Sierra Leone’s public spending surged in March 2025, with total government expenditure reaching NLe 1.77 billion, a notable increase from NLe 1.72 billion in February. This uptick signals persistent fiscal strain on the government, as it navigates the complex task of balancing austerity with critical national needs. Despite a strategic — and perhaps unexpected — reduction in the national wage bill, the month concluded with an exacerbated budget deficit. The primary catalyst for this rise in expenditure was a significant leap in transfers and grants, which escalated to NLe 297 million in March from NLe 189 million the preceding month. A substantial portion of this — NLe 225 million — was channeled to various government agencies, including those operating under the Treasury Single Account (TSA). This figure represents a considerable increase from the NLe 143 million allocated in February, suggesting a strategic deployment of funds for targeted interventions or enhanced support for essential services and programs.
Concurrently, capital expenditure experienced a robust recovery, climbing to NLe 101 million. This marks a significant improvement from February’s NLe 73 million, indicating a renewed focus on infrastructure and development projects, following a period of deceleration.
However, amidst this overall rise in spending, there were discernible counter-trends. Expenditure on wages, salaries, and employee benefits saw a reduction, dropping to NLe 564 million from NLe 638 million. This could be attributed to a range of factors, including potential delays in payroll disbursements or the implementation of stricter payroll controls. Similarly, non-salary and non-interest operational costs decreased to NLe 166 million from NLe 180 million, reflecting efforts to curtail day-to-day administrative expenses. Despite these targeted efforts to rein in spending in certain sectors, the substantial increases in transfers, grants, and capital projects, ultimately propelled the overall expenditure upwards. The nation’s considerable debt obligations continued to exert significant pressure on public finances, with domestic interest payments totaling NLe 599 million and external debt servicing at NLe 44 million, consuming a disproportionate share of available resources. As revenues struggled to keep pace with the elevated spending, the government recorded a substantial cash deficit of NLe 744 million in March. These latest figures underscore the critical and immediate necessity for comprehensive fiscal reforms to address the burgeoning deficit and guide Sierra Leone toward a path of sustainable financial stability, amidst a myriad of competing priorities and economic challenges.