Domestic Revenues and Grants

The effective implementation of the National Development Plan largely depends on a robust revenue mobilisation drive. The Medium-Term Revenue Strategy (MTRS) 2023 – 2027, is our blueprint for domestic revenue mobilisation. Most of the revenue measures contained in the MTRS are being implemented through the Finance Acts 2023 and 2024. Government’s focus for 2025 is to strengthen tax compliance and administration. On the basis of the tax policy and administrative measures to be implemented and the expected recovery in economic activities, domestic revenue for FY2025 is projected at NLe18.9 billion (9.8 percent of GDP).

• Income taxes will contribute NLe6.7 billion.
• Goods and services tax (GST), NLe4.3 billion.
• Customs and excise duties, NLe4.1 billion.
• Mining royalties and licences, NLe1.1 billion.
• Fisheries royalties and licences, NLe171.7 million.
• Parastatal dividends, NLe396.0 million.
• Revenues from other Government departments, including Treasury Single Account (TSA) Agencies and royalty on timber exports will amount to NLe1.8 billion.
• Road user charges and vehicle licences will contribute NLe249.1 million to domestic revenue in 2025.

Total grants to be disbursed by development partners are projected at NLe9.0 billion (4.6 percent of GDP), of which, budget support from the World Bank and the European Union will amount to NLe2.1 billion. Other grants from several development partners will amount to NLe6.9 billion; of which, project grants will amount to NLe2.7 billion and off-budget grants, NLe4.2 billion. Total revenue and grants will, therefore, amount to NLe27.9 billion (14.4 percent of GDP).

Expenditure Priorities and Budget Allocations

The priorities of Government as articulated in the National Development Plan are:

• Feed Salone
• Human Capital Development
• Youth Employment Scheme
• Infrastructure, Technology and Innovation; and
• Transforming the Public Service Architecture.

Also referred to as the BIG FIVE GAME CHANGERS given their potential to transform our economy. Consequently, the composition and allocation of Government expenditures, both recurrent and capital, for the 2025 fiscal year are geared towards ensuring the implementation of the National Development Plan in order to improve the wellbeing of Sierra Leoneans.

Total expenditure and net lending for the 2025 fiscal year is projected at NLe35.3 billion (18.3 percent of GDP). Of the total expenditure, recurrent expenditures are projected at NLe22.1 billion (11.4 percent of GDP) and capital e expenditures and net lending are projected at NLe13.0 billion (6.7 percent of GDP), of which, capital expenditure is NLe11.7 billion and capital transfers for the recapitalisation of the Bank of Sierra Leone is NLe1.3 billion.

Foreign-financed capital expenditure is projected at NLe9.5 billion (4.9 percent of GDP) and domestic-funded capital expenditures at NLe2.2 billion (1.1 percent of GDP). Wages and Salaries 109. Mr. Speaker, Honourable Members, the Government Wage Bill is projected to increase to NLe7.6 billion (3.9 percent of GDP) in 2025 from NLe6.5 billion (3.9 percent of GDP) in 2024. The increase in the nominal wage bill covers the following: i. ii. iii. iv. Government’s commitment to a 45 percent increase in salaries for teachers which started in 2023 remains intact. Teachers will, therefore, receive the third and final tranche of 15 percent increase in January 2025.

2025 Fiscal Year Budget: The Numbers

• Government will also recruit 2,000 additional teachers and reassess and promote 3,043 teachers, effective September 2025.
• Recruitment of 3,000 health workers effective July 2025 and a 15 percent salary increase for health workers effective April 2025.
• Recruitment of additional 1,000 civil servants; Award a 30 percent salary increase effective April 2025 for civil servants in Grades 8 to 14 who had not received any pay raise since 2018.
• Recruitment of 500 staff by tertiary educational institutions effective September 2025 as follows: Universities - 300, Colleges-100 and Technical and Vocational Institutions -100 staff.
• A 15 percent salary increase is awarded to staff of tertiary education institutions effective April 2025;
• Recruitment of 600 military personnel effective July 2025.
• The military will be awarded a 15 percent salary increase effective April 2025.
• In addition, 500 military health workers will be recruited effective March 2025.
• All military health workers will be awarded a 15 percent salary increase effective April 2025, as in the case of the other health workers;
• Recruitment of 1,000 new employees for the Sierra Leone Police effective July 2025.
• A 15 percent salary increase will be awarded to the Sierra Leone Police effective April 2025;
• Recruitment of 1,000 new employees by the Sierra Leone Correctional Services, effective July 2025.
• A 15 percent salary increase will be awarded to the Sierra Leone Correctional Services effective April 2025.
• Recruitment of 200 new employees by the National Fire Force effective July 2025.
• A 15 percent salary increase will be awarded to the National Fire Force effective April 2025.
• A cost-of-living adjustment of 5 percent is made for Foreign Missions and for the Judiciary effective April 2025.
• Government pensioners will receive a 25 percent increase in their pensions effective April 2025.

