Freetown, 20th October 2025- Sierra Leone’s fiscal posture for the first half of FY2025 reflects bold spending ambitions amid rising domestic revenue, but also a widening budget deficit. According to figures released by the Budget Bureau, government expenditure and net lending surged to NLe17.74 billion, marking a 57% increase from the NLe11.28 billion allocated in the same period last year.
The sharp rise in spending is driven by a mix of recurrent and capital investments. Of the total FY2025 first-half budget. Recurrent expenditure accounts for NLe10.78 billion while capital expenditure and net lending stand at NLe6.97 billion. contingency and arrears pay down add a combined NLe147.29 million.
On the revenue side, the government projects NLe12.98 billion in total revenue and grants. This includes: NLe9.55 billion in domestic revenue, NLe3.43 billion in grants from development partners, of which NLe2.10 billion are off-budget grants
Despite the uptick in revenue, the gap between income and expenditure has widened, resulting in a budget deficit of NLe4.91 billion. This shortfall is expected to be financed through a mix of domestic and foreign borrowing, raising questions about debt sustainability and fiscal discipline.
A comparative analysis of the FY2024 and FY2025 first-half budgets reveals a significant shift in fiscal strategy. The bar chart titled “FY2025 First Half Budget Summary” shows a clear upward trajectory in both revenue and spending, but the pace of expenditure growth outstrips income gains, underscoring the pressure on public finances.
The expanded budget signals the government’s intent to invest in infrastructure, public services, and arrears clearance. However, the reliance on borrowing to plug the deficit highlights the need for stronger revenue mobilization and tighter expenditure controls.
As Sierra Leone navigates a post-aid fiscal landscape, the FY2025 budget reflects both ambition and vulnerability. The challenge ahead lies in balancing growth-driven spending with sustainable financing, while ensuring that every Leone spent delivers measurable impact.
