% 7,591,608.8 100.0% 8,882,199.9 100.0% 10,172,485.1 100.0% 11,465,069.2 100.0%
52
ANNEX 1
ANNEX 2: SIERRA LEONE PUBLIC INVESTMENT PROGRAMME BY THE BIG FIVE PRIORITIES
In thousands of Leones
FY2023 Estimates FY 2024 Budget FY 2025 Indicative FY 2026 Indicative FY 2027 Indicative FY 2028 Indicative
% of Total % of Total % of Total % of Total % of Total
MDA Code BIG FIVE CLUSTERS /Ministry, Department and Agency (MDAs) Status Domestic Domestic Domestic Domestic Domestic Domestic
Cap Exp Cap Exp Cap Exp Cap Exp Cap Exp
GRAND TOTAL 2,065,613 2,263,109 100% 2,806,485 100% 2,972,886 100% 3,585,612 100% 3,685,036 100%
Cluster One: Feed Salone 80,200 878,127 39% 1,088,968 39% 1,153,534 39% 1,391,283 39% 1,429,861 39%
401 Ministry of Agriculture and Food Security 70,200 865,230 38% 1,072,973 38% 1,136,592 38% 1,370,849 38% 1,408,860 38%
1 Smallholder Commercialisation and Agribusiness Development Project (SCADeP) Ongoing 950 1,225 0% 1,519 0% 1,610 0% 1,941 0% 1,995 0%
2 Palm Oil Production Project in Sierra Leone in the Framework of Capacity Building (POPSLCB) Ongoing 1,850 22,386 1% 27,761 1% 29,407 1% 35,468 1% 36,451 1%
3 Rural Finance and Community Improvement Project Phase 11 Ongoing 950 21,225 1% 26,321 1% 27,882 1% 33,629 1% 34,561 1%
4 Agriculture Value Chain Development Ongoing 950 16,225 1% 20,121 1% 21,314 1% 25,707 1% 26,420 1%
5 Regional Rice Value Chain Development Ongoing 950 6,225 0% 7,720 0% 8,178 0% 9,863 0% 10,137 0%
6 Sierra Leone Agribusiness and Rice Value Chain Support Ongoing 950 1,225 0% 1,519 0% 1,610 0% 1,941 0% 1,995 0%
7 Support to Chiefdom Youth Farms Ongoing 3,600 119,332 5% 147,984 5% 156,758 5% 189,067 5% 194,309 5%
8 Livestock Development Project Ongoing - - 0% - 0% - 0% - 0% - 0%
9 Tree Crops Development Project Ongoing - - 0% - 0% - 0% - 0% - 0%
10 Onion Production Project Ongoing - 0% - 0% - 0% - 0% - 0%
11 Capacity Building and Support to Agricultural Development Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
12 Input System: E-Vouchers for Rice Production (Seeds, Fertilizers and Tractor Services) Ongoing 55,000 670,937 30% 832,030 30% 881,362 30% 1,063,015 30% 1,092,491 30%
402 Ministry of Fisheries and Marine Resources (MoFMR) 10,000 12,898 1% 15,994 1% 16,943 1% 20,435 1% 21,001 1%
1 Construction of Fish Harbour Ongoing - - 0% - 0% - 0% - 0% - 0%
2 Rehabilitation and Development of Fishing Infrastructure Ongoing - - 0% - 0% - 0% - 0% - 0%
3 Support to Artisanal Fisheries Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
4 Support to Women in Fishery Ongoing - - 0% - 0% - 0% - 0% - 0%
5 Strengthening Inland Fisheries and Aquaculture Production Ongoing - - 0% - 0% - 0% - 0% - 0%
6 Fish Stock Assessment , Policy and Management Planning Ongoing - - 0% - 0% - 0% - 0% - 0%
7 Enhancing Monitoring Control and Surveillance Systems Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
8 Improving Quality and Safety Standards for Fishery Products Ongoing - - 0% - 0% - 0% - 0% - 0%
9 Institutional Capacity Building Ongoing - - 0% - 0% - 0% - 0% - 0%
0% 0% 0% 0% 0%
Cluster Two: Human Capital Development 638,688 742,406 33% 920,659 33% 975,246 33% 1,176,249 33% 1,208,864 33%
301 Ministry of Basic and Secondary Education (MoBSE) 486,668 552,786 24% 685,510 24% 726,155 24% 875,820 24% 900,105 24%
1 Focused Resources on Equity and Excellence (FREE) Ongoing 2,800 3,611 0% 4,478 0% 4,744 0% 5,722 0% 5,880 0%
2 Education Sector Project (Four Government Schools) Ongoing 2,850 3,676 0% 4,558 0% 4,829 0% 5,824 0% 5,985 0%
53
3 Free Quality School Education Programme Ongoing 468,018 528,732 23% 655,681 23% 694,557 23% 837,709 23% 860,937 23%
o/w Teaching and Learning Materials Ongoing 14,658 18,905 1% 23,444 1% 24,834 1% 29,953 1% 30,783 1%
School Fee Subsidies Ongoing 92,860 119,767 5% 148,523 5% 157,329 5% 189,756 5% 195,017 5%
School Feeding Programme Ongoing 14% 14% 14% 14%
ANNEX 2
299,000 310,740 14% 385,349 408,197 492,328 505,980