This is limited to Government employees who retired before the establishment of the National Social Security and Insurance Trust (NASSIT) and Political Pensioners; Core staff of Local Councils are awarded a 30 percent salary increase effective April 2025; and Limit the recruitment of consultants to 50 personnel in FY2025.

Debt Service Payments
Total interest payments are projected at NLe7.4 billion in 2025 (3.8 percent of GDP). Of this, interest payments on domestic debt will amount to NLe7.1 billion, and on external debt, NLe319.0 million. The principal repayments on external debts (amortisation) will amount to NLe1.9 billion.

Non-Interest Recurrent and Capital Expenditures
The allocations of recurrent and capital expenditures reflect the priorities defined in the Medium-Term National Development Plan (MTNDP), 2024-2030. Feed Salone: Improving Agricultural Productivity for Food Self-Sufficiency.

Agriculture and Food Security
Government is allocating NLe1.3 billion to the agricultural sector accounting for 8 percent of primary expenditures. Of this amount, NLe747.2 million is allocated from the domestic capital budget to the Feed Salone Initiative, of which, NLe616.0 million is provided for development and promotion of two agro-ecological zones (Tormabum and Gbondappi in the South and Mambolo and Kychum in the North-West).

This amount will support road improvements, generation and transmission of electricity and construction of water supply and irrigation systems in the zones. In addition, Government is allocating NLe135.8 million for the reconstruction and rehabilitation of roads leading to agricultural areas. Government is also allocating NLe20.0 million for the provision of agricultural inputs for rice and poultry feed production through the e-voucher system.

Government is also allocating NLe95.3 million from the recurrent budget to support the various departments in the Ministry of Agriculture and Food Security (MAFS). In addition, NLe17.0 million is provided to the Sierra Leone Agricultural Research Institute (SLARI). Transfers to Local Councils for devolved functions in the agricultural and fishing sectors will amount to NLe52.0 million. The sum of NLe125.4 million represents the wage bill of the MAFS and allied agencies.

Development partners, including the World Bank, AfDB, IsDB, IFAD, BADEA and Indian EXIM Bank will disburse NLe2.3 billion to support the implementation of various projects in the agricultural sector. (b) 115. Fisheries and Marine Resources Mr. Speaker, Honourable Members, the sum of NLe23.8 million is allocated from the recurrent budget to the Ministry of Fisheries and Marine Resources, in support of artisanal fishing and fish export activities. The sum of NLe10.3 million represents the wage bill of the Ministry of Fisheries and Marine Resources. 116. An amount of NLe26.0 million is allocated from the domestic capital budget for the rehabilitation and development of fishing infrastructure and to promote women empowerment in the fisheries sector.

Human Capital Development
The government is sustaining its commitment to spend at least 20 percent of primary expenditures on education. To this end, Government is allocating an amount of NLe3.4 billion to the education sector, representing 20 percent of total primary expenditures. The sum of NLe1.1 billion is allocated from the recurrent budget to the Ministry of Basic and Senior Secondary Education (MBSSE) to support the Free Quality School Education (FQSE) programme. Of this, an amount of NLe870.0 million is allocated to the School Feeding Programme; NLe80.0 million for school fees subsidies for junior secondary schools; NLe45.0 million for examination fees for WASSCE; and NLe25.0 million for the procurement and distribution of sanitary pads to school-going girls. 118. Transfers to Local Councils for basic education services will amount to NLe161.4 million covering the payment of examination fees for NPSE and BECE, the procurement and distribution of teaching and learning materials, and school fee subsidies for primary schools. The Teaching Service Commission is allocated NLe5.0 million.

The Ministry of Technical and Higher Education has been allocated the sum of NLe191.0 million from the recurrent budget, including NLe137.0 million as grants to tertiary educational institutions, NLe16.3 million as Grants-in-Aid, and NLe14.3 million for technical and vocational education.

An amount of NLe10.3 million is allocated to the Students Loan Scheme Secretariat. 120. The wage bill for the education sector is NLe1.9 billion, of which, NLe1.4 billion covers salaries of teachers and staff of the Ministry of Basic and Senior Secondary Education, and NLe464.4 million for staff of tertiary educational institutions. 121. Mr. Speaker, Honourable Members, the sum of NLe38.9 million is allocated from the domestic capital budget to the education sector, of which, NLe28.6 million is counterpart contribution to donor-funded projects, and NLe10.3 million for the construction and equipping of a National Archive and Record Centre and for the transformation of Government Technical Institutes into Community Technical Colleges.

