Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698830829216.pdf (Sierra Leone)
GOVERNMENT OF SIERRA LEONE GOVERNMENT BUDGET and Statement of Economic and Financial Policies For the Financial Year, 2012 Theme: “Celebrating Five Years of Transformative Change” DELIVERED BY DR. SAMURA M. W. KAMARA Minister of Finance and Economic Development in the Chamber of Parliament TOWER HILL, FREETOWN ON Friday, 25th November, 2011 MR. SPEAKER, HONOURABLE MEMBERS I.
INTRODUCTION Mr. Speaker, I rise to move that the Bill entitled, “An Act to provide for the services for Sierra Leone for the Financial Year (FY) 2012” be read for the first time.

II.

Delivering on Commitments 2.


Mr. Speaker, at the onset of this Government in September 2007, Sierra Leone was relatively at the low end of several international country road performance infrastructure in telecommunication density, in access to finance, and basic social services - water and sanitation, health and education, in environmental management, as well as in economic and financial governance.
in agricultural productivity, in power generation and distribution, including coverage, ratings, in for Change”.

These 3.

Mr. Speaker, Honourable Members, four years on, we are all witnesses to visible achievements attained so far.
In his Address on the occasion of the State Opening of the Fifth Session of the Third Parliament of the Second Republic of Sierra Leone, His Excellency the President, Dr. Ernest Bai Koroma, did catalogue some of the landmark achievements in moving forward his “Agenda include economic growth and recovery; construction and rehabilitation of trunk, feeder and urban roads throughout the country; completion of the Bumbuna Hydroelectric Power Project and enhancement of other hydro, thermal and solar power generation; rehabilitation of clean water supply systems; introduction of the Free Healthcare Initiative and significant improvements in healthcare for lactating mothers, pregnant women and children under five; transition from subsistence farmers; to commercialisation of agriculture, especially for smallholder increased budgetary transfers to Local Councils, which have transformed and strengthen them as subnational government development agents; improving the investment climate through strengthening of the legal and regulatory regimes and removal of several physical and administrative barriers; expansion of air and sea transportation; improvement in the efficiency of economic management; and broadening and deepening the financial system.
4.

Mr. Speaker, Honourable Members, the year 2012 marks the end of the “Agenda for Change”.

In 2012, we will be celebrating five years of transformative achievements, including of higher standings on the major international country performance rankings.

In particular, in the World Bank’s Country Policy and Institutional Assessment (CPIA), our score has improved to 3.3, thereby moving Sierra Leone beyond the threshold of the classification of a fragile state.
Sierra Leone has now been classified from a fragile low income country to low income country with the attendant implications for donor assistance.

This performance tells us that we are on the right path and that we are following the right policies.

Our goal is to use the fruits of our successes to sow the seeds of our future prosperity.

5.

This is a direct response to His Excellency the President’s call to consolidate and continue to improve upon the gains already made in the “Agenda for Change”.
This enviable success story has been on the back of determined incremental public spending on priority sectors.

Between 2007 and 2010, cumulative public spending, excluding donor support, rose by more than threefold in agriculture, 105 percent for roads, over 79 percent in energy, about 40 percent in health, and 36 percent in education; hence, our overarching emphasis on spurring both economic growth and human development.
The combined Government spending institutions including Anti Corruption Commission, Parliament, the Judiciary, Audit Service, National Electoral Commission and Human Rights Commission, rose by more than tenfold during this period.
In line with the fiscal decentralisation objective, combined transfers for Local Councils for both devolved functions and developmental projects increased by more than threefold, from Le13.4 billion in 2007 to Le77.9 billion in 2010; the key priority sectors being agriculture, from under Le 1 billion to Le13 billion in 2010; health, from Le2 billion to Le31 billion; and education, from Le8 billion to Le28 billion.

in support of governance 6.


Mr. Speaker, in spite of all these achievements, significant challenges still remain.

The need to address the infrastructure deficit continues to require our attention; strategic investments are needed in people; public sector capacity and accountability need further strengthening; and more importantly, better management of our natural resources is compelling to ensure that the benefits are widely and equitably shared.
Hence, without prompting the outcomes of the pending National Consultative Conference on the next 50 years, the next “Agenda for Change” should among other priorities, focus on ensuring inclusive growth and poverty reduction, effectively managing natural the Millennium resources, accelerating progress Development Goals (MDGs), enhancing the competitiveness of the economy, expanding quality employment opportunities, and strengthening social protection systems.

towards achieving 7.


Mr. Speaker, Honourable Members, as is customary, I will now present the rest of my 2012 Budget Statement by first reviewing recent developments in the world and regional economies and the impact of these on our domestic economy.

III.

Recent Developments in the World and Regional Economies and Outlook 8.
Mr. Speaker, the macroeconomic environment facing all policy makers in the developed, emerging market and less developed countries has become much more difficult since the global economic crisis erupted in 2008, less than one year in governance by this Government.

Our economies have been buffeted by multiple shocks: from food and fuel prices, to export markets, to portfolio capital flows and home remittances, and to development assistance, tourism and the like.
The current sovereign debt crisis in the Euro zone is arguably the single biggest risk to the global economy.

World financial and capital markets continue to show serious signs of stress.

Jobless figures in the advanced countries continue to rise just as their relatively high economic growth forecasts are now being slashed.

In the corporate world, blue chip giant companies continue to unveil plans to shed jobs.
Slashing overheads has become an imperative as the downturn in the global economy and the squeeze in household incomes sap their profit levels.

These problems facing the global economy, including the need for rebalancing of demand, the volatility of imply that commodity prices and vulnerabilities countries, such as Sierra Leone, cannot expect any abatement of external shocks to their economies, over the medium term at least, if not over a longer time horizon.
Notwithstanding, the macroeconomic and structural reforms which have been implemented by us in recent years have already helped to make our economies relatively more resilient in the face of external shocks.

financial markets, in 9.

At the regional level, 2012 thus looks a promising year for Sub-Saharan Africa, provided that domestic economic management remains focussed and sustained.

Economic growth in the region is projected at 5.8 percent in 2012, improving upon the 2011 growth rate of 5.2 percent.
The prospects for low- income Sub-Saharan African countries are even better, with an estimated growth rate of 6 percent in 2011 and a predicted growth rate of around 7 percent in 2012.

I believe that we can draw important lessons from our experience of 10. dealing with the macroeconomic shocks to guide further strengthening of our macroeconomic policies and other mitigating measures, especially to protect the most vulnerable in our societies.

11.
11.

Mr. Speaker, Honourable Members, I will now turn to our domestic economy.

IV.

Macroeconomic and Budgetary Performance in 2011 Macroeconomic Performance 12.

Mr. Speaker, to our credit, we can boast that, today, our domestic economic and financial fundamentals remain stronger than ever before, despite the difficult global economic environment.

The domestic economy is continuing its strong rebound.
Real Gross Domestic Product (GDP) is projected to grow by 5.3 percent in 2011 and the growth is expected to be broad based with positive contributions from all sectors of the economy.

13.

Domestic inflation remained high during the year, driven largely by the spike in the international prices of fuel and food.

However, following prudent fiscal and proactive monetary policies during the first half of the year, inflationary pressures have subsided since June 2011.
The year-on-year national inflation rate declined to 15.7 percent in September from 17.8 percent in May 2011.

Interest rates on government securities also fell.

However, commercial banks’ interest rate on overdraft remained unchanged, averaging 21 percent for the credit worthy clients and 29 percent for the risky borrowers.

14.

Total official exports increased by 5.5 percent to US$174.3 million during the first half of 2011, compared to US$166 million for the same period in 2010.
The increase in total exports was driven largely by the substantial increase in mineral exports, benefitting from the significant rise in international prices.

Mineral exports increased to US$109.6 million during the first half of 2011 compared to US$ 93.4 million for the same period in 2010 and are expected to increase sharply by the end of the year following the commencement of iron ore exports by African Minerals Limited.

15.
15.

The total value of merchandise imports increased by 124 percent to US$704 million during the first half of 2011, compared to US$314.3 million for the corresponding period in 2010.

The huge increase in imports was largely on account of the surge in import of machinery and transport equipment to support mining activities.

Hence, the trade deficit widened to US$530 million in the first half of 2011.

16.
16.

Despite this, the exchange rate remained relatively stable during the first half of the year, depreciating by only 3.9 percent, largely supported by increased foreign exchange inflows - both official and private - and strong macroeconomic fundamentals.

17.

Mr. Speaker, our country’s stock of external debt stood at US$848.7 million as at end June 2011, indicating an increase of US$67million (8.6 percent) on the end-December 2010 position.
Of the total external debt, long term debt constituted 75.3 percent; of which multilateral debt was 62.6 percent; official bilateral debt - 10.3 percent; commercial obligations and short term debt - 24.7 percent.

A large proportion of the external debt stock was contracted at highly concessional terms to ensure debt sustainability in the medium to long term.

Budgetary Performance in FY 2011 18.


Mr. Speaker, Honourable Members, public finances strengthened during the year, with improved revenue performance and prudent expenditure management.

Total revenue and grants amounted to Le1.4 trillion for the first three quarters of the year and is projected to reach Le2.2 trillion by end of the year.
Domestic revenue collected for the first three quarters of 2011 amounted to Le1.1 trillion and is estimated to reach Le1.4 trillion or 14.9 percent of GDP by the end of the year, compared to the original target of Le1.2 trillion.
Income taxes amounted to Le344.9 billion in the first three quarters of 19. the year, rising to Le419.9 billion or 4.4 percent of GDP by end 2011; total collections from goods and services tax amounted to Le266.7 billion for the first three quarters of the year, and are projected to yield Le335.3 billion or 3.5 percent of GDP for the year as a whole.

Customs and Excise collection amounted to Le257.6 billion and is likely to reach Le362 billion or 3.8 percent of GDP at end 2011.

20.
20.

Mining royalties and licenses amounted to Le167.8 billion and are projected to reach Le185.5 billion (1.9 percent of GDP).

Collections by other Government departments amounted to Le60.7 billion and will amount to Le73.9 billion by the end of the year.

Road user charge and vehicle licenses amounted to Le16.6 billion and are likely to reach Le49 billion by end 2011.

21.

External grants disbursed for the first three quarters of the year amounted to Le334.6 billion.
Of this, budgetary support received so far amounted to Le93.5 billion; support from Global Fund, Le10.4 billion; and Peace Building Fund, Le24.9 billion.

Project grants disbursed so far amounted to Le192.8 billion.

Total grants are projected to reach Le757.5 billion by the end of the year.

22.

Total expenditure and net lending for the first three quarters of 2011 amounted to Le1.8 trillion and is estimated to reach Le2.6 trillion, compared to the budgeted amount of Le2.2 trillion.
Of this amount, recurrent expenditures amounted to Le1.2 trillion so far, rising to an estimated Le1.6 trillion by the end of the year, compared to the original budget of Le1.4 trillion.

The higher than budgeted recurrent spending was due to overruns in the wage bill, interest on domestic debt and fuel subsidies.

Of the recurrent expenditures, the government wage bill amounted to 23.
Le474.1 billion by end September 2011 and is projected to rise to Le650.3 billion at the end of the year, compared to Le535.7 billion in 2010.

The higher wage bill was on account of the commencement of the new multi-year pay reform for teachers as well as other public servants, including military, police, health sector workers and civil servants.

24.
24.

Total interest payments on public debt for the first three quarters of the year amounted to Le172.2 billion, of which domestic interest payments amounted to Le157.5 billion.

Interest payments will amount to Le237.2 billion by year end.

Non-Salary, non-interest recurrent expenditure amounted to Le526.4 25. billion as at end September 2011 and is estimated at Le676.1 billion at the end of the year.
Transfers to Local Councils amounted to Le61.5 billion as at end September and are estimated to reach Le81.7 billion by year end, compared to Le78.4 billion in 2010.

26.

Total Capital expenditure amounted to Le673.8 billion as at end September 2011.

Capital expenditure funded by foreign loans and grants amounted to Le424.9 billion while that funded from domestic sources amounted to Le248.9 billion.
Total capital expenditures are expected to amount to Le994.9 billion (10.4 percent of GDP) by the close of the year.

Sectoral Spending in 2011 27.

Mr. Speaker, Honourable Members, total expenditure performance by key sectors for the whole of 2011, compared to the original approved budgets, is mixed.

In Agriculture, total expenditure is estimated at Le18.6 billion, 28. compared to Le22.4 billion in the original budget.
Of the estimated actual expenditure, food security activities will amount to Le12.2 billion while agricultural extension services will expend Le2.8 billion.

Grants for devolved functions in the agriculture sector will amount to Le13.5 billion.

In addition, Le1.5 billion would be spent from the domestic development budget on various agriculture projects.

29.

An amount of Le140.1 billion will be spent on road construction, compared to Le85.7 billion in the original budget.
This includes an amount of Le21.4 billion on the construction of the Lumley/Tokeh peninsular road and Le117.2 billion for the rehabilitation of streets in Freetown and district headquarter towns.

30.

On Transport and Aviation, an estimated Le23 billion would be spent by end 2011, as against Le4.4 in the original budget.
Of this amount, Le16.7 billion is for the expansion of the Lungi International Airport Terminal, Le2.1 billion as counterpart contribution to the Investment Climate Facility - Airport Transfer Project, and Le1.6 billion on procurement of Government vehicles.

31.

In the Energy Sector, an estimated amount of Le30 billion will be spent on energy related projects, compared to Le80.9 in the original budget.
This includes Le21 billion for the procurement of transmission and distribution materials including prepaid meters.

32.

Total estimated spending on water services is Le12.1 billion, compared to Le11.3 billion.

An amount of Le8.4 billion will be spent on the rehabilitation of rural water supply systems in Mile 91, Pujehun and other communities.

33.

Total non-salary expenditure on the Education Sector will amount to Le76.7 billion, compared to Le77.1 billion in the original budget.
Of this, Le48.5 billion is for grants to tertiary educational institutions; Le6.5 billion for examination fees to WAEC for the WASCE; Le3.2 billion as Grant-in–aid to boarding schools; Le2.1 billion to support the Girl Child programme; and Le1.0 billion to Technical/Vocational education.
In addition, grants for devolved functions in the education sector will amount to Le30.5 billion, of which school fees subsidies, text books and teaching and learning materials for Government and Government Assisted Schools will amount to Le17.3 billion; Le3.9 billion and Le4.5 billion as examination fees to WAEC for NPSE and BECE, respectively.

34.

In the Health Sector, total annual expenditure is estimated at Le42.6 billion, compared to Le36.6 billion.
About Le3.3 billion will be spent on the Free Health Care Programme; Le1.6 billion on the Expanded Programme of Immunization (EPI), Le5.6 billion for the procurement of drugs and medical supplies and Le12.2 billion on rehabilitation of government hospitals.

Grants for devolved functions in the health sector will amount to Le32.1 billion, of which support to tertiary health care services, Le16.1 billion; secondary health services, Le8.2 billion and Le7.9 billion for District Peripheral health care services.
35.

