Sierra Leone Finance Ministry Sets Revenue and Deficit Targets in FY2027 Budget Review

Sierra Leone’s Ministry of Finance has outlined plans to increase domestic revenue, reduce public debt and narrow the budget deficit as it presented its FY2027 budget and strategic priorities for stakeholder scrutiny.

The presentation was made during the Bilateral Budget Hearings on October 1, where District Budget Oversight Committees, Non-State Actors and Civil Society Organisations examined the Ministry’s proposed allocations and their alignment with national development priorities.

Tasima Jah, Director of Budget, Deputy Minister of Finance I Kadiatu Allie, Financial Secretary Matthew Dingie and Acting Director of Research and Delivery Alhaji Abu Komeh were among the officials involved in the session. Participants questioned the Ministry’s priorities, expenditure and proposed programmes, while officials provided responses and clarification.

Fiscal targets for 2027

According to the Ministry’s presentation, domestic revenue stood at 10.7 percent of gross domestic product in 2025, equivalent to NLe18 billion. The Ministry aims to raise this to at least 12.3 percent of GDP, or NLe25.99 billion, by 2027.

The Ministry also set a goal of reducing the debt-to-GDP ratio from 49.3 percent in 2025 to 43.5 percent by 2027. Its target for the overall budget deficit, including grants, is to bring the figure down from 4.4 percent of GDP to below 3 percent over the same period.

Other priorities include stronger public debt management, improved budget planning and execution, better accounting and reporting of public funds, and enhanced internal controls. The Ministry also plans to strengthen fiscal risk management and fiduciary oversight of State-Owned Enterprises, Ministries, Departments and Agencies, as well as public-sector projects.

Budget and programme performance

The proposed FY2027 budget for the Ministry totals NLe232.6886 million, virtually matching the approved ceiling of NLe232.6887 million.

The Ministry reported an approved budget of NLe164.1 million in 2025 and actual expenditure of NLe164.2 million, representing a stated variance of NLe0.1 million. For 2026, its approved budget was NLe269.3 million, while expenditure had reached NLe188.5 million by the end of September, leaving a reported balance of NLe80.8 million.

The presentation covered the Ministry’s strategic framework, expenditure performance, planned programmes and its 2027–2029 Strategic Plan. It also cited a goal of increasing project portfolio disbursement from 26 percent to at least 30 percent.

Planned work includes operationalising the National Electronic Single Window, including replacing the ASYCUDA system. The Ministry also intends to advance fiscal decentralisation, enact a revised Public Financial Management Act, produce regular macroeconomic projections and evidence-based research, and issue periodic reports on the implementation of audit recommendations.

Economic conditions and oversight

Financial Secretary Matthew Dingie said Sierra Leone’s economy had been growing at about 3 to 4 percent annually. He said the Government was pursuing measures to support industrial activity, manage inflation and maintain exchange-rate stability.

Dingie also identified developments in the Middle East, petroleum price movements and changes in international interest rates as external pressures affecting the economic environment.

The Ministry had participated in reviewing budget submissions from other Ministries, Departments and Agencies before its own spending plans were examined during the hearing. Its broader strategic areas include macroeconomic and fiscal policy coordination, fiscal decentralisation, donor-funded project management, corporate governance and access to climate finance.