BAN Slams Government for Allocating 1% Budget for Development
The Budget Advocacy Network (BAN) has strongly condemned the government’s decision to allocate just 1% of the 2025 national budget to development programs, questioning its commitment to addressing pressing socio-economic challenges.
Speaking at a press conference on November 26, 2024, BAN acknowledged progress in inflation control, trade deficit reduction, and exchange rate stability but raised concerns over the growing budget deficit, declining foreign reserves, and minimal investment in critical sectors like health.
According to BAN, foreign reserves fell below ECOWAS standards, dropping from 2.6 months of import cover in 2023 to 2 months in mid-2024, jeopardizing currency stability and increasing the cost of living. The group urged innovative measures like diaspora bonds and stricter tax policies to bolster reserves.
The ballooning budget deficit—from NLe 2.7 billion in 2024 to NLe 7.5 billion in 2025—also drew criticism, with BAN warning that excessive borrowing is straining public finances. The network recommended cutting non-essential spending, embracing e-governance, and curbing overseas travel to prioritize key expenditures.
BAN highlighted the unsustainable rise in the wage bill, which will consume 40% of domestic revenue, alongside 59% allocated to debt servicing. Only 1% remains for development, which BAN called inadequate for addressing public needs. They urged the government to limit hiring outside health and education sectors and link wage increases to productivity.
Health spending, at just 9% of the budget, falls short of the Abuja Declaration’s 15% target. BAN called for urgent investment in healthcare infrastructure and services to improve outcomes. The group also criticized a lack of transparency in revenues from new import duties and the education levy, demanding quarterly reports to build public trust.
BAN concluded by urging the government to improve fiscal management, reduce budget reallocations, and ensure timely funding for public services, advocating for a development-focused approach to tackle Sierra Leone’s persistent socio-economic challenges.
