Freetown, 29 July 2025 – Sierra Leone’s Minister of Finance, Sheku Ahmed Fantamadi Bangura, today laid before Parliament the 2025 Supplementary Budget, aimed at reinforcing fiscal discipline and safeguarding the country’s hard-won macroeconomic stability.
Titled “Fiscal Consolidation and Budget Credibility to Sustain Macroeconomic Stability,” the revised financial plan responds to both local and global economic shifts that have emerged since the original 2025 budget was passed in December 2024.
Addressing lawmakers at Tower Hill, Minister Bangura highlighted strong economic performance in the first half of the year, pointing to a significant drop in inflation to 7.1% by June 2025, and a projected GDP growth rate of 4.5%, driven largely by agriculture and service sectors.
He warned, however, that global challenges such as rising tariffs, reduced aid flows, and tighter financial markets have necessitated adjustments to the country’s fiscal approach.
A key feature of the revised budget is the reduction of the fiscal deficit from 3.9% to 3.8% of GDP, intended to curb domestic borrowing and support the Bank of Sierra Leone in its efforts to maintain price stability and strengthen the national currency. Treasury Bill rates have already fallen sharply, from 31.3% in late 2024 to 14.8% as of June this year.
Economic indicators from the first half of 2025 reflect a trend of cautious optimism. Inflation dropped from a high of 54.5% in October 2023, thanks to a stable exchange rate, declining global food and fuel prices, and improved local food output. Exports grew by 11% in the first quarter of 2025, reaching US$241 million, and helping reduce the trade deficit to US$37 million. However, foreign reserves declined to 1.32 months of import cover, prompting concerns over external vulnerabilities.
On the revenue side, domestic collections amounted to NLe9 billion (4.6% of GDP) but missed the half-year target by NLe620 million due to shortfalls in GST, import duties, and royalties. In response, the National Revenue Authority plans a more aggressive revenue drive in the coming months, which will include expanded use of Electronic Cash Registers, stricter enforcement of the Minimum Alternate Tax, and improved systems integration to tackle tax evasion.
Government expenditure for the first half of the year stood at NLe14.8 billion, below projections, with recurrent spending dominating. Capital expenditure was slashed in the revised budget from NLe13.0 billion to NLe9.0 billion (4.7% of GDP), with funds now directed toward fewer but higher-impact projects.
Debt servicing remains a heavy burden, consuming 50% of domestic revenue in the first half of the year. To ease this pressure, the government plans to limit borrowing, boost revenue collection, and prioritize concessional financing. As of December 2024, Sierra Leone’s total public debt stood at US$11 million, including US\$1.8 billion in external and US$1.3 billion in domestic liabilities.
Minister Bangura assured Parliament that the supplementary budget reflects the government’s continued commitment to sound economic management.
“It is a plan rooted in realism and responsibility,” he said. “We are determined to consolidate fiscal gains, maintain investor confidence, and protect our economic future.”
The Supplementary Appropriation Act 2025, tabled under Section 112(3) of the 1991 Constitution, now awaits parliamentary approval. As global uncertainties persist, the government’s recalibrated fiscal path is being viewed as a necessary step toward economic resilience and long-term development.