The security sector will spend a combined estimated amount of Le102.2 billion, compared to an original budget of Le107.3 billion.
Defence will expend Le54.3 billion, including Le7.5 billion for rice supplied to military personnel; Le31.7 billion by the Police including Le400 million for the rehabilitation and construction of police barracks; Le9.1 billion by the Prisons, including Le1.7 billion for diets and drugs; and Le3.0 billion by the National Fire Authority, including Le849 million for Fire Engines.

36.

Fuel subsidies paid to oil marketers so far amounted to Le95.4 billion in 2011.
This was aimed at limiting the full pass through of higher international oil prices to domestic pump prices, thereby minimising the hardship on the population.

37.

Mr. Speaker, Honourable Members, as outlined above, domestic revenue performance for 2011 as a whole is projected to be higher than original budget estimates, due largely to improved collections of tax and non-tax revenues.
The higher tax revenue performance has been driven by increased economic activities, improved tax administration and stricter enforcement of tax legislations, resulting in enhanced compliance.

Non-tax revenues have been higher than originally anticipated partly as a result of the payment of signature bonuses from petroleum exploration activities and payroll taxes by mining companies.

Programme grants have also been higher than budgeted.
By end 2011, domestic revenues will be Le269.1 billion higher than originally projected, while programme grants will be Le143.4 billion higher than budgeted.

38.
Thus, the higher revenues provided an opportunity to accommodate unbudgeted but highly compelling expenditures on the strategic priorities of the “Agenda for Change”, including in wages and salaries, fuel subsidy, infrastructure (roads and energy), Lungi International Airport Terminal Expansion, additional grants to tertiary educational institutions, NaCSA stalled projects, Statistics Sierra Leone for the Integrated Household Survey, printing of National ID cards and ECOWAS Passports, and new diplomatic postings.
Budget Deficit and Financing 39.

Mr. Speaker, the overall budget deficit, excluding grants, is estimated at Le1.1 trillion or 11.8 percent of GDP.

Including grants, the overall budget deficit is estimated at Le375.3 billion or 3.9 percent of GDP.

The total stock of arrears owed to domestic suppliers was reduced by Le67.1 billion in 2011.

40.
40.

The budget deficit for the year will be financed largely by external sources in the form of project and programme loans, amounting to Le334 billion (3.5 percent of GDP).

Domestic financing of the deficit will amount to Le116.9 billion (1.2 percent of GDP), of which bank financing will amount to Le73.6 billion and non-bank - Le43.2 billion.

Financing through privatisation receipts will amount to Le34.1 billion, essentially proceeds from the privatisation of the Ports Authority Container Terminal.
V. Structural Reforms 41.

Mr. Speaker, Honourable Members, Government continues to broaden and deepen structural reforms in general, to improve the efficient functioning of the economy.

Financial Sector Reforms 42.

The Bank of Sierra Leone has continued to further the implementation of the Financial Sector Development Plan (FSDP).
In support of these reforms, the World Bank provided US$4.0 million to support two components of the FSDP, namely improving access to finance and institutional and legal reform.

43.

The Bank has established and operationalised a Credit Reference Bureau in 2011 in an effort to minimize credit risks in the banking system to support private investment activities.

In collaboration with development partners, the Bank continues to promote rural financial intermediation.
To this end, a number of deposit and non-deposit-taking Micro Finance Institutions (MFIs) have been licensed.

As the business model of community banks undergoes reform, the International Fund for Agricultural Development (IFAD) is active in channeling refinancing resources to Small and Medium Scale Enterprises (SMEs) through the Financial Services Associations (FSAs).

The number of Financial Services Association has increased to reflect progress in rural credit flows, particularly agricultural credit.
44.

Another key component of the financial sector reform agenda is the need to foster stability through strengthened and effective supervision of the banking sector.

To this end, the Banking Act 2000 and the Bank of Sierra Leone Act 2000 were reviewed during the year to ensure compliance with international standards and these Bills would soon be laid before this Honourable House for enactment.
The Anti-Money Laundering (AML) Act 2005 was also reviewed in 2011, taking into account the Criminalisation of Terrorism Financing (CTF).

The revised Bill was approved by Cabinet early in the year and now awaits enactment by Parliament.

The implementation of the West African Monetary Zone (WAMZ) 45.

Payments Systems Project funded by the African Development Bank is also progressing well.

It is expected to ‘go live’ in 2012.


This project is expected to in the WAMZ member modernize the payments system countries, thereby facilitating the timely conclusion of financial transactions in the WAMZ.

infrastructure 46.

The Sierra Leone Stock Exchange (SLSE) continues to operate with Rokel Commercial Bank being the only listed Company.

It is expected that the privatization process will facilitate the listing of additional companies.
The Stock Exchange, fully operational, will assist in the mobilisation of medium to long term investment financing.

A Securities and Exchange Commission Act will soon be enacted to facilitate regulation and supervision of the Stock Exchange.

47.

During 2012, financial sector reform will focus on strengthening the capacity of the Central Bank and the commercial banks, as well as rural credit delivery by microfinance institutions.
The Financial Intelligence Unit of the Bank of Sierra Leone will also be made independent and effective.

Public Financial Management to 48.

Mr. Speaker, Honourable Members, Government continues implement public financial management reforms under the multi-donor funded Integrated Public Financial Management Reform Project (IPFMRP), which aims to consolidate and deepen reforms undertaken in earlier years.
In this regard, Government, with support from its development partners, has undertaken an independent assessment of the public financial management systems in central Government and local councils, utilizing the Public Expenditure and Financial Accountability (PEFA) methodology.

I am pleased to inform this Honourable House that the results of this assessment revealed improvements in our public financial management systems within central Government.
In partnership with our development partners, we have also outlined strategies in tackling the challenges identified in our local councils’ public financial management systems.

49.
49.

During the year also, the Government embarked on a comprehensive review of the Government Budgeting and Accountability Act (GBAA 2005) and the Public Procurement Act (2004) and their respective supporting regulations, that is, the Financial Management Regulations of 2007 and the Procurement Regulations 2006, in order to continue to strengthen the legal framework governing public financial management.
It is envisaged that these reviews will be concluded during 2012 and the revised Bills submitted to this House for enactment.

50.

Mr. Speaker, efforts continue to be made to enhance the planning, monitoring and evaluation process for capital projects.

To this end, in 2011, Government amended the GBAA (2005) in support of an appropriate framework for public investment.
In 2012, Government will rationalise the institutional arrangements for public investment planning and commence the process of developing a three-year Public Investment Plan (PIP) to be integrated within the budget process.

51.

In respect of external audit, the audits of the 2010 Annual Public Accounts for both Central Government and Local Councils have been completed and will soon be laid in this noble House.

Progress continues to be made in strengthening the internal audit function across Government.
Following the deployment of Internal Auditors in Ministries, Departments and Agencies (MDAs), Internal Audit Committees are now being established to follow up on audit recommendations.

Government continues to implement Public Expenditure Tracking Surveys (PETS) to ascertain the proportion of disbursed public resources that reach the intended beneficiaries.
The 2011 PETS, covering selected 2010 and 2011 poverty-related expenditures, was conducted findings and recommendations, will be submitted to Cabinet in the first half of 2012. in October 2011 and the Report, including 52.

Finally, we will continue to strengthen and deepen the implementation of the Integrated Financial Management Information System (IFMIS) and accelerate its rollout to additional MDAs during the ensuing financial year.
The number of local councils using the PETRA financial management software has increased to fifteen.

The software will be rolled out to the remaining four councils during 2012.

53.

The analytical and dissemination capacity of the Non-State Actors (NSAs) on public financial management issues is also being strengthened to improve civil society’s scrutiny over the use of public resources.
Going forward, I am proud to announce today that Government will be publishing a “Citizen’s Budget” for the first time in Sierra Leone.

This is in line with H.E.

President Koroma’s declaration at the 50th independence anniversary address where he made every Sierra Leonean citizen a “Public Monitor”.

A Citizen’s Budget is a simplified summary of the national budget written in a non-technical language in order to reach out to wider segments of our population.
Government sees many potential benefits of this initiative – the public as taxpayers have a right to be fully aware of the use of public resources.

And, through the Citizen’s Budget, the public would be made fully aware of why we invest in some projects and not in others in a given year, and the Government can also better explain some of the constraints it faces and the difficult choices it has to make.
Reflecting the transparency and accountability of our budget process, Sierra Leone has also been selected to be included in the international Open Budget Initiative (OBI).

Hence, we shall participate in the Open Budget Survey in 2012.

Private Sector Development Mr. Speaker, within the framework of the Agenda for Change, 54. improve the business implementing reforms to Government has been environment to enhance private sector activities, including small and medium- scale enterprises.
Following the establishment of the Credit Reference Bureau and other reforms undertaken during 2011, including making cross-border trading for Customs Administration (ASYCUDA++) and establishment of fast track commercial courts, Sierra Leone’s ranking for improving the business environment has improved significantly.

As a result, Sierra Leone has been ranked among the top ten global reformers in the 2012 Doing Business report.
Going forward, Government will focus on those areas where additional efforts are needed to further improve our ranking in the Doing Business Survey.

the Automated System implementing faster, Improving Governance 55.

Government continues to make efforts to improve governance and fight corruption.

Reflecting these efforts, Sierra Leone has improved its score on the MO Ibrahim Index to 48 out of 100 in 2011, up from 34 in 2006.

Hence, Sierra Leone now ranks 30 out of the 53 African nations scored in 2011.
56.

Looking ahead, Government will focus on improving transparency and accountability in the management of mineral and petroleum revenues to ensure the full realisation of the benefits of the mining sector for all Sierra Leoneans.

To this end, the National Minerals Agency is being established and will be made operational in 2012, aimed at strengthening capacity and improving governance in the mining sector.

57.
57.

As part of the drive to become EITI compliant, Government will intensify efforts to increase transparency within the mining sector.

With this in mind, His Excellency the President will soon launch the Government of Sierra Leone Online Repository, which contains details on all tax and non tax mining revenues.

This is a bold step forward and will enable citizens to access information about the mining sector.

The repository will be located on the website of the Ministry of Mines and Mineral Resources.
Public Sector Reform 58.

Mr. Speaker, over the last few years, the Government has delivered on the commitments made in the Agenda for Change and made major strides in improving the quality of services to the nation.

To achieve the even more ambitious policy objectives we are setting for ourselves in the next “Agenda for Change”, Sierra Leone needs a high performing civil service which is capable, motivated and committed to service delivery.
There is an urgent task to re- build our public service to meet our present and future challenges.

59.

In February 2011, Cabinet approved a multi-year pay reform strategy with the objectives of (i) making the levels of remuneration more competitive and equitable so as to enable us to attract and retain qualified and motivated personnel, in particular in the technical and middle levels; (ii) removing inefficiency; (iii) improving productivity and performance; and (iv) rationalizing the public service.
Given the low level at which we are today, this will take a few years to implement.

We have made a start by providing significant salary increases this year to teachers and other public servants.

Last year, with the launch of the Free Health Care Initiative, we increased significantly the remuneration to health workers.

60.
60.

For sustainability, the increase in levels of remuneration has to be accompanied by reforms which lead to improvements in productivity, efficiency and accountability, and have to be affordable.

This requires a well thought out, sequenced and prioritized approach to reforms.
The reforms in the public sector which Government intends to take in 2012 will include job evaluations, improved performance management systems and better recruitment and staffing policies – thereby changing the way in which our public service is structured, remunerated, and held accountable for public service delivery.

The public service should also be staffed with properly qualified individuals, recruited competitively and on merit.
These and other reforms are critical components of our overall pay reform efforts – only a more efficient and productive public sector can justify the case for pay increases.

61.

Mr. Speaker, in 2008, H.E.

the President initiated a performance contracting process to improve the performance of his Ministers and to strengthen accountability for results.
This year, the Government has started to extend this process to the management tiers of the civil service bureaucracy by cascading a system of performance management contracts in seven pilot ministries, involving several Permanent Secretaries and Directors, and six local councils.
In the coming year, Government will further extend this performance management system to all elements of the public service as we strive to deliver our development objectives and to hold ourselves accountable to the Sierra Leonean citizens.

We are being supported in this initiative by the Government of Kenya and the UNDP.

62.
62.

However, performance management alone is not a panacea: we must also ensure that we have enough skilled managers and professionals to run our MDAs and that we pay them fairly for the work they do and the contribution they make.

63.

To achieve this, with the World Bank’s support, Government will launch a results based “pay and performance” flagship Programme - Improving Productivity through Management and Pay Reforms.
This programme will support efforts to fill the “missing middle” in our civil service, reform the arrangements for paying public servants, as well as extend and embed performance management within the civil service.

For these efforts to be successful, the various agencies involved in public sector reform will have to better coordinate their activities and work together towards this common objective.
A high level coordination and collaboration is particularly required among the office of the Chief of Staff, the Public Sector Reform Unit, the Human Resource Management Office (HRMO), the Public Service Commission (PSC), the various MDAs and Heads of the Civil and Public Services.

Government is committed to providing them with adequate resources needed to deliver on this reform agenda.

64.
64.

Complementing this effort is the support from the European Union through the recently approved project - “Support to Civil Service Reform Programme in Sierra Leone” - which will be supporting training, rightsizing, institutional support to the HRMO, the PSC and other oversight institutions, and the mainstreaming of anti-corruption efforts in Government.

Fiscal Decentralization 65.

Mr. Speaker, Government remains committed to deepen the fiscal decentralisation process.
This is seen in both the increase in the amount of resources transferred to local councils as well as in improving the timely transfers of these resources.

In furtherance of its commitment to this process, the Ministry of Finance and Economic Development developed a second generation grant system which has linked finance and functions through a system of client-based expenditure norms and affordable service delivery standards.
The framework for this has been prepared and will come into effect in 2012. in determining 66.

Furthermore, to give councils greater autonomy expenditure priorities at the local level, an unconditional block grant system has been introduced for certain sectors.

In terms of development projects undertaken by councils, the concept of Rapid Result Initiative will be strengthened in 2012 and beyond to ensure local participation and ownership in the implementation of these projects.
Public Enterprise Reform 67.

Mr. Speaker, Honourable Members, the National Commission for Privatization (NCP) has moved from preparatory phase to implementation phase on the reform and divestiture of public enterprises.

The key milestone in 2011 is the concessioning and licensing of the Container Terminal and Break Bulk to Freetown Terminal (Bollore Group).

This transaction will yeild US$177 million over twenty years.
The Commission will conclude the following divestiture and reform in 2012: * Sale of Government 51percent shareholding in Rokel Commercial Bank (RCB); * Sale of 100 percent Shareholding interest in National Insurance Company (NIC); * Sale of 51percent Shareholding interest in Mining and General Services (MAGS); * Extension of the Sierra Leone Ports Authority (SLPA) Berth through private finance initiative will commence; and * Concessioning of the Sierra Leone Airport Authority (SLAA) Security System.
In addition, the NCP is: * exploring options for the divestiture of minority shareholding interest in the Sierra Leone Commercial Bank.