Examination Fees for WASSCE Ongoing 48,400 62,424 3% 77,412 3% 82,002 3% 98,903 3% 101,646 3%
Diet for Boarding Home Schools Ongoing 13,100 16,896 1% 20,953 1% 22,195 1% 26,769 1% 27,512 1%
4 Capacity Building for Junior and Senior Secondary Schools Ongoing 3,000 3,869 0% 4,798 0% 5,083 0% 6,130 0% 6,300 0%
5 Welfare and Hygiene Packages for School Going Girls Ongoing 10,000 12,898 1% 15,994 1% 16,943 1% 20,435 1% 21,001 1%
300 Ministry of Tertiary and Higher Education (MoTHE) 42,200 54,428 2% 67,496 2% 71,498 2% 86,234 2% 88,625 2%
1 Education Sector Project (Bunumbu and Milton Margai) Ongoing 3,700 4,772 0% 5,918 0% 6,269 0% 7,561 0% 7,770 0%
2 Construction of University of Science and Technology (UST) in Kono Ongoing 8,500 10,963 0% 13,595 0% 14,401 0% 17,369 0% 17,851 0%
3 Clearance of Grants-In-Aid Arrears to Tertiary Institutions Ongoing 30,000 38,693 2% 47,983 2% 50,828 2% 61,304 2% 63,004 2%
11 Feasibility Study for the Construction of 6 Teacher Training Colleges Ongoing - - 0% - 0% - 0% - 0% - 0%
12 Feasibility Study for the Construction of the University of the East Ongoing - - 0% - 0% - 0% - 0% - 0%
304 Ministry of Health and Sanitation (MoHS) 88,620 114,298 5% 141,741 5% 150,146 5% 181,091 5% 186,113 5%
1 Global Fund ATM (HIV/Aids/Tuberculosis/Malaria) Ongoing 4,435 5,720 0% 7,093 0% 7,514 0% 9,063 0% 9,314 0%
2 Strengthening COVID-19 Response and Essential Health Services Programme Ongoing - - 0% - 0% - 0% - 0% - 0%
3 Sierra Leone COVID-19 Emergency Preparedness and Response Project Ongoing - - 0% - 0% - 0% - 0% - 0%
4 Primary Health Care Support Project Ongoing - - 0% - 0% - 0% - 0% - 0%
5 Reducing Maternal, Neonatal and Child Mortality and Mobidity in Sierra Leone Ongoing - - 0% - 0% - 0% - 0% - 0%
6 Strengthening Three (3) Tertiary Hospitals in Freetown Ongoing - - 0% - 0% - 0% - 0% - 0%
7 GAVI Health System Strengthening Support Project Ongoing 2,500 3,224 0% 3,999 0% 4,236 0% 5,109 0% 5,250 0%
8 Regional Disease Surveillance System Enhancement Project Ongoing - - 0% - 0% - 0% - 0% - 0%
9 Sector Wide Health Systems Strengthening Project Ongoing 3,000 3,869 0% 4,798 0% 5,083 0% 6,130 0% 6,300 0%
10 Health Systems Strengthening Project (Save the Mother to Child Project) Ongoing - - 0% - 0% - 0% - 0% - 0%
11 Construction of National Warehouse at Kerry Town Ongoing 4,000 5,159 0% 6,398 0% 6,777 0% 8,174 0% 8,400 0%
12 Construction of Cancer and Diagnostic Medical Centre Ongoing 40,000 51,590 2% 63,977 2% 67,771 2% 81,738 2% 84,005 2%
13 Rehabilitation, Expansion and Equipment of District Hospitals Ongoing 14,470 18,663 1% 23,144 1% 24,516 1% 29,569 1% 30,389 1%
14 Establishment of National Public Health Agency Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
15 Procurement of Reproductive Health Commodities Ongoing 215 277 0% 344 0% 364 0% 439 0% 452 0%
16 Support to National Emergency Medical Services (NEMS) - Ambulance Services Ongoing 18,000 23,216 1% 28,790 1% 30,497 1% 36,782 1% 37,802 1%
308 National Commission for Social Action (NaCSA) 21,000 20,636 1% 25,591 1% 27,108 1% 32,695 1% 33,602 1%
1 Sierra Leone Commmunity Driven Development Project (SLCDD) 2 Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
2 Sierra Leone Social Safety Net Project Ongoing 8,000 3,869 0% 4,798 0% 5,083 0% 6,130 0% 6,300 0%
