In First Half Of Year… Sierra Leone Records NLe11.12 Bn Revenue Increase
JKM
Figures released by the Budget Bureau and National Revenue Authority (NRA) show that for the first half of FY 2025, total revenue and grants in Sierra Leone reached NLe 11.12 billion, equivalent to 5.8% of GDP. This marks a significant year-on-year increase from NLe 8.80 billion in the same period last year.
However, the result fell short of the budgeted NLe 12.98 billion (6.7% of GDP) for the period — leaving a shortfall of NLe 1.86 billion.
Domestic revenue was expected at NLe 9.55 billion (4.9% of GDP) but actual collections amounted to NLe 9.02 billion.
Grant funding from development partners was budgeted at NLe 3.43 billion (1.8% of GDP), of which only NLe 2.10 billion materialised.
Strong growth in collections — Domestic revenue rose sharply (by nearly 26% over the previous year) thanks to strengthened tax administration and policy adjustments.
Forecasting and execution gap — While effort improved, the gap between budgeted and actual revenue indicates issues in forecasting accuracy and/or in donor-grant absorption and disbursement.
Grant delays remain a constraint —
The under-performance on grant receipts points to slower than expected donor/project flows and may reduce the government’s fiscal manoeuvring space.
Implications for fiscal stability — As the government leans on both domestic resources and external funding, the shortfall raises questions about how effectively spending ambitions can be met without increased borrowing.
Outlook and risks
The government needs to maintain momentum in domestic revenue mobilisation through compliance measures, IT systems, audits and broadening of the tax base.
Donor coordination and project-fund disbursement must improve to meet the expected grant inflows and reduce dependency on costly borrowing.
With external economic headwinds—such as weak global commodity prices and supply-chain disruptions—the government’s ability to close the gap will hinge on fiscal discipline and realistic budget planning.
Closing the shortfall will be important to avoid escalating the budget deficit, which could in turn raise debt sustainability concerns.
Bottom line
The first half of FY 2025 for Sierra Leone shows meaningful progress: revenue collections are up, and reform efforts appear to be yielding results. But the shortfall against budgeted targets underlines that progress remains only partial. The challenge ahead will be transforming that momentum into full-year outcomes, closing the budget gap and ensuring spending remains sustainable.