* about to conclude the management contract for Sierratel with a view to improve the financial and operational efficiency and make it more competitive.

* also working on the modalities for the resuscitation of National Development Bank.

VI.
VI.

Medium Term Macroeconomic Objectives and Outlook for 2012 - 2014 Mr. Speaker, Honourable Members, 68. the primary objective of Government’s economic policy in the medium-term is to sustain high economic growth and reduce poverty, while maintaining macroeconomic stability.
Thus, the medium term macroeconomic framework sets out a policy mix, aimed at achieving sustainable economic growth, job creation and the expansion of economic and social opportunities to a broader spectrum of the population, consistent with the priorities set out in the “Agenda for Change”.

The key priorities are to increase fiscal space for developing basic infrastructure and improving social services, while supporting the effective participation of the private sector in the economy.
The commencement of iron ore production is expected to boost 69. economic activity in 2012 and beyond.

The full implementation of the two new iron ore mining projects (African Minerals Limited and London Mining Limited) will substantially expand domestic output, exports and tax revenues in the coming years.

70.

Real GDP is projected to expand by at least 50 percent in 2012, putting Sierra Leone among the fastest growing economies in the world.
The economy is projected to grow further by 10 percent in 2013 and 2014.

Exports are projected to increase by fourfold in 2012 and will continue to grow in 2013 and 2014.

Even without iron ore production, the economy is projected to grow by 6 percent on average per annum in real terms during 2012-2014.
Consistent with this high growth performance, Sierra Leone has been identified by the International Monetary Fund (IMF) as one of the countries that will contribute to Sub-Saharan Africa’s strong growth performance in 2012, largely on account of developments taking place in the mining sector.

This two-speed economy however poses serious management challenges.
In this regard, Sierra Leone can learn from the experiences of other Sub-Saharan African countries, and in doing so, create a dynamic, long-term vision, whereby, the Dutch Disease, the resource curse and excessive environmental degradation are avoided.

71.

The current account deficit, will decline to 11.2 percent in 2012 and further down to 10.8 percent in 2013 on account of the sharp increase in exports.

Gross foreign reserves will average at least 5 months of imports cover.

72.
72.

The exchange rate is expected to stabilize in the medium term as export earnings increase.

The stability in the exchange rate, combined with the proactive monetary stance as well as increase in domestic food production, will lower inflationary pressures in the medium term.

Inflation is projected to fall to 11.0 percent in 2012 and return to single digits in 2013 and 2014.

73.
73.

Mr. Speaker, Honourable Members, the primary objective of monetary policy continues to focus on achieving and maintaining price stability consistent with high and sustained economic growth.

74.

In 2012, monetary policy of the Bank will remain focused on bringing inflation to a much lower level.
Monetary operations will therefore be centered on the use of market-based instruments, mainly Open Market Operations through the buying and selling of government securities and use of repo and reverse repo transactions.

The Bank envisages that the improved monetary and financial management in 2012 would translate into further decline in interest rates in the domestic money market.

Government will continue to maintain a flexible exchange rate regime 75. to allow the economy to adjust to external shocks.
In 2012, the Bank’s foreign exchange market interventions will be guided by the need to absorb foreign- financed budget spending, while reducing short-term volatility in the exchange rate.

76.

Mr. Speaker, Honourable Members, while global sovereign debt dynamics is posing serious difficulties for policymakers, Government is taking decisive steps to ensure that public debt management in Sierra Leone is conducted in an improved and transparent manner.
A clear manifestation of Government’s commitment to this effort is the passing of the Public Debt Management Act in February this year.

The Act has placed Sierra Leone as a forerunner in formulating sound legal framework for effective, transparent and accountable debt management among low-income countries.

77.
77.

Mr. Speaker, to ensure Sierra Leone does not slip into an unsustainable debt path as characterized in the pre-HIPC debt relief era, Government has been conducting annual debt sustainability analysis to determine a mix of borrowing requirements and the strategies required to access funds at low costs and low risk of default.
I am pleased to inform this House that the debt sustainability analysis conducted in July this year revealed that Sierra Leone’s external debt situation is sustainable in both the medium and long term.

However, in view of the vulnerability of export revenue to external shocks, our external debt situation is faced with a moderate risk of debt distress.

78.

On this basis, Government will continue to borrow at highly concessional terms to fund the much desired and productive infrastructure projects.
That said, the financing mix of infrastructure projects will draw from both traditional and non-traditional resources.

79.

Mr. Speaker, Honourable Members, as Government addresses the issue of external debt, we are also committed to ensure that our domestic debt remains within sustainable levels.

Due to the short tenure of the current domestic debt profile, our assessment reveals that our domestic debt has moderate level of both rollover and interest rate risks.
Government is taking proactive steps to effectively manage domestic debt portfolio by developing a strategy to restructure the existing portfolio from short to medium and long- term instruments to finance specific development projects.

80.

Mr Speaker, given the substantial economic growth prospects for Sierra Leone, 2012 provides an excellent opportunity to secure international credit ratings well in advance of any external sovereign funding requirements.
Sovereign ratings minimise investor uncertainty about economic and political prospects of a country and are crucial for a country which seeks to promote direct foreign investment for development purposes and issue sovereign debt in the international capital markets in the future.

VII.

The 2012 Budget 81.

Mr. Speaker, Honourable Members, the theme of the 2012 Budget is “Celebrating Five Years of Transformative Change”.
Hence, the 2012 budget is underpinned by the need to sustain spending on infrastructure development and the provision of basic services to make progress towards the attainment of the MDGs.

Efforts will therefore continue to improve domestic revenue collection while mobilising concessional external support from traditional and non-traditional partners to finance Government’s development agenda.
In 2012, domestic revenue collection will be supported by new activities in the mining sector and continued efforts to strengthen tax administration as well as the review of various fees and licenses collected by Ministries, Departments and Agencies.

Mr. Speaker, Honourable Members, the proposed 2012 Budget is 82. based on a sound macro-economic policy framework that supports growth, private sector development, democratic governance, and human development.
It, therefore, has the following key objectives and focus: (i) continue the implementation of ongoing infrastructure and social sector projects - roads, energy and water supply, schools, hospitals and health centres, in order to spur sustainable economic growth; (ii) continue to provide basic services in health, education, water and sanitation in order to accelerate progress toward the attainment of the Millennium Development Goals (MDGs); and (iii) improve the capacity and productivity of the public service by undertaking deep public sector reforms including pay reform, and the development of a robust performance management system to ensure effective and efficient delivery of public services.
Domestic Revenue Projections 83.

Total domestic revenue is projected at Le1.6 trillion (13.8 percent of GDP) in 2012, compared to Le1.4 trillion in 2011.

Of this, income taxes comprising personal and corporate taxes, will contribute Le451.6 billion (3.9 of GDP) in line with the growth of the economy.

The Goods and Services Tax (GST) is projected to yield Le407.5 billion (3.5 percent of GDP) as domestic consumption of goods and services increases and compliance strengthens.
Customs and excise duties are projected to amount to Le381.9 billion (3.3 percent of GDP).

While import duties are projected to increase in 2012 relative to 2011 due to the anticipated increase in import volume and value, excise duties on petroleum products are projected to fall from Le64.7 billion in 2011 to Le18.3 billion due to the reduction in excise tax on fuel products in May 2011 to keep domestic fuel prices at affordable levels.

84.
84.

Mining revenues in the form of royalties and licenses are expected to increase substantially to Le242.3 billion, compared to the estimated collections of Le185.5 billion in 2011 on account of the projected increase in iron ore exports in 2012.

Royalty on iron ore is projected at Le178.8 billion in 2012.

However, mining licenses are projected to drop to Le47.2 billion in 2012 from Le175.1 billion in 2011, as the signature bonuses from petroleum activities taper off in 2012.

85.
85.

Royalty and licenses on fisheries will amount to Le13.8 billion in 2012.

Collections of fees, licenses, fines, etc by other MDAs will contribute Le60.1 billion.

Dividends from parastatals mainly Rokel and the Sierra Leone to Le5.3 billion.

Other Government Commercial banks will amount Departments will collect Le60.1 billion.
Road User Charges are projected at Le44.3 billion, lower than in previous years, due to the reduction in the road user fee in order to maintain fuel prices at their May 2011 levels.

External grants are projected to decline to Le696.9 billion (6 percent of 86.

GDP) in 2012, compared to Le757.4 billion (7.9 percent) of GDP in 2011 due to lower HIPC debt relief and external budget support.

External budget support is projected to decline from Le249.9 (2.6 percent of GDP) in 2011 to Le193.0 billion in 2012.
However, support from the Multi-Donor Election Basket Fund will increase to Le113.8 billion in support of the 2012 general elections.

Project grants are projected at Le348.3 billion (3.0 percent of GDP).

Revenue and Tax Policies 87.

Mr. Speaker, Honourable Members, I will now turn to the policy measures for achieving the revenue targets.

Improving Tax Collection and Compliance 88.


Mr. Speaker, the National Revenue Authority implemented a number of reforms in 2011 under its modernization plan, which have contributed to the improved revenue performance this year.

These include, the roll-out of the ASYCUDA++ in customs operations, the establishment of a Domestic Tax Department, and a small and micro tax payer regime.

89.
89.

In consultation with the IMF, Government will be considering a number of other revenue enhancing measures and policies for implementation in 2012.
These measures which include amendments to the Income Tax Act 2000, will be reflected in the 2012 Finance Bill to be laid before this House: (i) The introduction of an additional schedule to the Income Tax Act – ‘the 11th Schedule’ - to address all tax and non-tax issues for the Oil and Gas Sector including all on-shore and off-shore exploration, development and production activities in this sector.
(ii) A simplified tax regime for Small and Medium Enterprises (SMEs) so as to bring on board the ‘hard to tax informal sector’ in the tax net, providing the taxpayer the option to be taxed on turnover basis as opposed to the outdated presumptive tax regime.

(iii) Improved provisions governing the taxation of multi-national companies with respect to various financing options including finance leases, thin capitalization, and the creation of permanent establishments.
This will ensure that source income from Sierra Leone is taxed accordingly irrespective of where ownership and control lie.

(iv) The Payroll Tax Act of 1972 will be amended to require individual tax clearance certificates for expatriate staff prior to the issuance of Work and Residential Permits by the Ministry of Labour, Social Security and Industrial Relations.
(v) The GST Act will be amended to require all GST registered traders to use the ‘Electronic Cash Register’ (ETR) in order to improve domestic compliance.

(vi) Enhance tax payer compliance through the passing into law the unique identifier for each tax payer- The Tax Payer Identification Number (TIN) Bill in 2012.
This number is mandatory and will track all transactions undertaken by a tax payer with the National Revenue Authority so as to enhance accurate assessment and payment of taxes on a timely basis.

Other revenue enhancing measures include: (a) the full operation of an automated Domestic Tax Department, merging the traditional Income Tax, Goods and Services Tax and Local Excise Unit of the Customs and Excise Department into a single operational unit.
(b) the granting of additional powers to the National Revenue Authority to conduct forensic investigation so as to detect fraud and other tax evasive activities and practices.

Fiscal Regime for Extractive Industries 90.

Mr. Speaker, the opportunities provided by developments in the minerals sector must be exploited prudently in order to assist with the national ambitions in infrastructure development and poverty reduction.
In this regard, Government will consider in 2012 the findings and recommendations in the IMF Fiscal Affairs Department recent report on Implementing Fiscal Reforms for Extractive Industries.

Recommendations as approved by Cabinet will be incorporated in the 2012 Finance Bill.

Review of Non-Tax Revenues collected by MDAs 91.


Mr. Speaker, Honourable Members, our non-tax revenue laws have become obsolete and the rates applied for various licenses, charges and fees are so low that the cost of collection far exceeds the actual revenue collected.
I will therefore, be proposing in the 2012 Finance Bill upward revisions of non- tax rates, including those levied by the Ministry of Works, Housing and Infrastructure, Magistrate and High Courts, Registrar and Administrator General’s Department and Pharmacy Board.

These new rates will, upon approval by Cabinet, also be incorporated in the Finance Bill 2012.
Expenditure Proposals Mr. Speaker, Honourable Members, public expenditure in 2012 will be 92. underpinned by the following Government priorities: (i) Continue implementation of the Comprehensive Pay Reform - Pay reform is an important ingredient of the ongoing public sector reform programme.
In this respect, Government has prepared a comprehensive, the pay implementation of which started in September 2011. structured, multi-year reform, (ii) Provide adequate resources for the Presidential, Parliamentary and Local Council elections - The conduct of credible elections is seen as paramount for the stability and progress of our country.

In (iii) (iv) this regard, Government is committed to ensuring that adequate resources are provided to ensure the smooth running of the general elections in 2012.
Support completion of ongoing infrastructure projects - The poor state of our infrastructure was identified in the “Agenda for Change” as a binding constraint on economic growth and socio-economic development.

Since 2009, a number of infrastructure projects were started; hence the focus in 2012 will be the completion of these ongoing projects.

Social Safety Nets - Government remains concerned about the social and economic consequences of rising food and fuel prices in the country.
Additional support is, therefore, being sought from development partners for the provision of safety nets for the poor and vulnerable, especially as a way of responding to exogenous shocks.

As a first step, Government, with support from the World Bank, is currently reviewing the efficiency and effectiveness of existing social safety net programmes with a view to strengthening and consolidating them.

This review will help to formulate options for improved safety net systems and their financing.
The implementation of new programmes is expected to start in 2012.

Initially, these programmes will be fully financed by additional project support from development partners.

In the mean time, Government will continue to implement the Free Healthcare Initiative to ensure greater access to basic health services by a greater proportion of the vulnerable population in all corners of the country.
(v) Establishment of a Contingency Fund: A Contingency Fund will be established to take care of unplanned/unbudgeted expenditures.

For 2012, the budgetary provision in Contingency Fund is to handle security-related expenditures for the Presidential, Parliamentary and Local Councils elections.

93.

On the basis of the forgoing, total expenditure and net lending for FY 2012 is projected at Le2.8 trillion (24.0 percent of GDP), compared to Le2.6 trillion (26.7 percent of GDP) for FY 2011.
Of this total, recurrent expenditures are budgeted at Le1.8 trillion (15.6 percent of GDP) and capital expenditures, Le1.0 trillion (8.6 percent of GDP).

Wages and Salaries 94.

Mr. Speaker, the Government wage bill is budgeted to increase from Le650.3 billion in 2011 to Le798.3 billion in 2012.

The increase in the wage bill of Le148 billion will cover a yet to be determined increase in salary for public servants with effect from July 2012 and the recruitment of 1000 police and 300 military officers.

95.
95.

To keep real incomes of pensioners in the Government payroll from continued decline, recommendations will be made to Cabinet for the enhancement of annual pensions through indexation and/or other modalities.

Furthermore, the computation of gratuities on retirement and death, last basic salary earned by the 96. which hitherto was based on the retiree/deceased, would now be based on the new composite salary.