3 Rehabilitation/Construction of Community Facilities (incl. Court Barrays) Ongoing 8,000 10,318 0% 12,795 0% 13,554 0% 16,348 0% 16,801 0%
306 Ministry of Lands, Country Planning and the Environment MoLCP&E) 200 258 0% 320 0% 339 0% 409 0% 420 0%
1 National Land Policy and Legal Reform Project Ongoing 200 258 0% 320 0% 339 0% 409 0% 420 0%
0% 0% 0% 0% 0%
Cluster Three: Youth Empowerment for Employment, Sports, and Migration 26,000 33,534 1% 41,585 1% 44,051 1% 53,130 1% 54,603 1%
310 Ministry of Youth Affairs (MoYA) 3,000 3,869 0% 4,798 0% 5,083 0% 6,130 0% 6,300 0%
1 Youth Economic Empowerment Fund Ongoing - - 0% - 0% - 0% - 0% - 0%
2 Social Mobilisation for the Establishment of Chiefdom Youth Farms Ongoing - - 0% - 0% - 0% - 0% - 0%
3 Support to Youth in Agro-processing Ongoing - - 0% - 0% - 0% - 0% - 0%
4 Support to Youth in Fisheries Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
5 Support to Youth in Car Wash Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
6 Adolescence Sexual Reproductive Health Programme for Youth Ongoing - - 0% - 0% - 0% - 0% - 0%
310 National Youth Commission 1,500 1,935 0% 2,399 0% 2,541 0% 3,065 0% 3,150 0%
1 Youth Entrepreneurship and Employment Project Ongoing 1,500 1,935 0% 2,399 0% 2,541 0% 3,065 0% 3,150 0%
313 National Youth Services 1,500 1,935 0% 2,399 0% 2,541 0% 3,065 0% 3,150 0%
1 Graduate Service Programme Ongoing 1,500 1,935 0% 2,399 0% 2,541 0% 3,065 0% 3,150 0%
405 National Tourist Board (NTB) 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
1 Sustainable Tourism Development and Promotion Project (STDPP) Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
2 Adapting Climate Change Induced Coastal Risk Management ongoing - - 0% - 0% - 0% - 0% - 0%
405 Monument and Relics Commission (MRC) 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
1 Comprehensive Preservation and Development of Bunce Island Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
2 Development of the Physical Infrastructure of the Cultural Heritage Sector Ongoing - - 0% - 0% - 0% - 0% - 0%
3 Construction of an Ethnographic Museum and Heritage Resource Centre in Bonthe Ongoing - - 0% - 0% - 0% - 0% - 0%
4 Restoration of Old FBC Phase II Ongoing - - 0% - 0% - 0% - 0% - 0%
409 Ministry of Trade and Industry 18,000 23,216 1% 28,790 1% 30,497 1% 36,782 1% 37,802 1%
Small and Medium Enterprises Development Agency 18,000 23,216 1% 28,790 1% 30,497 1% 36,782 1% 37,802 1%
1 Support to Micro-Small and Medium Enterprises (Munafa Fund) Ongoing 18,000 23,216 1% 28,790 1% 30,497 1% 36,782 1% 37,802 1%
0% 0% 0% 0% 0%
Cluster Four: Revamping the Public Service Achitecture and Governance 53,852 63,456 3% 78,692 3% 83,358 3% 100,539 3% 103,326 3%
106 Office of the Chief Minister 2,000 - 0% - 0% - 0% - 0% - 0%
National Programme for Civil Engagement, Peace Building and Community Cohesion New 2,000 - 0% - 0% - 0% - 0% - 0%
128 Ministry of Foreign Affairs and International Cooperation (MoFAIC) 3,500 4,514 0% 5,598 0% 5,930 0% 7,152 0% 7,350 0%
1 Rehabilitation of Foreign Missions 3,500 4,514 0% 5,598 0% 5,930 0% 7,152 0% 7,350 0%
124 Office of the Administrator and Registrar General (OARG) 300 387 0% 480 0% 508 0% 613 0% 630 0%
1 Development of a Record Management System Ongoing 300 387 0% 480 0% 508 0% 613 0% 630 0%
