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Sierra Leone’s public spending increased in March 2025, with total government expenditure climbing to SLE 1.77 billion, up from SLE 1.72 billion in February.
Awoko reports that Despite shifts in fiscal priorities, including a notable drop in the wage bill, the month concluded with a widened budget deficit.
The modest but significant increase in overall spending signals continued fiscal pressure on the government, even as it attempts to balance austerity measures with essential commitments. This rise in expenditure was largely driven by a sharp increase in transfers and grants, which soared to SLE 297 million in March, compared to SLE 189 million the previous month.
Of this amount, SLE 225 million was directed towards various government agencies, including those operating under the Treasury Single Account (TSA). This marks a substantial rise from the SLE 143 million allocated to these entities in February, with analysts suggesting these transfers may reflect targeted interventions or bolstered support for critical services and programs.
Furthermore, capital expenditure also saw a significant rebound, reaching SLE 101 million. This is a notable uptick from February’s SLE 73 million, indicating renewed momentum for infrastructure and development initiatives after a dip.
While overall expenditure rose, there were counter-trends in other areas. Spending on wages, salaries, and employee benefits actually dropped to SLE 564 million from SLE 638 million, potentially due to delayed payroll disbursements or stricter controls. Non-salary, non-interest operational costs also declined to SLE 166 million from SLE 180 million, suggesting efforts to rein in day-to-day spending.
Despite these efforts to tighten belts in some areas, the increased outlays in transfers and capital projects contributed to the higher overall expenditure. The nation’s substantial debt burden continued to consume a significant portion of resources, with domestic interest payments at SLE 599 million and external debt servicing at SLE 44 million.
With revenues failing to keep pace with the increased spending, the government recorded a cash deficit of SLE 744 million in March. The latest figures underscore the urgent need for deeper fiscal reforms to bridge the widening gap and steer the country towards financial stability amidst competing priorities.