Interest Payments 97.


Interest payments on public debt are projected to amount to Le 259.9 billion (2.2 percent of GDP).

Interest payments on domestic debt will amount to Le 234.5 billion (2.0 percent of GDP, reflecting the higher domestic interest rates.

Non-Salary, Non-interest Recurrent Expenditures 98.

A total of Le751.4 billion is allocated to cover non-salary, non-interest recurrent expenditures in 2012, compared to Le676.0 billion in 2011.
Of this amount, Goods and Services expenditure is budgeted at Le360.8 billion and transfers to local councils, Le82.2 billion.

Capital Expenditures Capital expenditures are budgeted at 1.0 trillion (8.6 percent of GDP).

99.

Of this, foreign financed capital spending will decline from Le758.6 billion (7.9 percent of GDP) in 2011 to Le683 billion (5.9 percent of GDP) in 2012.

However, this figure may likely be revised upwards as new commitments with development partners are made.

100.
100.

Domestic funded capital expenditure is increased from Le236.2 billion (2.5 percent of GDP) to Le318.1 billion (2.7 percent of GDP) to fund the completion of ongoing projects in roads, water and energy to accelerate growth, create jobs and reduce poverty.

The sectoral distribution of foreign and domestic capital expenditures together with recurrent expenditures is detailed below.

Recurrent and Capital Expenditure Allocations by Sector 101.
Mr. Speaker, the sectoral distribution of non-salary, non-interest recurrent, domestic and foreign capital expenditures, consistent with the strategic priorities of the “Agenda for Change”, is as follows: Agriculture 102.

The agriculture sector is allocated Le130.4 billion.

An amount of Le21 billion is allocated from the recurrent budget to support agricultural services including Le13.2 billion for food security activities.

103.
103.

Transfers to Local councils for agriculture services will amount to Le12.9 billion.

An additional Le3.2 billion is provided from the domestic capital budget as counterpart funds towards various agricultural projects including the rehabilitation of selected agricultural stations.

104.
104.

Our development partners are expected to disburse Le100.4 billion in the Smallholder support of various agricultural projects, Commercialisation Project, the Rural Private Sector Development Project, and the Agriculture Sector Rehabilitation Project.

including Energy and Water 105.

The Energy and Water sector will receive Le206.3 billion, accounting for 12.6 percent of the total budget.

An amount of Le7.8 billion is from the recurrent budget, of which Le4.3 billion is for the water sector.

106.
106.

An amount of Le75.7 billion is allocated from the domestic capital budget to support energy and water projects.

Of this total, Le7.9 billion is provided for the completion of water projects including the construction of wells and gravity fed systems from Calaba Town to Masiaka; rehabilitation of water supply systems in Mile 91, Pujehun and other selected towns; and the installation of pipes and fittings for various road projects.
The balance of Le67.8 billion is allocated to the energy sector to support the electrification of district and provincial headquarter towns including the procurement of thermal plants and transmission and distribution materials as well as to meet counterpart funding requirements for solar street lighting in Freetown and thirteen municipalities.

107.

External funding for Energy and Water projects will amount to Le122.9 billion in 2012.
Of this amount, donors will disburse Le50.5 billion for water projects and Le72.4 billion for energy projects.

Roads and Aviation 108.

The road sector is allocated a total Le395.4 billion, representing 24.1 percent of the total budget.

Transfers to the Road Maintenance Fund for the regular maintenance of roads and streets will amount to Le44.3 billion.

109.
An amount of Le157.9 billion is allocated from the domestic capital budget, of which Le72.2 billion is counterpart contribution and start-up funding towards the construction and rehabilitation of Highways including the Kenema–Pendembu Road, Lumley-Tokeh Road, Lungi-Port Loko Road, Matotoka-Sefadu Road and the Makeni-Kamakwe Road; Le1.0 billion for the rehabilitation of feeder roads in Koinadugu, Bonthe, Kono and Kailahun; Le84.7 billion for the rehabilitation of streets in Freetown and the District headquarter towns.
In addition, Government is allocating Le6.3 billion towards the ongoing rehabilitation of the Lungi International Airport Terminal.

110.

Our development partners have committed Le193.1 billion, of which, Le106.5 billion is for the construction of highways and Le59.5 billion for feeder roads.

Education 111.

A total of Le138.9 billion is allocated to the education sector.
An amount of Le84.4 billion is allocated for education services from the recurrent budget, of which, Le14.2 billion is for secondary education.

112.

Grants to tertiary educational institutions will amount to Le52 billion.

Government will also provide additional resources to the University of Sierra Leone and Njala University in lieu of an increase in tuition fees.

The additional resources required to fill the gap between the current and proposed tuition fees is estimated at Le25.4 billion.
Transfers to local councils for education services will amount to Le32.4 billion.

113.

Government’s counterpart contribution to donor funded projects in the education sector including Capacity building for technical and vocational education and the rehabilitation of Njala University and the Youth Employment Support project will amount to Le940 million.

114.

Disbursements from our development partners in support of projects in the education sector are projected at Le21.1 billion.

Health 115.
Health 115.

The Health sector is allocated a total of Le110.7 billion, of which, Le30.2 billion is from the recurrent budget.

Of this, Le10.9 billion is for Reproductive and Child Health Care and Le3.4 billion for the procurement of drugs and medical supplies.

Transfers to local councils for health services will amount to Le30.5 billion.

116.
116.

Government’s counterpart contribution towards health sector projects including strengthening District Health Services and the rehabilitation of Government hospitals will amount to Le2.5 billion.

117.

Our development partners will disburse about Le47.5 billion in support of projects in the health sector.

118.

Mr. Speaker, consistent with our commitments, the total budgetary allocations to the strategic priorities of the Agenda for Change account for 60 percent of the total 2012 budget.
I will now describe the rest of the allocations to the other sectors.

Security Services 119.

The security sector is allocated the sum of Le110.9 billion from the recurrent budget.

Of this, Le57 billion is for Defence including Le15.2 billion for rice supplies to the military; Le34.2 billion to the Police; Le9.8 billion to the Prisons Department; Le4.1 billion for the National Fire Force; Le2.4 billion for the Office of National Security and Le1.8 billion for the Immigration Department.
An amount of Le7.6 billion is allocated from the domestic capital budget for the rehabilitation of various facilities for the military (Le4.8 billion); police (Le1.0 billion) and prisons (Le1.0 billion).

Elections 120.

Mr. Speaker, Honourable Members, Sierra Leone is having its third post-war elections in 2012.
The Election Programme is concentrating on three key strategic areas of electoral support: capacity building of electoral management bodies; public confidence and trust in the electoral process; and electoral disputes and electoral security.

The planned expenditures for 2012 total US$11.3 million, excluding project from development partners management cost and technical advice.

Government is providing a maximum of US$18 million (equivalent to Le80.4 billion) to NEC in 2012.
In addition, the Government has made allocations to the Political Parties Registration Ccommission (PPRC), and for elections security and contingencies, with total funding for elections related activities in 2012 standing at US$24 million (equivalent to Le107.2 billion).

Good Governance 121.


An amount of Le1.3 billion is allocated to the Anti-Corruption Commission, Le1.5 billion to Political Parties Registration Commission; Le3.0 billion to the Audit Service; Le1.3 billion to the National Commission for Democracy, Le4.6 billion for Statistics Sierra Leone, and Le11.4 billion to Parliament including Le6.1 billion for constituency facilitation allowance.

Other Ministries, Departments and Agencies (MDAs) 122.
From the non-salary recurrent budget, an amount of Le16.4 billion is allocated to the Ministry of Foreign Affairs and International Cooperation; Le863.5 million to the Ministry of Fisheries and Marine Resources; Le3.9 billion to the Ministry of Youth Employment and Sports; Le5.4 billion to the Ministry of Social Welfare, Gender and Children’s Affairs; Le2.6 billion to the Ministry of Lands, Country Planning and the Environment; Le2.1 billion to the Ministry of Labour and Social Security; Le4.3 billion to the Ministry of Mines and Mineral Resources; Le4.1 billion to the Ministry of Transport and Aviation; Le6.4 billion to the Ministry of Trade and Industry; Le3.1 billion to the Ministry Local Government and Rural Development; Le905.3 million to the Ministry of Political and Public Affairs; Le2.8 billion to the Ministry of Information and Communication; Le2.4 billion to the Office of the Chief of Staff and Le557.2 million to the Ministry of Tourism and Cultural Affairs.
Full details of these and all other MDA allocations are annexed to this Statement.

Meanwhile, it is expected that some of these ministries, in particular, revenue generating MDAs will be accorded priority in allocating any additional domestic and donor resources to be acquired during the course of the year.

Arrears of Subscriptions to International Organisations 123.
Mr. Speaker, the estimated outstanding obligations of subscriptions to international organisations which span as far back as the 1990s are about US$30.96 million.

To normalize our relations and enhance our participation in regional and international bodies, my Ministry will work with MDAs to negotiate treatment of the arrears to seek full or partial cancellation through short, medium and long term arrangements.

124.
124.

In this regard and to comprehensively programme payments to international organisations within the Medium Term Expenditure Framework and consistent with the foreign exchange cash flow of the Bank of Sierra Leone, all budgetary provisions and payments of subscriptions to regional and international organizations will be consolidated and centralized at the Ministry of Finance and Economic Development, effective January 2012.
Detailed quarterly estimates will be prepared for each institution and the payments will be processed using the same procedures adopted in making debt service obligations to external creditors.

Overall Budget Deficit and Financing 125.

Mr. Speaker, the overall budget deficit, excluding grants, is envisaged to decline from 11.8 percent in 2011 to 10.4 percent in 2012.

The deficit will be largely financed from external sources projected at Le348.4 billion (3.0 percent of GDP).

126.
126.

Domestic financing from banks and the nonbanking financial sector is limited at Le166.4 billion (1.4 percent of GDP).

Direct credit to the Government by the Bank of Sierra Leone (BSL) is now limited to 5 percent of previous year’s domestic revenue, as required by Law.

Thus, the main source of domestic financing is from commercial banks, other financial institutions, and the non- bank public.

127.
127.

Government borrowing from the commercial banks to finance the deficit is projected at Le66.6 billion (0.6 of GDP).

Borrowing from the non-bank public is projected at Le33.3 billion (0.3 % of GDP).

Plans are underway for the introduction of medium-term bonds for infrastructure development.

128.

Proceeds from the privatization of the Rokel Commercial Bank, the National Insurance Company and the Sierra Leone Ports Authority, projected at Le34.8 billion, will also be used to finance the deficit.
VIII.

Risks to the 2012 Budget (i) Global food and fuel price increases 129.

Mr. Speaker, Honourable Members, any sharp increase in international prices of food and fuel in 2012 will place considerable pressure on the budget, through increased spending on the provision of diets for hospitals, prisons and schools.

There will also be a need to protect vulnerable groups through direct budget subsidies and other safety nets.
In 2011, a 40 percent average increase in food prices and a 30 percent increase in fuel prices resulted in an additional Le110 billion of spending.

At the same time, the reduction in excise taxes on fuel and in Road User Charges is estimated to have caused a revenue loss of approximately Le200 billion in 2011.
If this situation were to persists in 2012, compensating revenue measures would be required to offset the impact on the budget to allow its full implementation (ii) Implementation of the Comprehensive Pay reform The Multi-Year Pay Reform Strategy (2011-15) outlines a 130. comprehensive approach to reforming the public sector in line with improving service delivery.
The pay reform also involves implementation of key cost saving measures including regrading, rightsizing, targeted employment, payroll cleaning, etc.

Failure to implement these reforms will lead to significant shortfall in both internal and external resources to support continued pay adjustment.

(iii) Unpredictability of External Budget Support 131.

Budgetary support, in the form of grants and loans, continues to be an important source of financing for the Government.
However, disbursements continue to be somewhat untimely and unpredictable.

(iv) Slow rate of execution of donor funded projects.

132.

Mr. Speaker, although there have been improvements in the overall capacity to absorb aid, a number of projects have continued to experience substantial delays or cancellation of disbursements due to weak administrative and project management capacity, institutional constraints as well as externally generated constraints.

133.
133.

All of these risks have the tendency to increase project costs, and overburden the Government with unplanned expenditures.

IX.

Conclusion 134.

Mr. Speaker, Honourable Members, 2011 performance outcomes and the 2012 budget and its medium term perspective reflect the directions provided by His Excellency the President in his “Agenda for Change”.

135.

Our generation has faced daunting challenges and defining moments.
Fortunately, the “Agenda for Change” provided a new direction for our future, building on the past and making good on promises.

We are delivering on our commitments: enhancing agricultural productivity; improving road network; increasing access to electricity; providing good health and quality education; improving business environment; and building a productive and sustainable economy, while creating jobs, restoring and consolidating the peace and stability.
It is to that vision that this Budget is formulated and to that cause our Government has demonstrated its commitments.

136.

Mr. Speaker, Honourable Members, I will like to end this Statement by expressing my profound gratitude and appreciation to all those who have supported budget execution in 2011, including our development partners and budget oversight institutions.
My thanks also go to all those who in diverse ways have contributed in the preparation of the 2012 Budget, from the many organisations and groups who participated in the policy hearings to Sierra Leoneans from every corner of the country who aired their views and opinions in the print and electronic media.

Their contributions, their views and concerns in no small way shaped the Budget I am tabling today.

137.
137.

I would also like to thank my colleagues in Cabinet and Members of this House who provided advice and insights.

In particular, I want to acknowledge the contribution of the Chairman and Members of the Parliamentary Finance Committee.
Above all, I want to thank my Deputies and staff of the Ministry of Finance and Economic Development, the Governor, Management and Staff of the Bank of Sierra Leone, the Acting Commissioner General, Management and Staff of the National Revenue Authority, and heads of other MDAs for their invaluable work in finalising these estimates.

The Government Printer is applauded for rising to the occasion in preparing the printed statement and estimates on time.

138.
138.

Mr. Speaker, Honourable Members of Parliament, I commend the 2012 Appropriation Bill to this House.

139.

I thank you all for your time and may God bless Sierra Leone.

BUDGET PROFILE In millions of Leones (Le 'm) PARTICULARS Total Revenue and Grants Domestic Revenue Income Tax Department Corporate Tax Personal Income Tax - incl.
Govt PAYE Other Taxes Goods and Services Tax Import GST Domestic GST Customs and Excise Department Import Duties Excise Duties on Petroleum Products Other Excise Duties Other Revenue - incl.

Freight Levy Mines Department Royalty on Rutile Royalty on Bauxite Royalties on Diamond and Gold Royalty on Iron Ore Licences etc.

