BudgIT Sierra Leone has raised alarm over the country’s escalating wage bill and persistent budget deficit, warning that these twin challenges continue to undermine the nation’s ability to deliver essential services and invest in sustainable development.

In a detailed analysis, BudgIT Sierra Leone highlighted that an overwhelming portion of the national budget is consumed by salaries and allowances for civil servants.

Despite this heavy expenditure, domestic revenue generation remains insufficient to cover recurring obligations, let alone fund critical sectors such as infrastructure, education, and healthcare. Without decisive reforms, the cycle of overspending and underfunding will persist, stalling Sierra Leone’s progress.

According to BudgIT, one of the primary drivers of the bloated wage bill is the prevalence of ghost workers individuals who are retired, deceased, or fictitious but still listed on government payrolls.

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Inadequate coordination in hiring across ministries and the reliance on outdated, paper-based payroll systems make the system vulnerable to manipulation, fraud, and human error.

Limited public access to budgetary information further exacerbates the issue, allowing misuse of funds to go undetected. Meanwhile, oversight institutions such as Parliament and the Audit Service Sierra Leone face constraints related to resources, independence, and technical capacity, hampering their ability to effectively monitor government spending.

The report also points to widespread tax evasion and low compliance as significant contributors to the budget crisis. Many individuals and businesses either underreport or entirely avoid their tax obligations, depriving the government of critical revenue needed to pay salaries and fund basic services.

BudgIT Sierra Leone proposes a series of practical reforms aimed at improving fiscal transparency and accountability, including:

  1. Payroll Audit: Conduct a comprehensive audit to identify and remove ghost workers, ensuring only legitimate employees receive salaries.

  2. Restrict Hiring: Limit new public sector hiring to essential roles, particularly in the health and education sectors.

  3. Digitization: Implement biometric verification and digitize payroll systems to curb fraud and administrative errors.

  4. Transparency Platforms: Establish and expand public access platforms, such as an Open Treasury Portal, to enable citizens, media, and civil society to track budget allocations and expenditures.

  5. Strengthen Oversight: Provide Parliament and the Audit Service with adequate resources and independence to fulfill their oversight mandates effectively.

  6. Outcome-Based Budgeting: Link budget allocations to measurable outcomes, directing public funds towards programs that directly improve citizens’ lives, including access to clean water, affordable healthcare, and quality education.

  7. Tax Enforcement: Tighten enforcement of tax laws and broaden the tax base to increase domestic revenue and reduce reliance on external borrowing.

“Sierra Leone’s rising wage bill and persistent budget deficit are serious obstacles to long-term development, but they are not insurmountable,” BudgIT stated.

“Through strategic reforms, enhanced transparency, and strong public accountability, the government can realign national spending priorities and free up resources for investments that truly benefit citizens.”

BudgIT Sierra Leone concluded by stressing that the time for bold action is now, emphasizing that the future of the country depends on implementing these much-needed reforms.