Development partners, including the World Bank, IsDB, OFID, BADEA, Saudi Fund, and EBID will disburse NLe308.1 million for the construction of the University of Science and Technology in Kono District; rehabilitation of Government schools; Milton Margai Technical University and Bunumbu Teachers College; as well as to provide digital connectivity in schools.

Health
Government is allocating a total of NLe1.5 billion to the health sector, accounting for 9 percent of total primary expenditures. Of this, an amount of NLe131.7 million is allocated from the recurrent budget to the Ministry of Health. This includes NLe41.2 million for tertiary hospitals and ambulance services, NLe16.1 million for primary health services; and NLe10.9 million for reproductive and child health services. The sum of NLe64.4 million is allocated to the National Medical Supplies Agency, of which, NLe42.2 million is for the procurement of free health care drugs. An amount of NLe9.0 million is also allocated to the National Public Health Agency and NLe6.5 million to the Health Service Commission. Transfers to Local Councils for devolved health functions will amount to NLe61.8 million. The sum of NLe1.0 billion is allocated as wages and salaries for health workers and NLe56.2 million for the salaries of the staff of allied health agencies.

From the domestic capital budget, Government is allocating the sum of NLe30.0 million to the Ministry of Health, of which, NLe20.0 million is for the construction of a Cancer and Diagnostic Medical Centre and NLe10.0 million for the Rehabilitation and Expansion of District Hospitals.

Development partners, including the World Bank, IsDB, BADEA, Kuwaiti Fund and Global Fund will disburse NLe388.5 million to support the implementation of various projects in the health sector, including the construction of Pharma Grade Warehouse. Government is also providing NLe72.0 million as counterpart contribution for donor-funded projects in the health sector.

Social Protection
As a demonstration of Government’s commitment in continuing to provide social safety nets, the domestic capital expenditure allocation to NaCSA has been significantly augmented. The sum of NLe45.2 million is allocated for the implementation of the Community Driven Development Project and Rapid Community Development Initiative (RACODI). In addition, the sum of NLe8.6 million is allocated from the recurrent budget to NaCSA. Government is allocating the sum of NLe24.0 million to NaCSA for wages and salaries. The World Bank and IsDB will disburse NLe244.3 million to NaCSA to scale up the implementation of the Productive Social Safety Nets and Youth Empowerment (PSSNYE) Project and the Sierra Leone Community Development Driven Project.

In addition, the sum of NLe7.0 million is allocated from the domestic capital budget to NaCSA as counterpart contribution for the implementation of these donor-funded projects. The Ministry of Social Welfare is allocated the sum of NLe23.0 million from the recurrent budget, of which, NLe13.0 million is for social safety net programmes, including diets for approved schools and programmes for the disabled.

To ensure our institutions provide support for our compatriots affected by drug abuse, the sum of NLe2.5 million is allocated from the domestic capital budget for the establishment of rehabilitation centres for drug addicts. The Ministry of Employment, Labour and Social Security is allocated NLe15.0 million from the recurrent budget, of which, NLe4.0 million is for social safety nets for the aged.

The Ministry of Gender and Children’s Affairs is allocated NLe6.9 million, of which, NLe3.7 million is for gender and children’s programmes and NLe3.1 million for the Children’s Commission. In addition, NLe1.0 million is allocated for the establishment of the Women Economic and Development Fund and reintegration of street children. Infrastructure and Technology

The sum of NLe669.4 million is provided from the domestic capital budget to support the implementation of infrastructure and technology projects.

Roads
An amount of NLe345.7 million is allocated to the Sierra Leone Roads Authority (SLRA) from the domestic capital budget for the ongoing construction, rehabilitation and completion of trunk and township roads and bridges.

The allocation makes provision for the completion of the following trunk roads and bridges: Kabala-Falaba-Limbaya Junction to Guinea Border Road; Targrin-Lungi-Konakridee Road; Bandajuma Pujehun-Gbondappi Road; Taiama-Njala Road; Moyamba-Sembehun-Shenge Road; Kambia-Madina-Kukuna-Konta-Guinea Border Road; and Jojoma; Geoma; Yifin; Banekeh; and Walihun bridges.

Furthermore, NLe15.0 million is allocated for spot improvement of major highways and NLe35.9 million for the re-gravelling of selected trunk roads, including Mano Junction-Tongo-Kangama-Bumpeh Road, Sumbuya Junction Briamaia-Kukuna Road and the Mobai Junction-Baiwala-Bomaru Road. 135. An allocation of NLe133.9 million is made for the completion of city and township roads in Freetown, Bo, Kenema, Moyamba, Pujehun, Mattru Jong, Bonthe,Waterloo, Tihun, Makeni, Kono and Kambia. 136. The World Bank, AfDB, BADEA and the Kuwaiti Fund will also disburse NLe497.3 million to support the ongoing construction and reconstruction of several roads and bridges: Tokeh-Lumley Road; Buedu-Koindu Road; Tikonko 37 Kpetema-Mattru-Jong Road; Kailahun-Buedu Road; and Moselelo, Komrabai, Sumbuya and Batkanu Bridges.