Other Departments Royalties etc.


on Fisheries Parastatals Other Revenues Road User Charges & Vehicle Licences Grants Programme o/w Debt Relief Assistance o/w HIPC - $' m o/w Japanese Food and Oil Aid - $'m o/w Global Fund Salary Support o/w External Donors Budgetary Support 4/ o/w UK DFID - $' m o/w EU - $' m o/w World Bank - $' m o/w Kuwaiti Fund Refund/UNPBF Repayment - $'m o/w African Dev.
Bank - $' m Peace Building Fund Elections Basket Fund Projects Project - Other Projects GOVERNMENT OF SIERRA LEONE ANNEX 1 - BUDGET PROFILE FOR FY2010 - 2014 FY2010 FY2010 FY2011 FY2011 FY2012 FY2012 FY2013 FY2013 FY2014 FY2014 Actual Q1 - 4 Jan - Dec % of GDP Le7,597.2b Estimate Q1 - 4 Jan - Dec % of GDP Le9,578.6b Budget Q1 - 4 Jan - Dec % of GDP Le11,629.5b Indicative Q1 - 4 Jan - Dec % of GDP Le13,217.9b Indicative Q1 - 4 Jan - Dec % of GDP Le13,878.9b $4.98 $6.95 $0.00 219,211 $19.77 $27.98 $0.00 $0.00 $ $5.53 $11.00 21,247 249,952 $25.80 $20.45 $2.50 $0.39 $ 242,303
381,893 343,828 18,321 4,730 15,014 242,303 1,038 4,697 10,444 178,812 47,312 79,267 13,848 5,287 60,132 44,307 696,913 234,718 21,924 $4.91 $0.00 19,758 193,036 $19.90 $16.94 $0.00 $0.00 $ 638,080
50,182 94,352 16,154 10,458 67,740 46,908 638,080 217,138 23,077 $4.91 $0.00 0 194,061 $18.20 $16.70 $0.00 $0.00 $ $0.00 $0.00 0 197,942 $18.20 $16.70 $0.00 $0.00 $ Total Expenditure and Lending minus Repayments 2,073,762 27.3% 2,558,450 26.7% 2,810,689 24.2% 2,867,147 21.7% 2,973,643 21.4% In millions of Leones (Le 'm) PARTICULARS Recurrent Expenditure Wages & Salaries o/w: Pensions, Gratuities and Other Allowances o/w: Contributions to Social Security Non-Salary, Non-Interest Recurrent Expenditure Goods and Services o/w Social and Economic General and Others o/w National Revenue Authority Statistics - Sierra Leone Defence Expenditure Police Prisons Transfers to Local Councils Grants for Admin.
Expenses Grants for Devolved Functions Grants to Educational Institutions Transfer to Road Maintenance Fund Social Safety Net Fuel Subsidies Elections and Democratisation Domestic contribution National Electoral Commission Security Related Services Foreign contribution Total interest payments Domestic Interest Foreign Interest GOVERNMENT OF SIERRA LEONE ANNEX 1 - BUDGET PROFILE FOR FY2010 - 2014 FY2010 FY2010 FY2011 FY2011 FY2012 FY2012 FY2013 FY2013 FY2014 FY2014 Actual Q1 - 4 Jan - Dec 1,286,475 535,669 34,677 34,674 591,627 426,349 172,416 162,949 24,680 4,106 49,873 30,647 10,464 78,438 1,461 76,977 29,135 51,972 442 0 5,291 5,291 5,291 0 0 159,179 141,930 17,249 % of GDP Le7,597.2b 16.9% 7.1% 0.5% 0.5% 7.8% 5.6% 2.3% 2.1% 0.3% 0.1% 0.7% 0.4% 0.1% 1.0% 0.0% 1.0% 0.4% 0.7% 0.0% 0.1% 0.1% 0.1% 0.0% 0.0% 2.1% 1.9% 0.2% Estimate Q1 - 4 Jan - Dec 1,563,556 650,317 27,738 39,872 676,053 350,552 128,899 127,052 26,802 6,019 54,251 31,261 9,090 81,733 2,835 78,898 48,523 37,465 0 95,444 62,336 17,948 17,948 0 44,388 237,186 216,026 21,160 % of GDP Le9,578.6b 16.3% 6.8% 0.3% 0.4% 7.1% 3.7% 1.3% 1.3% 0.3% 0.1% 0.6% 0.3% 0.1% 0.9% 0.0% 0.8% 0.5% 0.4% 0.0% 0.7% 0.2% 0.2% 0.0% 0.5% 2.5% 2.3% 0.2% Budget Q1 - 4 Jan - Dec 1,809,591 798,306 27,600 44,848 751,415 360,823 136,374 123,469 30,471 4,582 57,020 34,160 9,800 82,176 2,698 79,477 52,038 44,307 0 0 212,071 98,274 80,406 17,868 113,797 259,871 234,523 25,347 % of GDP Le11,629.5b 15.6% 6.9% 0.2% 0.4% 6.5% 3.1% 1.2% 1.1% 0.3% 0.0% 0.5% 0.3% 0.1% 0.7% 0.0% 0.7% 0.4%
 0.4% 0.0% 0.0% 1.8% 0.8% 0.7% 0.2% 1.0% 2.2% 2.0% 0.2% Indicative Q1 - 4 Jan - Dec 1,774,350 907,445 28,980 48,436 664,447 427,459 160,921 155,460 54,080 5,040 62,722 37,576 10,780 91,781 3,014 88,767 61,405 46,908 0 0 36,894 5,200 5,200 0 31,694 202,458 177,000 25,458 % of GDP Le13,217.9b 13.4% 6.9% 0.2% 0.4% 5.0% 3.2% 1.2% 1.2% 0.4% 0.0% 0.5% 0.3% 0.1% 0.7% 0.0% 0.7% 0.5% 0.4% 0.0% 0.3% 0.0% 0.0% 0.0% 0.2% 1.5% 1.3% 0.2% Indicative Q1 - 4 Jan - Dec 1,766,385 916,067 30,429 54,505 749,645 478,838 189,887
 166,765 55,161 5,544 68,994 41,334 11,858 102,508 3,366 99,142 72,458 58,635 0 0 37,206 5,512 5,512 0 31,694 100,672 80,836 19,836 % of GDP Le13,878.9b 12.7% 6.6% 0.2% 0.4% 5.4% 3.5% 1.4% 1.2% 0.4% 0.0% 0.5% 0.3% 0.1% 0.7% 0.0% 0.7% 0.5% 0.4% 0.0% 0.0% 0.3% 0.0% 0.0% 0.0% 0.2% 0.7% 0.6% 0.1% Capital Expenditure and Net Lending 787,287 10.4% 994,894 10.4% 1,001,098 8.6% 1,092,797 8.3% 1,207,258 Development Expenditure Foreign Loans and Grants Loans Grants Peace Building Fund Domestic Lending minus Repayment OVERALL DEFICIT/SURPLUS (-) (+) (on commitment basis) including grants excluding grants basic primary balance 1/ 2/ Adjusted basic primary balance (excl.
PBF Contingency Expenditure Change in Arrears: 787,287 432,178 154,999 276,254 925 355,109 0 (522,181) (1,066,135) (474,778) (474,778) -6.9% (375,273) -14.0% (1,132,747) (92,523) (92,523) -6.2% -6.2% -3.9% (506,844) -11.8% (1,203,758) (147,102) (147,102) -1.0% -1.0% -4.4% (379,508) -10.4% (1,017,588) (39,511) (62,511) -1.3% -1.3% 8.3% 5.6% 2.5% 3.1% 0.0% 2.6% 0.0% 1,207,258 758,564 329,411 429,152 0 448,694 0 -2.9% (345,648) -7.7% (1,004,437) (113,507) -0.3% (113,507) -0.5% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 (115,032) -1.5% (68,440) -0.7% (42,764) -0.4% (10,736) -0.1% (10,951) -0.1% 8.7% 8.7% 5.5% 2.4% 3.1% 0.0% 3.2% 0.0% -2.5% -7.2% -0.8% -0.8% 0.0% GOVERNMENT OF SIERRA LEONE ANNEX 1 - BUDGET PROFILE FOR FY2010 - 2014 FY2010 FY2010 FY2011 FY2011 FY2012 FY2012 FY2013 FY2013 FY2014 FY2014 In millions of Leones (Le 'm) PARTICULARS Domestic Suppliers (Incl.
outstanding commitments of previous year) Govt.
Arrears to Parastatals Wages Arrears 3/ (22,792) (86,829) (5,411) -0.3% -1.1% -0.1% (67,134) - (1,307) -0.7% 0.0% 0.0% (40,037) (1,587) (1,140) Actual Q1 - 4 Jan - Dec % of GDP Le7,597.2b Estimate Q1 - 4 Jan - Dec % of GDP Le9,578.6b Budget Q1 - 4 Jan - Dec % of GDP Le11,629.5b -0.3% 0.0% 0.0% Indicative Q1 - 4 Jan - Dec (7,911) (1,875) (950) % of GDP Le13,217.9b -0.1% 0.0% 0.0% Indicative Q1 - 4 Jan - Dec (8,069) (1,913) (969) % of GDP Le13,878.9b -0.1% 0.0% 0.0% OVERALL DEFICIT (CASH BASIS) Including grants TOTAL FINANCING Foreign Borrowing (Loans) Project Programme External Debt Amortisation Debt Relief Domestic Financing 2/ Bank Central Bank Non- MDRI MDRI Related Deposits Commercial Banks Non-Bank Privatisation and Other Receipts Float o/w: Cheques payable Change in Outstanding Arrears Cheques from 2010 paid in 2011 Unaccounted Financing Gap Memorandum Items: Public Debt Charges o/w External Debt Payments (incl.
HIPC Debt Relief) External Budgetary Support (excl.