133 Ministry of Information and Communications (MoIC) 3,500 4,514 0% 5,598 0% 5,930 0% 7,152 0% 7,350 0%
1 National Fibre Optic Backbone Phase II Ongoing - - 0% - 0% - 0% - 0% - 0%
2 Support to SLBC Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
54
3 Government Outreach Programme Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
4 Operationalization and Expansion of eGovernment Platform Ongoing - - 0% - 0% - 0% - 0% - 0%
5 Support to Community Radio Stations Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
203 National Civil Registration Commission (NCRA) 4,000 7,738 0% 9,596 0% 10,165 0% 12,260 0% 12,600 0%
ANNEX 2
1 Rehabilitation of National Civil Registration Authority New Complex Ongoing 3,000 3,869 0% 4,798 0% 5,083 0% 6,130 0% 6,300 0%
2 Integrated Civil Registration and Vital Statistics and ID Management System Ongoing - 2,579 0% 3,198 0% 3,388 0% 4,086 0% 4,199 0%
o/w Exhibition and Update of the Civil Register Ongoing - - 0% - 0% - 0% - 0% - 0%
Printing and Distribution of ECOWAS/ICAO Compliant Multi-purpose ID Cards and other
Ongoing - 2,579 0% 3,198 0% 3,388 0% 4,086 0% 4,199 0%
Certificates
3 Rehabilitation of NCRA District Offices 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
206 Sierra Leone Police (SLP) 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
1 Rehabilitation and Construction of Police Stations and Facilities Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
2 Construction of New Police Stations Ongoing - - 0% - 0% - 0% - 0% - 0%
201 Ministry of Defence (MoD) 20,552 23,643 1% 29,320 1% 31,059 1% 37,460 1% 38,499 1%
1 Rehabilitation of Military Barracks and Facilities, Nationwide Ongoing 5,100 6,578 0% 8,157 0% 8,641 0% 10,422 0% 10,711 0%
2 Procurement of Military Hardware and Communication Sets Ongoing 10,452 11,543 1% 14,315 1% 15,164 1% 18,289 1% 18,796 1%
3 Construction of Military Barracks, Kambia Ongoing 5,000 5,522 0% 6,848 0% 7,254 0% 8,749 0% 8,992 0%
209 Central Intelligence and Security Unit (CISU) 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
1 Procurement of Specialized Surveillance Equipment Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
110 Anti Corruption Commission (ACC) 2,000 - 0% - 0% - 0% - 0% - 0%
1 Completion of Anti-Corruption Building Ongoing 2,000 - 0% - 0% - 0% - 0% - 0%
110 Sierra Leone Insurance Commisiion 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
1 Construction of SLICOM Building Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
121 Audit Service Sierra Leone (ASSL) 3,000 3,869 0% 4,798 0% 5,083 0% 6,130 0% 6,300 0%
1 Construction of ASSL Headquarters Ongoing 3,000 3,869 0% 4,798 0% 5,083 0% 6,130 0% 6,300 0%
123 Public Service Commission (PSC) 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
1 Construction of PSC Headquarter Building Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
207 Sierra Leone Correctional Services (SLCS) 3,000 3,313 0% 4,109 0% 4,352 0% 5,249 0% 5,395 0%
1 Rehabilitation of Correctional Centres and Facilities Ongoing 3,000 3,313 0% 4,109 0% 4,352 0% 5,249 0% 5,395 0%
2 Preparatory Work for the Relocation of Pademba Road Prison Ongoing - - 0% - 0% - 0% - 0% - 0%
134 Electoral Commission Sierra Leone (ECSL) 6,000 7,739 0% 9,597 0% 10,166 0% 12,261 0% 12,601 0%