In addition, Government is providing NLe37.1 million from the domestic capital budget as counterpart contribution towards the implementation of these roads and bridges projects. Pipeline road projects for which Government is mobilising funding are Kpetema-Serabu Road, Kambia-Tompari-Kamakwie Road; Bauya-Bendu Cha Road; Kenema-Zimmi Road; and the Mano Junction-Tongo-Kangama-Bumpeh Road.

Government is also collaborating with the private sector under innovative financing arrangements such as Public Private Partnerships to finance the construction of the following roads: Mabang-Moyamba-Gbangbatoke Junction Road; Moyamba-Sembehun-Shenge Road; and Sefadu-Kamiandor-Conakry Road.

Budget Round-Up

Energy Sector To Gulp NLe1.4bn
A consortium of World Bank, the African Development Bank (AfDB) and the Indian Export -Import (EXIM) Bank is disbursing a total of NLe1.4 billion for the implementation of several projects in the energy sector in the next fiscal year.

Already earmarked projects include the Regional Emergency Solar Power Intervention Project (RESPITE). The EU is supporting improvement in energy access under the Transformational Energy Access for Sierra Leone Project. The Sierra Leone government is providing NLe4.2 million as counterpart contribution towards the implementation of these projects. In addition, Government is also providing NLe5.9 million for administrative expenses and NLe9.8 million for wages and salaries to the Ministry of Energy. The government is allocating a total of NLe127.3 million to the energy sector in fiscal 2025. This is being provided from the 2025 domestic capital budget Of this, NLe50 million is to be expended on the completion of the 7 districts electricity projects in the country.

A total of NLe26 million is earmarked for the rehabilitation of the Goma-Dodo Hydro Dam and NLe 26 million for the extension of transmission and distribution lines to mining companies. A total of NLe25.5 million is for enhancing energy generation and transmission.

Furthermore, Government is providing NLe875.0 million as subsidies to EDSA for the payment of outstanding invoices to the Independent Power Producers (IPPs), including Karpower, CI-Energy, and TRANSCO-CLSG.

Water
A total sum of NLe1.8 million is allocated from the domestic capital budget to the Ministry of Water Resources and Sanitation for the construction of water quality laboratories in the country next fiscal year.

The Sierra Leone Water Company (SALWACO) has a total of NLe89 million allocated to it; of which, NLe20.0 million is for the completion of the construction of water supply facilities in six district capitals; NLe15.0 million for the construction of gravity flow schemes in Kenema; and NLe15.0 million for the construction of water supply system in the Bonthe Municipality.

The Guma Valley Water Company (GVWC) is also allocated NLe8.5 million for the construction of 45 boreholes and the restoration of water supply at the IMATT and Hill Station communities.

From the recurrent budget, the sum of NLe19.5 million is provided to the Ministry of Water Resources and Sanitation, of which, NLe4.3 million is to the Water Resources Management Agency and NLe10.0 million to SALWACO. The wage bill of the Ministry of Water Resources and Sanitation and allied agencies will amount to NLe26.9 million.

The Saudi Fund and Indian EXIM Bank will disburse NLe48.3 million to SALWACO for the drilling of 100 solar powered boreholes and the implementation of the Four Towns Water Supply Project in Mongo, Daru, Njala and Mattru Jong. The African Development Bank (AfDB), OFID and Kuwaiti Fund will disburse NLe54.5 million to the Guma Valley Water Company for the implementation of the Freetown WASH and Aquatic Environment Revamping Project.

Tourism
The government is allocating NLe11.2 million from the recurrent budget to the Ministry of Tourism and Cultural Affairs, NLe6.1 million to the National Tourist Board, NLe3.4 million to the Monuments and Relics Commission and NLe1.9 million to the National and Railway Museums.

From the domestic capital budget, the sum of NLe8.5 million is allocated to the tourism sector for the construction of Tourist Information Centres, the development of sustainable ecotourism, and the construction of the physical infrastructure for cultural heritage.

The World Bank will disburse NLe82.3 million for development of tourist sites at Leicester Peak, Tacugama Sanctuary and Bureh Beach under the Sierra Leone Economic Development Programme (SLEDP).

Trade and Private Sector Development
The government is allocating NLe23.3 million to the Ministry of Trade and Industry from the recurrent budget. Of this, NLe14.4 million is for export development, quality control, business reforms and consumer protection. The sum of NLe18.2 million is also allocated to the National Investment Board (NIB) and NLe4.2 million to SMEDA.