HIPC Debt Relief; incl.
PBF) (637,213) -8.4% (443,713) -4.6% (549,608) -4.7% (390,244) -3.0% (356,599) -2.6% 637,213 8.4% 443,713 4.6% 549,608 4.7% 390,244 3.0% 356,599 161,725 222,486 154,999 67,487 (60,761) 0 446,161 454,657 391,625 187,553 204,072 63,032 (8,496) 0 29,327 8,349 20,609 0 369 0 219,940 78,010 286,698 2.1% 2.9% 2.0% 0.9% -0.8% 0.0% 5.9% 6.0% 5.2% 2.5% 2.7% 0.8% -0.1% 0.0% 0.4% 0.0% 2.9% 1.0% 334,016 387,847 387,847 0 (53,832) 0 116,888 73,649 (102,733) (215,733) 113,000 176,382 43,239 34,141 (41,332) 10,631 (0) (51,962) (1) 0 291,018 74,992 271,198 3.5% 4.0% 4.0% 0.0% -0.6% 0.0% 1.2% 0.8% -1.1% -2.3% 1.2% 1.8% 0.5% 0.4% -0.4% 0.0% 3.0% 0.8% 348,388 441,797 334,589 107,208 (93,409) 0 166,378 133,100 66,500 66,500 0 66,600 33,278 34,843 (0) 0 0 0 (0) 0 353,280 118,756 320,002 3.0% 3.8% 2.9% 0.9% -0.8% 0.0% 1.4% 1.1% 0.6% 0.6% 0.0% 0.6% 0.3% 0.3% 0.0% 0.0% 3.0% 1.0% 291,967 364,592 331,678 32,914 (72,625) 0 59,951 47,235 26,000 26,000 0 21,235 12,716 38,327 (0) 0 0 0 (0) 0 275,083 98,083 226,975 2.2% 2.8% 2.5% 0.2% -0.5% 0.0% 0.5% 0.4% 0.2% 0.2% 0.0% 0.2% 0.1% 0.3% 0.0% 0.0% 2.1% 0.7% 288,586 362,984 329,411 33,572 (74,398) 0 68,013 48,242 28,450 28,450 0 19,792 19,771 0 (0) 0 0 0 (0) 0 175,070 94,234 231,514 2.6% 2.1% 2.6% 2.4% 0.2% -0.5% 0.0% 0.5% 0.3% 0.2% 0.2% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 1.3% 0.7% Nominal GDP Figure 7,597,210 100.0% 9,578,591 100.0% 11,629,550 100.0% 13,217,975 100.0% 13,878,874 100.0% Poverty Related Expenditure Exchange Rate Le/US$ 401,955 3,990 497,920 4,300 569,598 4,467 710,000 4,702 746,653
 4,796 1/ Domestic revenue less total expenditure and net lending, excluding interest payments and externally financed capital expenditure 2/ Fiscal Targets 3/ Wages arrears - this is usual provision made to reduce stock of wage arrears.
For FY2011, this was meant for part payment of salary arrears due to Ex-Ambassadors and Diplomatic Staff In millions of Leones (Le 'm) PARTICULARS 4/ External Budgetary Support - this includes GBP2.25 million from DfID to support salaries of Health Sector Workers under the Free Health Care Programme.
GOVERNMENT OF SIERRA LEONE ANNEX 1 - BUDGET PROFILE FOR FY2010 - 2014 FY2010 FY2010 FY2011 FY2011 FY2012 FY2012 FY2013 FY2013 FY2014 FY2014 Actual Q1 - 4 Jan - Dec % of GDP Le7,597.2b Estimate Q1 - 4 Jan - Dec % of GDP Le9,578.6b Budget Q1 - 4 Jan - Dec % of GDP Le11,629.5b Indicative Q1 - 4 Jan - Dec % of GDP Le13,217.9b Indicative Q1 - 4 Jan - Dec % of GDP Le13,878.9b ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget Le' m Le' m % of Total Non Int/Sal Recurr Exp FY 2013 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp FY 2014 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp 1 GENERAL SERVICES 125,093.5 193,071.4 30.3% 148,775.5 23.6% 159,204.2 22.2% 105 Ministry of Political and Public Affairs of which: Office of Diaspora Affairs 106 Office of the Chief of Staff Office of the Director of Operations Strategy and Policy Unit Sierra Leone Small Arms Commission Cabinet Oversight and Monitoring Unit Project Development Unit Communications Unit Extractive Industry Transparency Initiative Secretariat 107 Ministry of Local Government & Rural Development Office of the Perm.
Sec.
Southern Province, Bo o/w District Offices Eastern Province, Kenema o/w District Offices Northern Province, Makeni o/w District Offices 110 Office of the President Office of the Secretary to the President o/w: Commissions of Enquiries National Assets Commission Public Sector Reform Unit (PSRU) Anti-Corruption Commission (ACC) Office of the Ombudsman Independent Media Commission (IMC) Political Parties Registration Commission (PPRC) Law Reform Commission Corporate Affairs Commission Sierra Leone Insurance Commission Local Government Service Commission 1,258.8 72.4 1,443.0 1,071.4 274.4 97.2 - - - - 1,776.2 929.3 249.5 - 355.7 - 241.7 - 11,574.1 7,804.1 - 337.4 390.4 975.4 517.4 370.3 117.4 519.8 - 625.5
14,567.5 7,180.6 1.0% 472.6 0.1% 614.7 0.1% 625.5 0.1% 1,587.3 0.2% 682.9 0.1% 482.1 0.1% 726.0 0.1% 705.2 0.1% 604.8 0.1% 634.2 0.1% 206.5 0.0% 112 Office of the Vice President 2,736.0 2,802.7 0.4% 3,083.0 0.5% 3,391.3 116 Parliament o/w: Constituency Facilitation Allowance Parliamentary Service Commission 117 Cabinet Secretariat 118 Supreme Court 11,166.6 6,718.5 - 0.1%
ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget Le' m Le' m % of Total Non Int/Sal Recurr Exp FY 2013 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp FY 2014 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp 119 Court of Appeal 120 High Court 228.1 314.2 0.0% 345.6 0.1% 380.1 463.3 611.1 0.1% 672.2 0.1% 739.4 121 Audit Service Sierra Leone 2,479.0 3,000.0 0.5% 3,300.0 0.5% 3,630.0 122 Human Resource Management Office 751.2 808.5 0.1% 889.4 0.1% 978.3 123 Public Service Commission 375.0 435.2 0.1% 478.7 0.1% 526.6 124 Law Officers' Department Office of the Solicitor General o/w Justice Sector Coordinating Office Administrator and Registrar General 128 Ministry of Foreign Affairs & International Co-operation Office of the Perm.
Sec.
High Commission, London U.N. Delegation High Commission, Abuja Embassy, Monrovia Embassy, Conakry Embassy, Washington Embassy, Moscow Embassy, Addis Ababa Embassy, Beijing High Commission, Banjul Embassy, Brussels Embassy, Saudi Arabia Embassy, Berlin Embassy, Iran High Commission, Accra Embassy, Libya Embassy, Dakar High Commission, India Sierra Leone Mission, Geneva Embassy, Kuwait 129 Ministry of Finance and Economic Development o/w Subscriptions to International Organisations National Authorising Office 1.8%
695.9 0.1% 117.2 0.0% 117.2 0.0% 652.4 0.1% 1.8% 12,250.1 4,763.7 0.7% 454.7 0.1% 130 National Revenue Authority (NRA) 26,801.7 30,471.2 4.8% 54,079.5 8.5% 55,161.1 131 Revenue Appellate Board ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget % of Total Non Int/Sal
 Recurr Exp FY 2013 Indicative Ceiling % of Total Non Int/Sal Recurr Exp FY 2014 Indicative Ceiling % of Total Non Int/Sal Recurr Exp 132 Accountant General's Department 133 Ministry of Information and Communication o/w: Attitudinal and Behavioural Change Programme Office of Government Spokesman Le' m 1,609.5 2,285.1 84.2 145.4 Le' m 2,020.0 2,818.6 420.0 380.0 0.3% 0.4% 0.1% 0.1% Le' m 2,222.0 3,100.5 462.0 418.0 0.4% 0.5% 0.1% 0.1% Le' m 2,444.2 3,410.6 508.2 459.8 134 National Electoral Commission (NEC) 17,948.2 80,406.0 12.6% 5,200.0 0.8% 5,512.0 137 National Commission for Democracy 512.1 1,300.0 0.2% 1,430.0 0.2% 1,573.0 138 Statistics - Sierra Leone 6,019.0 4,582.2 0.7% 5,040.4 0.8% 5,544.5 139 National Commission for Privatisation (NCP) 1,031.4 831.9 0.1% 915.1 0.1% 1,006.6 140 Mass Media Services 310.4 400.0 0.1% 440.0 0.1% 484.0 141 Government Printing Department 963.9 1,212.3 0.2% 1,333.5 0.2% 1,466.9 142 National Public Procurement Authority (NPPA) 468.2 619.3 0.1% 681.2 0.1% 749.3 143 Justice and Legal Service Commission 73.0 145.7 0.0% 160.3 0.0% 176.3 144 National Commission for Human Rights 744.2 843.0 0.1% 927.3 0.1% 1,020.1 0.3% 0.5% 0.1% 0.1% 0.8% 0.2% 0.8% 0.1% 0.1% 0.2% 0.1% 0.0% 0.1% 2 SECURITY SERVICES 101,786.6 110,935.1 17.4% 122,028.6 19.3% 134,231.5 18.7% 201 Ministry of Defence o/w: Rice for Officers and Other Ranks 205 Ministry of Internal Affairs Office of the Permanent Secretary National Registration Secretariat 206 Sierra Leone Police
 207 Prisons Department o/w: Diets Drugs 208 National Fire Authority o/w: Fire Engine 210 Office of National Security 211 Immigration Department 212 National Drugs Secretariat 10,780.0
ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget Le' m Le' m % of Total Non Int/Sal Recurr Exp FY 2013 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp FY 2014 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp 3 SOCIAL SERVICES 113,498.4 129,588.5 20.3% 152,914.5 24.2% 180,439.1 25.1% 301 Ministry of Education, Science and Technology Office of the Permanent Secretary of which: Grants-in-Aid Planning and Development Services Pre-primary and Primary Education of which: Grants to Handicapped Schools Secondary Education of which: Grants in Aid to Government Boarding Schools of which: Examination Fees to WAEC for WASCE of which: Girl Child Tertiary and Teachers Education of which: Grants to Tertiary Institutions Technical/Vocational Education Physical and Health Education Inspectorate Division Non Formal Education Higher Education, Science and Technology Science and Technology Committee Barefoot Solar Technicians Training Centre Teaching Service Commission 302 Ministry of Youth, Employment and Sports Office of the Permanent Secretary of which: Youth Development
 Programmes Sports Programmes o/w: Sports Competitions Youth Commission 303 Ministry of Tourism and Cultural Affairs (Culture Division) o/w: Monuments and Relics Commission 304 Ministry of Health and Sanitation Administration Division Human Resources Management Primary Health Care Services of which: Malaria Prevention and Control STI/HIV/AIDS Prevention and Control Programme Tuberculosis and Leprosy Control Programme Reproductive and Child Health Care Services of which: Free Health Care Programme National School
 Health Programme Immunization Programme/EPI Reproductive Health/Family Planning 74,839.3 6,365.9 3,021.7 1,326.3 1,562.3 546.4 11,787.1 3,162.2 - 2,105.8 50,638.1 48,522.7 1,048.5 294.4 386.3 480.0 275.0 185.4 490.0 - 1,016.6
ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget %
 of Total Non Int/Sal Recurr Exp FY 2013 Indicative Ceiling % of Total Non Int/Sal Recurr Exp FY 2014 Indicative Ceiling % of Total Non Int/Sal Recurr Exp Secondary Health Care Services (District Hospitals - Bo, Kenema & Makeni) Tertiary Health Care Services (National & Referral Hospitals) Directorate of Hospitals and Laboratory Support Services of which: Drugs and Medical Supplies Health Service Commission 305 Ministry of Social Welfare, Gender & Children's Affairs Office of the Permanent Secretary of which: Grants to Welfare Institutions of which: Diets for Approved School & Remand Home of which: Social Development Programmes of which: Programme for Disabled Persons Gender and Children's Affairs of which : Gender and Children's Programmes Children's Commission of which : Child Orphans Le' m 671.8 796.8 670.2 7,443.7 5,698.9 - 4,650.5 2,949.8 269.8 260.2 181.2 288.0 953.3 241.0 747.4 422.0 Le' m Le' m Le' m 1,821.0 2,160.0 1,245.1 6,370.0 4,799.9 956.0 7,590.8 4,620.2 731.3 705.1 491.1 780.7 944.7 653.2 2,026.0 1,143.8 306 Ministry of Lands, Country Planning and the Environment 1,639.3
 2,563.2 0.4% 3,024.6 0.5% 3,569.0 308 National Commission for Social Action 317.2 465.1 0.1% 548.8 0.1% 647.6 309 Dental and Medical Board 345 Pharmacy Board Services 4 ECONOMIC SERVICES 139.8 209.0 0.0% 246.7 0.0% 291.1 1,872.0 1,900.0 0.3% 2,242.0 0.4% 2,645.6 101,388.3 103,130.4 16.2% 116,319.6 18.4% 140,540.7 19.6% 401 Ministry of Agriculture, Forestry and Food Security Office of the Permanent Secretary o/w: National Agricultural Training Centre Crop Division Food Security Division Forestry Conservation
 Division Livestock Division Agricultural Engineering/Land and Water Development Division Planning, Evaluation, Monitoring and Statistics Division (PEMSD) Agricultural Extension Services Ministry of Fisheries and Marine Resources 690.4 863.5 0.1% 1,018.9 0.2% 1,202.3 403 Ministry of Mines and Mineral Resources Office of the Permanent Secretary Mines Division o/w: National Minerals Agency Geological Surveys of which: Mining Cadastre 3,402.7 431.3 964.7 - ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget Le' m Le' m % of Total Non Int/Sal Recurr Exp FY 2013 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp FY 2014
 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp 404 Ministry of Transport and Aviation Office of the Permanent Secretary of which: Vehicles Meteorological Department 405 Ministry of Tourism and Culture (Tourism Division) of which: Grant to National Tourist Board 406 Ministry of Energy and Water Resources Office of the Permanent Secretary Water Services of which: Grant to SALWACO Radiation Protection Board 407 Ministry of Labour and Social Security of which: Programme for the Aged and Vulnerable
 Persons 408 Ministry of Works, Housing and Infrastructure Office of the Permanent Secretary Architectural, Design, Construction and Maint, Div.
of which: Repairs and Maintenance of Government Buildings Civil Engineering Works Division Mechanical Division Housing Division of which: Rent and Rates 409 Ministry of Trade and Industry Office of the Perm.

