By Shadrach Aziz Kamara
The Minister of Finance, Sheku Ahmad Fantamadi Bangura, on Tuesday 29th July 2025 laid before Parliament the Supplementary Appropriation Act 2025, a financial measure aimed at revising government spending and revenue projections in line with the changing domestic and global economic realities.
Presenting the supplementary budget to Members of Parliament, Minister Bangura emphasized that the theme of the revised fiscal framework is “Fiscal Consolidation and Budget Credibility to Sustain Macroeconomic Stability.” He explained that while Sierra Leone has recorded strong macroeconomic gains over the past year, the combination of global economic uncertainties, reduced aid flows, and revenue shortfalls necessitated adjustments to the original 2025 budget.
The minister reminded the House that the original 2025 budget was approved on 20 December 2024, but after six months of implementation, developments such as lower-than expected domestic revenue collection and tighter international financing conditions made revisions inevitable.
“Inflation has declined to single digits at 7.1% in June 2025, the Leone has remained stable, and Treasury bill rates have dropped sharply to 14.8%, indicating strong macroeconomic fundamentals,” he stated.
“However, domestic revenue collection fell short by Le646.2 million, largely due to weak compliance in Goods and Services Tax and import duties.”
The economy is projected to grow by 4.5% in 2025, supported by agriculture and services, while mineral and agricultural exports continue to strengthen. During the first quarter of 2025, Sierra Leone exported $424.1 million worth of goods, an 11% increase over the same period in 2024, led by iron ore, diamonds, and agricultural produce.
Despite these gains, total domestic revenue for 2025 has been revised downwards to Le17.9 billion (9.3% of GDP) from the original Le18.9 billion. Similarly, total expenditure and net lending have been cut to Le31.3 billion (16.2% of GDP), down from Le35 billion, with the aim of keeping the budget deficit at 3.8% of GDP slightly below the original 3.9%.
Capital expenditure, especially domestically funded projects, will face the largest cuts to reflect the reduced fiscal space, while priority will be given to subsidies for energy providers, interest payments, and essential services.
Minister Bangura outlined several measures to boost domestic revenue and curb tax evasion in the second half of 2025. These include:
1. Enforcement of the Minimum Alternate Tax and safe harbor rules for mining companies.
2. Expanding the tax base with 5,000 new registered taxpayers.
3. Rolling out electronic invoicing and petroleum product marking systems to curb tax fraud.
4. Strengthening GST collection and improving reconciliation of customs and excise duties.
On debt sustainability, the minister acknowledged that debt service payments consumed nearly 50% of domestic revenue in the first half of the year. He announced plans to reduce weekly borrowing, issue long-term treasury bonds, and pursue more concessional financing and grants to ease pressure on the domestic market.
Minister Bangura stressed that the supplementary budget is not an austerity package but a consolidation framework designed to preserve the gains achieved in stabilizing the economy.
“Our goal is to maintain budget credibility, reduce fiscal risks, and create space for investment in priority areas, while ensuring that government honors its debt obligations,” he concluded, thanking President Julius Maada Bio for his leadership in guiding economic management.
The Supplementary Appropriation Act 2025 now debated by Members of Parliament (MPs) and passed into law.
