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The Government of Sierra Leone, through the Ministry of Finance, has projected a total of NLe31.1 Billion in 2027 or 14.7% 2 of gross domestic product, as it seeks to keep expenditure within tighter resource constraints while containing debt and borrowing pressures.
According to a publication by Awoko Newspaper, the projection is contained in a Budget Call Circular signed by Financial Secretary Matthew Dingie and sent to ministries, departments and agencies to guide preparation of the 2027 budget and spending plans through 2029.
“Government will prioritise expenditures consistent with the resource envelope for FY2027,” the circular states, underscoring the administration’s push to match spending ambitions with available financing.
It is stated that recurrent spending will dominate the budget at Ne23.4 billion, equivalent to 11.1% of GDP. The wage bill is projected at NLe8.8 billion, while goods and services will account for Nle4.3 billion and subsidies and transfers NLe4.1 billion.
Debt service will consume another NLe6.1 billion, with domestic obligations accounting for Nle5.8 billion and external debt service Nle309 million. The domestic capital budget is projected at just NLe2.3 billion, highlighting the limited fiscal space for government-funded development projects.
The spending trajectory points to the fiscal squeeze. While nominal expenditure and net lending are forecast to climb to Le36.9 billion by 2029, their share of the economy is expected to fall to 13.9% of GDP from 14.7% in 2027 as economic output expands.
The government expects to finance the deficit through a mix of domestic and external borrowing. Net domestic borrowing is planned for 2027, followed by net repayments to the domestic banking systeın in 2028 and 2029, while non-bank domestic borrowing is expected to continue throughout the period.
The strategy is aligned with the Medium-Term Debt 2025 2009, which prioritises development of the domestic debt market while seeking to reduce financing pressures and improve debt sustainability.
“Government will continue to improve the efficiency and effectiveness of expenditures, strengthen public financial management and debt management and promote transparency and accountability in the use of public resources,” the circular says.