1 Construction of District Offices Ongoing 6,000 7,739 0% 9,597 0% 10,166 0% 12,261 0% 12,601 0%
Cluster Five: Infrastructure and Economic Competitiveness 1,200,110 459,339 20% 569,627 20% 603,401 20% 727,765 20% 747,945 20%
406 Ministry of Energy (MoE) 190,861 96,216 4% 119,317 4% 126,392 4% 152,442 4% 156,669 4%
1 Energy Sector Utility Reform Project (ESURP) ongoing - - 0% - 0% - 0% - 0% - 0%
2 West African Power Pool Project (WAPP) Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
3 Rural Electrification Project - CLSG (Serving Communities along the Transmission Line) Ongoing 24,000 30,954 1% 38,386 1% 40,662 1% 49,043 1% 50,403 1%
4 Rehabilitation and Extension of Bo-Kenema Distribution System Ongoing 100,261 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
5 Supply and Installation of 225KV Double Circuit Transmission Line from Bumbuna II to Waterloo Ongoing - - 0% - 0% - 0% - 0% - 0%
6 Electrification of 7 (Seven) District Towns Ongoing 63,600 58,813 3% 72,934 3% 77,258 3% 93,182 3% 95,765 3%
7 Installation of Solar Street Lights Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
414 Ministry of Water Resources (MoWR) 26,000 33,534 1% 41,585 1% 44,051 1% 53,130 1% 54,603 1%
1 Lungi Water Supply Project Ongoing 26,000 33,534 1% 41,585 1% 44,051 1% 53,130 1% 54,603 1%
414 Sierra Leone Water Company (SALWACO) 79,500 76,741 3% 95,166 3% 100,809 3% 121,586 3% 124,957 3%
1 Three (3) Towns - Bo, Kenema and Makeni - Water Supply System Project Phase II Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
2 Rural Water Supply and Sanitation Project Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
3 Construction of 100 Solar Powered Boreholes Ongoing 4,000 5,159 0% 6,398 0% 6,777 0% 8,174 0% 8,400 0%
4 Four (4) Towns Water Supply Project (Mongor, Mattru, Njala and Daru) Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
5 Construction of 45 Industrial Boreholes (Urban Wash Supply) Ongoing 6,000 7,739 0% 9,597 0% 10,166 0% 12,261 0% 12,601 0%
6 Completion of Construction of Water Supply Facilities in Six (6) District Capitals Ongoing 60,000 51,590 2% 63,977 2% 67,771 2% 81,738 2% 84,005 2%
7 Construction of Water Supply System in Bonthe Municipal Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
414 Guma Valley Water Company (GVWC) 11,500 14,832 1% 18,393 1% 19,484 1% 23,500 1% 24,151 1%
1 Freetown WASH and Aquatic Revamping Project Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
2 Freetown Water Supply Rehabilitation Project ongoing - - 0% - 0% - 0% - 0% - 0%
3 Water Sector Reform Project Ongoing - - 0% - 0% - 0% - 0% - 0%
4 Freetown Emergency Recovery Project Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
5 Freetown Water Supply and Sanitation Master Plan Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
6 Extension of the Distribution Pipe Network by 20 kilometres Ongoing - - 0% - 0% - 0% - 0% - 0%
7 Emergency Water Supply Project in Western Area Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
8 Restoring Water Supply at IMAT and Hill Station Communities Ongoing 4,000 5,159 0% 6,398 0% 6,777 0% 8,174 0% 8,400 0%
404 Ministry of Transport and Aviation (MoTA) 96,000 123,817 5% 153,545 5% 162,649 5% 196,172 5% 201,612 5%