Sec.
of which: Sierra Leone Standards Bureau of which: Sierra Leone Investment and Export Promotion Agency Industrial Planning and Development Department of Co-operatives 411 Road Maintenance Fund Road Maintenance Administration Sierra Leone Roads Authority Road Maintenance Activities 412 National Telecommunications Commission (NATCOM) 8,293.1 7,967.3 1,627.4 325.8 1,267.0 403.4 8,640.8 6,077.0 2,208.8 1,898.2 355.0 2,414.2 700.0 5,876.0 1,083.7 3,304.7 226.6 275.7 166.8 1,045.1 396.8 10,350.6 9,818.2 836.5 1,110.8 331.0 201.4 37,464.8 - - - - 0.7%
18,763.2 3.5% 23,454.0 7.4% 58,635.0 5,863.5 0.7% 3.0% 23,454.0 3.7% 29,317.5 100.0 0.0% 118.0 0.0% 139.2 415 Sierra Leone Maritime Administration (SLMA) 1,548.6 1,598.2 0.3% 1,885.9 0.3% 2,225.4 416 Civil Aviation Authority 439.1 525.6 0.1% 620.2 0.1% 731.9 418 Sierra Leone Agricultural Research Institute (SLARI) 1,857.8 2,937.0 0.5% 3,465.7 0.5% 4,089.5 420 Sierra Leone Environment Protection Agency (SLEPA) 496.8 601.8 0.1% 710.1 0.1% 837.9 0.8% 0.7% 0.5% 0.1% 0.3% 0.2% 1.5% 0.4% 0.8% 0.7% 0.2% 0.4% 0.2% 1.0% 0.2% 0.4% 0.1% 0.1% 0.0% 0.2% 0.1% 1.2% 1.1%
 0.1% 0.4% 0.1% 0.0% 8.2% 0.8% 3.3% 4.1% 0.0% 0.3% 0.1% 0.6% 0.1% ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget Le' m Le' m % of Total Non Int/Sal Recurr Exp FY 2013 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp FY 2014 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp 5 MISCELLANEOUS SERVICES 12,721.3 849.0 0.1% 933.9 0.1% 1,027.3 Miscellaneous Services 501001 Miscellaneous Services - Secretary to the President 501002 Miscellaneous Services - General 501003 Miscellaneous Services - Accountant-General's Office 6 CONTINGENCY FUND Elections Security Related Expenditures 12,721.3 4,895.6 5,970.0 1,855.7 849.0 220.0 369.0 260.0 - - 17,868.0 17,868.0 0.1% 0.0% 0.1% 0.0% 2.8% 2.8% 933.9 242.0 405.9 286.0 - - 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 1,027.3 266.2 446.5 314.6 - - 0.1% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 7 TRANSFERS TO LOCAL COUNCILS 81,732.9 82,175.7 12.9% 91,780.7 14.6% 102,508.3 14.3% Grants for General Administrative Expenses Local Government Grants Grants for Devolved Functions Sensitisation on Fire Prevention Services Education Services Administration Pre-primary and Primary Education of which: Examination Fees to WAEC for NPSE of which: Govt.
and Govt.
Assisted Schools School Fees Subsidy Textbooks Teaching and Learning Materials Secondary Education of which: Examination Fees to WAEC for BECE of which: Textbooks of which: Science Equipments School Supervision Government Libraries Education Development Youths and Sports Services Sports Competition Youths Division Solid Waste Management Services Health Care Services District Peripheral Health Care Services (PHCs) Secondary Health Services (District Hospitals except, Bo, Kenema & Ma Tertiary Health Care Services Social Welfare, Gender and Children's Affairs Social Welfare Division Gender and Children's Affairs Division Agriculture and Food Security Services Fisheries and Marine Resources Water services Rural Water Services 4.8%
2.3%
ANNEX 2 - NON SALARY, NON INTEREST RECURRENT INDICATIVE BUDGETARY CEILINGS FOR FY 2011 - 14 Details FY 2011 Estimate FY 2012 Budget Le' m Le' m % of Total Non Int/Sal Recurr Exp FY 2013 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp FY 2014 Indicative Ceiling Le' m % of Total Non Int/Sal Recurr Exp Total Non Salary, Non Interest Recurrent Expenditure Provisions Goods & Services Social and Economic General and Others o/w National Revenue Authority Statistics - Sierra Leone Defence Expenditure Police Prisons Transfers to Local Councils Grants for Admin.
Expenses Grants for Devolved Functions Grants to Educational Institutions Transfer to Road Fund Elections and Democratisation - National Electoral Commission Contingency Fund - Elections Security Related Expenditures 536,221.0 350,552.4 128,899.2 127,051.8 26,801.7 6,019.0 54,251.0 31,260.8 9,089.6 81,732.9 2,835.0 78,897.9 48,522.7 37,464.8 17,948.2 - - - 0.0% 0.5% 100.0% 66.7% 26.4% 23.2% 7.7% 0.8% 9.6% 5.8% 1.7% 14.3% 0.5% 13.8% 10.1% 8.2% 0.8% 0.0% ANNEX 3 - DEVELOPMENT EXPENDITURE ESTIMATES BY MINISTRY, DEPARTMENT AND AGENCY BY PROJECT FOR THE MTEF PERIOD 2012-2014 MINISTRIES/DEPARTMENTS/AGENCIES TYPE OF FINANCE L - LOAN G - GRANT DONORS FY 2012 Budget FY 2013 Indicative FY 2014 Indicative MINISTRY OF POLITICAL AND PUBLIC AFFAIRS Strenghtening Capacity for Diaspora Engagement African Peer Review Mechanism (APRM) OFFICE OF THE CHIEF OF STAFF Sierra Leone Extractive Industry Transparency Initiative MINISTRY OF LOCAL GOVERNMENT AND RURAL
 DEVELOPMENT National Identity Cards System Machine Readable Passports Project Reestablishment of District Offices OFFICE OF THE PRESIDENT Construction of Anti-Corruption Offices Support to Anti-Corruption Commission Open Government Initiative HIV/AIDS Response Project Review and Amendments of Existing Laws - Law Reform Commission HIGH COURT Fast Track of Commercial Court Project HUMAN RESOURCE MANAGEMENT OFFICE Construction of Civil Service Academy Civil Service Reform Project Teacher Records Management
 Improvement Project LAW OFFICERS DEPARTMENT Justice Sector Development Project OARG Modernisation Project AUDIT SERVICE SIERRA LEONE Construction of Office Building for Audit Service Sierra Leone Support to Audit Service Sierra Leone MINISTRY OF FOREIGN AFFAIRS AND INTERNATIONAL COOPERATION Rehabilitation and Refurbishment of Foreign Missions Construction of Office Building for Ministry of Foreign Affiars and International Cooperation MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT Monitoring and Evaluation Activities Support to Public Private Partnership (PPP) Unit Support to NGO Coordination Unit Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm 9,461
IDA AfDB/UNDP IDA GOSL GOSL GOSL GOSL DFID GOSL Global Fund GOSL ICF GOSL EC AfDB DFID ICF GOSL DfID GOSL China GOSL GOSL UNDP G G G G G L G G G G G G G G ANNEX 3 - DEVELOPMENT EXPENDITURE ESTIMATES BY MINISTRY, DEPARTMENT AND AGENCY BY PROJECT FOR THE MTEF PERIOD 2012-2014 MINISTRIES/DEPARTMENTS/AGENCIES TYPE OF FINANCE L - LOAN G - GRANT DONORS FY 2012 Budget FY 2013 Indicative FY
 2014 Indicative West African Monetary Zone WAMZ Medium Term Expenditure Framework (MTEF) Public Expenditure Tracking Survey (PETS) Integrated Public Financial Management Reform Programme Technical Assistance of an Arab Expert in the field of Economics Construction of ECOWAS Depot Support to the National Authorising Office Technical Cooperation Facility NATIONAL REVENUE AUTHORITY Modernisation of Revenue Administration System MINISTRY OF INFORMATION AND COMMUNICATION West African Regional Communications Infrastructure Programme (Fiber Optic Cable) E-Governance Project Modernization and Expansion of network and telecommunication infrastructure of SIERRATEL Implementation of the ECOWAN Programme in Sierra Leone ELECTORAL COMMISSION OF SIERRA LEONE Construction of Regional Warehouses for the Electoral Commission MINISTRY OF DEFENCE Reconstruction/Rehabilitation of Military Facilities SIERRA LEONE POLICE Rehabilitation and Reconstruction of Police Facilities PRISON'S DEPARTMENT Rehabilitation and Reconstruction of Prison's Facilities NATIONAL DRUGS SECRETARIAT Rehabilitation & Reconstruction of the Offices of the National Drugs Secretariat MINISTRY OF EDUCATION SCIENCE AND TECHNOLOGY Institutional and Capacity Building to Technical and Vocational Education Rehabilitation of Njala University College of Sierra Leone Youth Employment Support Project (Capacity Building Component) Education for All - Fast Track Initiative Catalystic Fund Rehabilitation of Magburaka
 Islamic College Rehabilitation of Fourah Bay College (Feasibility Studies) Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm GOSL GOSL GOSL IDA/ADB/DfID BADEA ECOWAS/GOSL EC EC DfID IDA China EBID IDB GOSL GOSL GOSL GOSL GOSL 0 0 0 3,954 514 0 2,234 1,117 6,001 6,001 54,376 10,789 5,000 27,420 11,168 0 0 0 0 0 0 0 0 0 0 IDB BADEA IDA IDA IDB/Saudi Fund BADEA 21,143 607 3,574 5,275 4,316 5,138 2,234 G G G G G L L L L L L G G G G 350 1,400 1,555 200 220 400 0 0 300 300 3,000 1,900
ANNEX 3 - DEVELOPMENT EXPENDITURE ESTIMATES BY MINISTRY, DEPARTMENT AND AGENCY BY PROJECT FOR THE MTEF PERIOD 2012-2014 MINISTRIES/DEPARTMENTS/AGENCIES TYPE OF FINANCE L - LOAN G - GRANT DONORS FY 2012 Budget FY 2013 Indicative FY 2014 Indicative MINISTRY OF YOUTH EMPLOYMENT AND SPORTS Youth Employment Support Project (Cash for Work Component) MINISTRY OF HEALTH AND SANITATION Strengthening of District Health Services Project Refurbishment of Government Hospitals, Furniture and Fittings Reproductive and Child Health Project Phase II (Capacity Building Componenet) Strengthening of Three Tertiary Hospitals In Freetown Primary Health Care Support Project MINISTRY OF SOCIAL WELFARE, GENDER AND CHILDREN'S AFFAIRS Rehabilitation of Remand Home and Approved Schools MINISTRY OF LANDS, COUNTRY PLANNING AND ENVIRONMENT State Lands Management
 Project Lands Registration Project NATIONAL COMMISSION FOR SOCIAL ACTION (NaCSA) Social Action Support Programme I (SASP I) Sierra Leone Community Driven Development Project Support to the Reparations Programme Relief and Resettlement Project MINISTRY OF AGRICULTURE FORESTRY AND FOOD SECURITY Seed Multiplication Project NERICA Rice Dissemination Project Agricultural Sector Rehabilitation Project Rehabilitation and Community Based Poverty Reduction ProjectI -IFAD Rural Private Sector Development Project Palm
 Oil Production Project Rehabilitation of Selected Agricultural Stations Diversified Food Crop Production Biodiversity Conservation Project Rural Finance and Community Improvement Project Support to Smallholder Commercialization Programme Rapid Response Growth Poles Wetlands Conservation West Africa Agricultural Productivity (SL-Phase I) MINISTRY OF FISHERIES AND MARINE RESOURCES Fish Stock Assesment Project Institutional Support to Fisheries Development West Africa Regional Fisheries Project Sierra Leone Maritime Administration Project Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm IDA AfDB GOSL IDA Kuwait Fund BADEA GOSL GOSL ICF AfDB IDB GoSL UNDP GTZ/FAO AfDB AfDB IFAD IDA IDB Japan IDB IDA IFAD IDA IDA IDA IDA EC EC IDA EBID 3,562
G G L L L G L L G G G L L G G G L G G G L G G G G L L ANNEX 3 - DEVELOPMENT EXPENDITURE ESTIMATES BY MINISTRY, DEPARTMENT AND AGENCY BY PROJECT FOR THE MTEF PERIOD
 2012-2014 MINISTRIES/DEPARTMENTS/AGENCIES TYPE OF FINANCE L - LOAN G - GRANT DONORS FY 2012 Budget FY 2013 Indicative FY 2014 Indicative MINISTRY OF MINES AND MINERAL RESOURCES Reconstruction of Regional Mines Offices and Quarters Mineral Sector Technical Assistance Project Mineral Rights Administration Project Support to Mineral Sector Reform Sierra Leone Artisanal Mining Community Development and Sustainable Livelihood Project MINISTRY OF TRANSPORT AND AVIATION Infrastructure Development Project Technical Assistance of an Arab Expert in the field of Civil Aviation Modernization of the Lungi International Airport Terminal Project MINISTRY OF TOURISM AND CULTURE TOURISM DIVISION Lumley Beach Development Project Monuments and Relics Development Project MINISTRY OF ENERGY AND WATER RESOURCES WATER SERVICES DIVISION Kabala Water Supply Project Kambia Water Supply Project Sierra Leone Power and Water Project (Water Component) o/w: Installation of sub-mains in the East End of Freetown Water Supply and Sanitation Project (Bo, Kenema, and Makeni) Water Supply in Six Selected Communities in Sierra Leone (Lungi, Kailahun, Selected Sites in Freetown) Rehabilitation of Portable Water Supply in Portloko and Koidu New Sembehun (Feasibility Studies) Rehabilitation of Rural Water Supply (Mile 91/Yonibana, Pujehun, and other Selected Towns) Construction of Wells and Gravity-Fed Sysytems - Cabala Town to Masiaka Communities Improvement of Water Supply in Sumaila Town and Sourie Town in
 Freetown Installation of Pipes and Fittings for various Roads Projects in Freetown (GUMA) ELECTRICITY DIVISION Solar Street Light Project in Freetown and 13 Municipalities Project Implementation Unit (PIU) Bumbuna Hydro Electric Project Environmental and Social Management Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm Foreign Le'm Domestic Le'm GOSL IDA EC DfID IDA IDA BADEA GOSL GOSL BADEA/IDB JICA IDA ADB/OFID EXIM Bank, India Kuwait Fund GOSL GOSL GOSL GOSL EBID GOSL IDA 9,214 0 585 2,680 2,234
GOSL GOSL EBID GOSL IDA G G G G L G L G G L L G L G ANNEX 3 - DEVELOPMENT EXPENDITURE ESTIMATES BY MINISTRY, DEPARTMENT AND AGENCY BY PROJECT FOR THE MTEF PERIOD 2012-2014 MINISTRIES/DEPARTMENTS/AGENCIES TYPE OF FINANCE L - LOAN G - GRANT DONORS FY 2012 Budget FY 2013 Indicative FY 2014 Indicative Western Area Power Generation Project I&II Electrification of District and Provincial Headquarter Towns: o/w: Thermal Plants o/w: Rehabilitation of Bo/Kenema Power Services Transmission and Distribution Materials Reinforcement of Medium and Low Voltage Distribution Network (Western Area) Power and Water Project (Energy Component) MINISTRY OF WORKS, HOUSING AND INFRASTRUCTURE ROADS HIGHWAYS: Reconstruction of the Kenema - Pendembu Road
 Construction of Goderich-Waterloo Rural Coastal Road: Tokeh - Lumley (Peninsular) Road Freetown-Conakry Highway (Rogbere-Pamelap) Priority Infrastructure Programme Port Loko - Lungi Road Rehabilitation of Matotoka - Sefadu Road Rehabilitation of the Makeni - Kamakwie Road Widening of the Calaba Town - Mamamah Highway (Studies) Matotoka - Koidu/Bandajuma - Mano River Bridge Roads (Feasibility Studies) Reconstruction of Pendembu - Kailahun Town Road Institutional Support to SLRA - Compensation and
 Consultancy Payments for Various Roads Projects FEEDER ROADS: Rehabilitation of Rural Ferries Rehabilitation of Feeder/Rural Roads - Koinadugu-Kono-Bonthe-Kailahun Feeder Roads under other sectoral projects: Rural Infrastructure Development Project European Union Funded Rural Feeder Roads Rehabilitation and Community Based Poverty Reduction Project Agricultural Sector Rehabilitation Project Infrastructure Development Project Pro-Poor Growth for Peace Consolidation Programme (GPC) - German Government Funded NERICA Rice Dissemination Project Social Action Support Project (SASP) Rural and Private Sector Development Project (RADP) BADEA/SFD GOSL GOSL GOSL GOSL IDB IDA IDB/KFAED/ OFID/KUWAIT/ EC EC AfDB/GOSL AfDB/OFID/GOSL Multi/GOSL GOSL ADB IDB/GOSL EC GOSL IDA IDB EC IFAD AfDB IDA German AfDB AfDB IDA Foreign Le'm 12,215 0 0 0 0 12,428 17,417 193,111 193,111 106,465 22,777 Domestic Le'm 0 60,703 40,203 1,154 20,500 300 0 158,573 157,943 72,240 3,200 Foreign Le'm 14,316 0 0 0 0 14,565 20,411 231,744 231,744 106,526 26,694 Domestic Le'm 18,146