1 Integrated and Resilient Urban Mobility Project (IRUMP) Ongoing 4,000 5,159 0% 6,398 0% 6,777 0% 8,174 0% 8,400 0%
Procurement of Vehicles for Other Government Functionaries (Judiciary, ECSL, PPRC, Ministers
2 New 28,000 36,113 2% 44,784 2% 47,439 2% 57,217 2% 58,803 2%
and Deputies etc.)
3 Strengthening Chiefdom Governance Ongoing 68,000 87,703 4% 108,761 4% 115,210 4% 138,955 4% 142,808 4%
408 Ministry of Works and Public Assets (MoWPA) 45,000 9,028 0% 11,196 0% 11,860 0% 14,304 0% 14,701 0%
1 Rehabilitation of Existing Presidential Lodge Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
2 Rehabilitation of Government Administrative Buildings Ongoing 40,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
3 Rehabilitation of Government Residential Quarters Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
4 Demolition of Multi-Storey Building (former UN Building) at Siaka Steven Street Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
5 Construction of Districts Magistrates and High Courts Buildings Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
408 Sierra Leone Roads Authority (SLRA) 751,249 105,172 5% 130,424 5% 138,157 5% 166,632 5% 171,252 5%
1 Reconstruction of Bandajuma-Pujehun Road Ongoing 20,000 25,795 1% 31,989 1% 33,885 1% 40,869 1% 42,002 1%
55
2 Reconstruction of Pendembu - Kailahun Road Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
3 Reconstruction of Bandajuma - MRU Bridge Ongoing - - 0% - 0% - 0% - 0% - 0%
ANNEX 2
Reconstruction of Moyamba - Moyamba Junction and the 3 Bridges in Magbele, Mabang and
4 Ongoing - - 0% - 0% - 0% - 0% - 0%
Kpangbama
5 Completion of Hill Side By Pass Road Phase II Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
6 Completion of Tokeh-Lumely (Peninsular) Road Ongoing 4,000 5,159 0% 6,398 0% 6,777 0% 8,174 0% 8,400 0%
7 Rehabilitation of Limkokwing University - Regent Road Project Ongoing - - 0% - 0% - 0% - 0% - 0%
8 Reconstruction of Tikonko - Kpetema Road Ongoing - - 0% - 0% - 0% - 0% - 0%
9 Reconstruction of Kpetema - Mattru Jong Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
10 Completion of Bo - Tikonko Road Ongoing 2,000 2,580 0% 3,199 0% 3,389 0% 4,087 0% 4,200 0%
11 Completion of Targrin - Lungi - ConaKry Dee Road Ongoing 9,000 11,608 1% 14,395 1% 15,248 1% 18,391 1% 18,901 1%
12 Completion of Bandajuma-Pujehun-Gbondappi Ongoing - - 0% - 0% - 0% - 0% - 0%
13 Spots Improvement and Regravelling of Trunk Roads Ongoing 21,000 30,366 1% 37,657 1% 39,890 1% 48,111 1% 49,445 1%
14 Completion of Township Roads Ongoing 627,249 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
Reconstruction of Major Culverts (Mile 1 in Kabala, Kabala Krubula Road and Baiima Songa
15 Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
Culvert)
Construction of 400m Embarkment and 40m bridge and 2 No Relief Box Culverts along Molakika-
16 Ongoing - - 0% - 0% - 0% - 0% - 0%
Gbongboma Stretch in Bonthe Island
17 Rehabilitation and Reconstruction of Kenema - Zemmi Road Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
21 Moyamba - Sembehun - Shenge Road 25,000 - 0% - 0% - 0% - 0% - 0%
23 Kambia - Madina - Kunkuna - Konta - Guinea Border Roads 25,000 - 0% - 0% - 0% - 0% - 0%
Cluster Six: Empowering Women, Children, and Persons with Disability 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
319 Ministry of Gender and Children Affairs 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
1 Women's Economic Empowerment Fund Ongoing 1,000 1,290 0% 1,599 0% 1,694 0% 2,043 0% 2,100 0%
Cluster Seven: Environment, Climate Change and Disaster Management 12,000 15,477 1% 19,193 1% 20,331 1% 24,521 1% 25,201 1%
318 Ministry of Environment - - 0% - 0% - 0% - 0% - 0%
1 Institutional Capacity Building Ongoing - - 0% - 0% - 0% - 0% - 0%
2 Rehabilitation and Alternative Livelihood for Degraded Communities Ongoing - - 0% - 0% - 0% - 0% - 0%
318 Ministry of Environment (Forestry Division) 12,000 15,477 1% 19,193 1% 20,331 1% 24,521 1% 25,201 1%
1 National Tree Planting Ongoing 12,000 15,477 1% 19,193 1% 20,331 1% 24,521 1% 25,201 1%
Cluster Eight: Means of Implementation 53,763 69,480 3% 86,162 3% 91,271 3% 110,082 3% 113,134 3%
127 Ministry of Planning and Economic Development (MoPED) 3,000 3,777 0% 4,683 0% 4,961 0% 5,984 0% 6,149 0%
1 Strengthening District and National Level Planning Ongoing - - 0% - 0% - 0% - 0% - 0%
2 Project Preparatory Facility (PPF) Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
3 Strengthening District Development Coordination Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
4 Preparatory Work for the Successor to the Medium Term National Development Plan Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
Development of Web-based Project Mapping and Information Sysytem for the Public Investment
5 Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
Programme (PIP) and NGO Activities
6 Support to the Establsihment of a National Induced Resettlement Secretariat Ongoing 500 645 0% 800 0% 847 0% 1,022 0% 1,050 0%
7 Piloting and Integrating the WAN Fambul National Framework in the Implementation of the MTNDP Ongoing 500 552 0% 685 0% 725 0% 875 0% 899 0%
138 Statistics Sierra Leone (Stat SL) 1,500 1,935 0% 2,399 0% 2,541 0% 3,065 0% 3,150 0%
1 Surveys Ongoing 1,500 1,935 0% 2,399 0% 2,541 0% 3,065 0% 3,150 0%
2 Mid Term Population and Housing Census Ongoing - - 0% - 0% - 0% - 0% - 0%
129 Ministry of Finance (MoF) 11,900 15,348 1% 19,033 1% 20,162 1% 24,317 1% 24,991 1%
1 Sierra Leone Economic Diversification Project Ongoing 200 258 0% 320 0% 339 0% 409 0% 420 0%
2 Financial Inclusion Project Ongoing - - 0% - 0% - 0% - 0% - 0%
3 Support to Public Financial Management Unit (PFMU) Ongoing 6,000 7,739 0% 9,597 0% 10,166 0% 12,261 0% 12,601 0%
4 Sierra Leone Urban Resilient Project Ongoing 200 258 0% 320 0% 339 0% 409 0% 420 0%
5 Accountable Governance for Basic Service Delivery Ongoing 1,800 2,322 0% 2,879 0% 3,050 0% 3,678 0% 3,780 0%
6 Support to Medium Term Expenditure Framework (MTEF) Ongoing 3,700 4,772 0% 5,918 0% 6,269 0% 7,561 0% 7,770 0%
701 Transfers to Local Councils 37,363 48,420 2% 60,046 2% 63,606 2% 76,716 2% 78,843 2%
1 Local Government Develoment Grants Ongoing 5,000 6,449 0% 7,997 0% 8,471 0% 10,217 0% 10,501 0%
2 Examination Fees for NPSE Ongoing 11,200 14,445 1% 17,914 1% 18,976 1% 22,887 1% 23,521 1%
3 Examination Fees for BECE Ongoing 21,163 27,526 1% 34,135 1% 36,159 1% 43,612 1% 44,821 1%
GRAND TOTAL 2,065,613 2,263,109 100% 2,806,485 100% 2,972,886 100% 3,585,612 100% 3,685,036 100%
56
ANNEX 2
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GOVERNMENT OF SIERRA LEONE

FISCAL STRATEGY STATEMENT (FSS)

In fulfilment of Sections 21 & 23 of Public Financial

1. GOVERNMENT’S FISCAL OBJECTIVES, 2024-2028

(i) Increase domestic revenue to 20 percent of GDP by 2028;

(ii) Contain Government expenditures at average of 23 percent of GDP by 2025. This

2. RECENT ECONOMIC TRENDS

2.2. Domestic Macroeconomic Economic Developments, 2021-2022 and First Half of

Figure 1: Chart showing the GDP Growth Rate, 2011-2022

GDP Growth Rate , 2011-2022

Figure 2: Chart showing the Trend in Inflation, 2017-2022

Figure 3: Chart showing trend of Public Debt between 2017-2022

2017 2018 2019 2020 2021 2022

2.3. Comparison between Previous Macroeconomic Forecasts and Actual Outturns,

2.3.1 Real Gross Domestic Product (GDP)

adverse external development underpinned by further disruption of global supply chains,

2.3.3 Domestic Revenue, Expenditures and Fiscal Deficit

2.3.4 Public Debt

Comparison between Forecast and Outturns

Rea l GDP Growth Infl ation

3. MEDIUM-TERM MACROECONOMIC FORECASTS, 2024-2028

Table 1. Medium-Term Sectoral Growth Rates: 2023-2028

Table 2. Medium-Term Macroeconomic Forecasts: 2023-2028

Table 3: Medium-Term Macroeconomic Projections: 2024-2028

Figure 5: Chart Showing the Medium Term Macroeconomic Projections 2023-2028

Medium - Term Macroeconomic Projections

Rea l GDP Export Growth Import Growth Infl ation

Box 1. 1: Assumptions underpinning the Medium-term Macroeconomic Forecasts

4. FISCAL POLICY AND STRATEGY

4.1 Fiscal Developments, 2018-2022 and First Half of 2023

Figure 6: Chart showing trends in Domestic Revenue and Expenditures: 2017-2022

Domestic Revenue and Expenditure Trends

Figure 7: Chart showing trends in Budget Deficit: 2017-2022

4.2 Progress in Achieving Fiscal Objectives During 2018-2022

4.3 Medium-Term Fiscal Forecasts, 2024-2028

Table 4: Domestic Revenue Projections (millions NLe)

Prel. Proj. Proj. Proj. Proj. Proj. Proj.

Table 5: Domestic Revenue Projections (% of GDP)

Prel. Proj. Proj. Proj. Proj. Proj. Proj.

Table 6: Local Council Revenue Projections: FY2024-2028 (NLe)

Other Non-Tax Revenue 3,396,856 3,882,121 4,270,333 4,611,960 4,842,558

Total Own Source 190,221,665 217,396,189 239,135,808 258,266,673 271,180,006

Box 2: Assumptions Underlying Domestic Revenue Projections

4.3.3 Government Expenditure Projections

Table 7: Government Expenditure Projections (Million NLe)

2022 2023 2024 2025 2026 2027 2028

Table 8: Government Expenditure Projections (% of GDP)

Current expenditures 20.4 18.1 17.7 17.3 17.1 16.4 15.9

Figure 8: Chart showing the Medium Term Fiscal Projections: 2024-2028

Fiscal Projections 2024-2028

Revenue (excluding grants)4/ Tota l expenditure a nd net l ending Overa l l balance

4.4. Policy Measures for Achieving the Medium-Term Fiscal Objectives

Medium-Term Revenue Mobilisation Measures

The MTRS tax policy measures include, among others:

(v) Adopt the full pass-through formula for petroleum pricing

For domestic taxes, the measures include:

For Customs administration,

For Non-Tax Revenues,

(iii) Modernising business operations, enhance capacity and productivity through