6,105 4,882 10,853 6,750 10,238 225 3,600 18,146 25,127 563 1,103 4,500 7,421 1,126 225 901 0 0 0 0 0 0 0 0 0 0 Foreign Le'm Domestic Le'm 0 76,827 50,882 1,461 25,945 380 0 200,694 199,897 91,429 4,050 7,594 11,517 253 4,050 20,414 28,268 633 1,240 5,063 8,348 1,267 253 1,014 ANNEX 3 - DEVELOPMENT EXPENDITURE
G G L G G G L G ANNEX 3 - DEVELOPMENT EXPENDITURE ESTIMATES BY MINISTRY, DEPARTMENT AND AGENCY BY PROJECT FOR THE MTEF PERIOD 2012-2014 MINISTRIES/DEPARTMENTS/AGENCIES REHABILITATION OF STREETS IN DISTRICT HQ TOWNS AND FREETOWN: Construction of Hillside Bye-pass Road Freetown Widening of Wilkinson Road into Dual Carriage Way Widening of Lumley Roundabout to Hillcut Junction into Dual Carriage Way Rehabilitation of 25 km of Selected Streets in Freetown Rehabilitation of Selected Streets in City and District Headquarter Towns Widening of Hillcut Junction to Pademba Road into Dual Carriage Way (Studies) BUILDINGS Rehabilitation of State House and Presidential Lodges Rehabilitation of Boundary Wall of Parliament MINISTRY OF TRADE AND INDUSTRY Growth Centre Programme Support to Standards Bureau Private Sector Development Enhanced Integrated Framework (EIF) National Implementation Unit Institutional Development and Capacity Building SIERRA LEONE AGRICULTURAL RESEARCH INSTITUTE Teko Livestock Research Centre Kenema Forestry and Tree Crops Research Centre MISCELLANEOUS Unallocated Development Expenditure LOCAL COUNCILS Local Government Development Grants Decentralized Service Delivery Project Reproductive and Child Health Project TOTAL Total Foreign Loans Total Foreign Grants GoSL GRAND TOTAL TYPE OF FINANCE L - LOAN G - GRANT DONORS L G L G G OPEC/BADEA/ GOSL GOSL GOSL GOSL GOSL GOSL GOSL GOSL GOSL GOSL EC GOSL GOSL GOSL GOSL GOSL IDA IDA IDA FY 2012 Budget FY 2013 Indicative FY 2014 Indicative Foreign Le'm 27,136
 27,136 0 0 0 0 0 0 0 0 3,398 0 0 3,398 0 0 0 0 0 0 0 Domestic Le'm 84,702 7,500 4,780 21,084 5,989 44,849 500 630 400 230 1,720 110 900 210 300 200 700 500 200 193 193 Foreign Le'm 31,801 Domestic Le'm 95,289 Foreign Le'm 37,269 Domestic Le'm 139
In Millions of Leones ANNEX 4 - POVERTY RELATED EXPENDITURE - FY2012 BUDGET Head Ministry/Department/Agency 2012 Budget Non-Salary, non-Interest Recurrent 2012 Budget Poverty Related Expenditures Domestic Development Non-Interest Non- Salary Domestic Development Total Office of the Chief of Staff Ministry of Political and Public Affairs Ministry of Local Government & Rural Development Office of the President Recurrent & Devt: Anti-Corruption Commission (1100701) Devt: HIV/AIDS Response Project (1101001) All Other Office of the Vice President Parliament Cabinet Secretariat Supreme Court Court of Appeal High Court Audit Service Sierra Leone Human Resource Management Office Public Service Commission Law Officers' Department Ministry of Foreign Affairs & International Co-operation Ministry of Finance and Economic Development Devt: MTEF & PETS (1290002) All Other National Revenue Authority Revenue Appellate Board Accountant General's Department Ministry of Information and Communication Electoral Commission of
 Sierra Leone National Commission for Democracy Statistics - Sierra Leone National Commission for Privatisation Mass Media Services Government Printing Department National Public Procurement Authority Justice and Legal Service Commission National Commission for Human Rights Ministry of Defence Ministry of Internal Affairs Police Prisons Department National Fire Authority Office of National Security Immigration Department National Drugs Secretariat Ministry of Education, Science and Technology Ministry of
 Youth Employment and Sports Ministry of Tourism and Culture (Culture Division) 2,440 905 3,084 12,511 1,312 - 11,199 2,803 11,446 680 252 314 611 3,000 809 435 1,043 16,644 10,124 - - - - - - 500 5,100 1,550 - 940 3,260 5,160 2,955 2,205 300 - - 3,000 2,400 - - - - - - - - 4,800 - 1,000 1,000 - - - 340 940 250 - - - 3,084 - 1,312 - - - - - - - - - 809 - 1,043 - - - - - - - - 80,406 1,300 4,582 - - - - - 843 - - 34,160 9,800 4,125 2,420 - - 84,361 3,882 - - - 17,019 - 1,860 960 - - - - - - - - 1,550 - 940 - - 2,955 - - - - - - - - - - - - - - - - 1,000 1,000 - - - - 940 250 - - - 20,103 - 3,172 960 - - - - - - - - 2,359 - 1,983 - - 2,955 - - - - - 80,406 1,300 4,582 - - - - - 843 - - 35,160 10,800 4,125 2,420 - - 85,301 4,132 - In Millions of Leones ANNEX 4 - POVERTY RELATED EXPENDITURE - FY2012 BUDGET Head Ministry/Department/Agency 2012 Budget Non-Salary, non-Interest Recurrent 2012 Budget Poverty Related Expenditures Domestic Development Non-Interest Non- Salary Domestic Development Total 304 305 306 308 309 345 401 402 403 404 405 406 407 408 409 411 412 415 416 418 419 501 509 601 701 Ministry of Health and Sanitation Ministry of Social Welfare, Gender & Children's Affairs Ministry of Lands, Country Planning and the Environment National Commission for Social Action Dental and Medical
 Board Pharmacy Board Services Ministry of Agriculture, Forestry and Food Security Ministry of Fisheries and Marine Resources Devt: Artisanal Fisheries Development Project (4020002) All Other Ministry of Mines and Mineral Resources Recurrent: Mining Cadastre (4030203) All Other Ministry of Transport and Aviation Ministry of Tourism and Culture (Tourism Division) Ministry of Energy and Water Resources Recurr: Grant to SALWACO (406002-2411), Devt: Const.
Rural Water Facilit.
(406002-0641000) Recurr: Fuel for Emergency Power Programme Devt: Bumbuna Hydro (4060002-08610000) All Other Ministry of Employment , Labour and Social Security Recurrent: Social Safety Net (4070000-2421) All Other Ministry of Works, Housing and Infrastructure Devt: Road Development Only (4080202-03910000 & 03920000) All Other Ministry of Trade and Industry Transfer to Road Maintenance Fund National Telecommunications Commission Sierra Leone Maritime Administration Civil Aviation Authority Sierra Leone Agricultural Research Institute Sierra Leone Environment Protection Agency Miscellaneous Services Domestic Arrears Contingency Fund Transfers to Local Councils 30,199 5,452 2,563 465 209 1,900 20,974 863 - 863 4,306 641 3,665 4,149 1,517 7,754 3,696 - - 4,058 2,103 1,054 1,049 5,038 - 5,038 6,357 44,307 100 1,598 526 2,937 602 849 - 17,868 82,176 2,500 500 1,150 1,000 - - 3,570 800 - 800 860 - 860 6,854 800 75,680 320 980 74,380 - - - 158,573 157,943 630 1,720 - - - - 700 - 193 - - 10,040 30,199 5,452 2,563 465 209 1,900 20,974 863 - - - 641 - 4,149 - 7,754 3,696 - - 4,058 2,103 1,054 - 5,038 - - - 44,307 - 1,598 - 2,937 602 - - - 82,176 2,500 500 1,150 1,000 - - 3,570 800 - - - - - 6,854 - 75,680 320 - 980 74,380 - - - - 157,943 - - - - - - 700 - - - - 10,040 32,699 5,952 3,713 1,465 209 1,900 24,544 1,663 - - - 641 - 11,003 - 83,434 4,016 - 980 78,438 2,103 1,054 - 5,038 157,943 - - 44,307 - 1,598 - 3,637 602 - - 92,216 GRAND TOTAL 637,618 318,110 444,105 125,493 569,598 In Millions of Leones ANNEX 4 - POVERTY
 RELATED EXPENDITURE - FY2012 BUDGET Head Ministry/Department/Agency Summary: Total Discretionary Primary Expenditure Non-Salary, Non-Interest Recurrent Domestic Development Total Poverty Related Expenditure Non-Salary, Non-Interest Recurrent Domestic Development 2012 Budget Non-Salary, non-Interest Recurrent 955,727.78 637,618.14 318,109.64 569,598.47 444,105.17 125,493.30 Poverty Related Expenditure as a % of Total Discretionary Expenditure Poverty Recurrent Expenditure as a % of Total Recurrent
 Expenditure Poverty Development Expenditure as a % of Total Development Expenditure 59.60% 69.65% 39.45% 2012 Budget Poverty Related Expenditures Domestic Development Non-Interest Non- Salary Domestic Development Total Total 569,598 444,105 125,493 ANNEX 5a - FY2012 - 15 MULTI-YEAR PAYROLL BUDGET SUMMARY BY CATEGORY In Millions of Leones Particulars Civil Service o/w: Judiciary Finance and Economic Development Prisons Education Health Agriculture Works, Housing and Infrastructure Others Charged Emoluments Teachers Police Military - Joint Force Command Foreign Missions Subvented Institutions o/w: Audit Services Anti-Corruption Commission National Electoral Commission Statistics Sierra Leone National Commission for Privatisation National Public Procurement Authority Human Rights Commission SLARI Others Local Councils Pensions, Gratuities and Other Retirement Benefits Government's Contribution to Social Security Wages Arrears Unallocated Personnel Emoluments FY2012 Budget FY2013 Indicative FY2014 Indicative FY2015 Indicative - 18,494
12,649 10,611 4,277 85,624 10,755 2,532 18,494 41,494 338,571 66,557 63,492 55,975 109,208 10,550 12,705 6,692 2,936 2,175 1,946 1,832 8,404 61,966 6,742 30,429 54,505 969 - 4,235 12,902 10,823 4,362 87,336 10,970 2,583 18,863 42,324 345,343 67,888 64,762 57,143 111,392 10,761 12,959 6,826 2,995 2,219 1,985 1,869 8,572 63,206 6,877 31,038 55,595 988 - Grand Total 799,446 908,395 917,036 935,425 Wages and Salaries - (In Budget Profile) 798,306 907,445 916,067 934,436 In Millions of Leones ANNEX 5b - FY2012 PAYROLL BUDGET SUMMARY BY MDA Code
 Ministry/Department/Agency 101 Charged Emoluments 105 Ministry of Political and Public Affairs 106 Office of the Chief of Staff 107 Ministry of Local Government & Rural Development 110 Office of the President 112 Office of the Vice President 116 Parliament 117 Cabinet Secretariat 118 Supreme Court 119 Court of Appeal 120 High Court 121 Audit Service Sierra Leone 122 Human Resource Management Office 123 Public Service Commission 124 Law Officers' Department 125 Ministry of Development & Economic Planning (Merged with Finance) 128 Ministry of Foreign Affairs & International Co-operation 129 Ministry of Finance and Economic Development 130 National Revenue Authority 131 Revenue Appellate Board 132 Accountant General's Department 133 Ministry of Information and Communications 134 Electoral Commission of Sierra Leone 137 National Commission for Democracy 138 Statistics Sierra Leone 139 National Commission for Privatisation 140 Mass Media Services 141 Government Printing Department 142 National Public Procurement Authority 143 Justice and Legal Service Commission 144 National Commission for Human Rights 201 Ministry of Defence: Civil Servants Military 205 Ministry of Internal Affairs 206 Sierra Leone Police 207 Prisons Department No.
of Workforce as @ Average Monthly Basic Pay Average Annual Basic Pay Composite Allowances/1 Salary Grants Other Allowances Oct-2011 206 4 9 390 145 43 53 25 11 30 263 - 163 24 147 - 105 247 - - 229 90 N/A 7 - - 84 107 N/A N/A N/A 8,812 366 8,446 148 11,011 1,162 Le Le Le Le Le 2,589.3 2.7 4.1 152.4 86.3 23.1 - 15.7 4.4 29.5 189.3 - 86.7 8.8 170.9 - 54.9 153.4 - - 249.2 41.6 - 7.3 - - 27.2 37.5 - - - 4,676.6 125.7 4,550.8 64.9 4,567.6 384.0 31,071.1 32.1 49.0 1,829.0 1,035.7 276.8 - 188.7 53.1 354.4 2,271.8 - 1,039.9 105.9 2,050.9 - 658.8 1,841.1 - - 2,989.9 499.3 - 87.5 - - 326.3 449.6 - - - 56,118.8 1,508.9 54,610.0 779.0 54,811.3 4,607.9 4,569.2 - 1.8 89.7 220.8 108.5 - 310.8 21.1 120.5 805.6 - 619.7 84.8 26.0 - 15.7 338.8 - - 307.3 0.4 - - - - 1.8 4.4 - - - 36.3 1.3 35.0 91.0 - 4,572.7 600.0 1,460.0 3,395.1 - 19,870.8 180.0 2,412.0 - - - - 9,214.0 - - 1,350.0 - 48,966.0 8,867.5 - 215.0 - 1,396.0 5,845.0 220.0 2,564.4 1,900.0 500.0 - 1,700.0 80.0 1,600.0 - - - - - - - - - - - - - - - - - - 1,500.0 - - - - - - - - - - - - - - - - - - - - - - - 86.9 Provision for Increase in Numbers Le - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 808.2 - 808.2 - 3,318.6 - Total Le 36,240.2 1,492.1 3,445.9 1,918.7 21,127.3 565.3 2,412.0 499.5 74.2 474.9 3,077.4 9,214.0 3,159.6 190.8 3,426.9 - 49,640.5 11,047.4 - 215.0 3,297.2 1,895.7 5,845.0 307.5 2,564.4 1,900.0 828.1 454.0 1,700.0 80.0 1,600.0 56,963.3 1,510.1 55,453.2 870.0 58,129.9 9,267.5 In Millions of Leones ANNEX 5b - FY2012 PAYROLL BUDGET SUMMARY BY MDA
 Code Ministry/Department/Agency 208 National Fire Authority 210 Office of National Security 211 Immigration Department 212 National Drugs Secretariat 301 Ministry of Education, Science and Technology Education Staff Teachers 302 Ministry of Youth Employment and Sports 303 Ministry of Tourism and Culture (Culture Division) 304 Ministry of Health and Sanitation 305 Ministry of Social Welfare, Gender & Children's Affairs 306 Ministry of Lands, Country Planning and the Environment 307 Gender and Children's
 Affairs Division 308 National Commission for Social Action 309 Dental and Medical Board 341 Pensions, Gratuities and Retirement Benefits 342 Government's Contribution to Social Security 345 Pharmacy Board Services 401 Ministry of Agriculture, Forestry and Food Security 402 Ministry of Fisheries and Marine Resources 403 Ministry of Mines and Mineral Resources 404 Ministry of Transport and Aviation 405 Ministry of Tourism and Culture (Tourism Division) 406 Ministry of Energy and Water Resources 407 Ministry of Employment Labour and Social Security 408 Ministry of Works, Housing and Infrastructure 409 Ministry of Trade and Industry 410 Environment Commission 412 National Telecommunications Commission 415 Sierra Leone Maritime Administration 416 Civil Aviation Authority 418 Sierra Leone Agricultural Research Institute 420 Sierra Leone Environment Protection Agency 501 Unallocated Personnel Emoluments 701 Transfers to Local Councils No.
of Workforce as @ Average Monthly Basic Pay Average Annual Basic Pay Composite Allowances/1 Salary Grants Other Allowances Oct-2011 257 2 230 - 34,775 292 34,483 22 48 8,095 292 199 - N/A - N/A N/A N/A 2,142 149 289 117 46 167 60 588 80 N/A N/A - N/A - N/A - - Le 82.1 0.6 84.7 - 25,404.1 206.7 25,197.4 10.7 18.1 5,533.1 97.0 72.9 - - - - - - 690.7 53.3 103.7 44.3 18.6 56.4 28.1 184.3 40.9 - - - - - - - - Le 985.3 6.8 1,016.5 - 296,733.2 2,480.5 294,252.6 128.6 217.3 66,397.6 1,164.5 874.7 - - - - - - 8,288.5 639.6 1,244.2 532.2 223.4 676.5 337.7 2,211.3 491.2 - - - - - - - - Le 985.3 6.8 1,013.6 - 126.0 54.7 71.3 - - 8,384.9 53.2 18.9 - - - - - 4.7 - 2.6 3.7 0.4 0.1 4.1 0.4 0.5 - - - - - - - - Le - 5,800.0 - 110.0 1,200.0 1,200.0 - 1,130.5 60.0 - 120.0 - - 800.0 - - - 2,733.4 1,100.0 - 900.0 - 520.0 2,666.9 - - 1,560.0 - - 2,900.0 1,850.0 7,340.0 1,100.0 - 5,888.7 Le - - - - 1,379.3 - 1,379.3 - - - - - - - - 27,600.0 44,848.4 - - - - - - - - - - - - - - - - - - Provision for Increase in Numbers Le - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Le 1,970.5 5,813.7 2,030.2 110.0 299,438.5 3,735.2 295,703.3 1,259.1 277.3 74,782.5 1,337.7 893.7 - 800.0 - 27,600.0 44,848.4 2,733.4 9,393.2 639.6 2,146.8 535.9 743.8 3,343.4 341.8 2,211.7 2,051.7 - - 2,900.0 1,850.0 7,340.0 1,100.0 - 5,888.7 Grand Total 71,073 46,151.0 545,697.0 22,952.2 150,115.2 75,414.6 4,126.8 798,305.9 In Millions of Leones ANNEX 5b - FY2012 PAYROLL BUDGET SUMMARY BY MDA Code Ministry/Department/Agency No.
of Workforce as @ Oct-2011 Average Monthly Basic Pay Average Annual Basic Pay Composite Allowances/1 Salary Grants Other Allowances Civil Service, Subvented Institutions and Others Military Teachers Police 17,133 8,446 34,483 11,011 Le 11,835.3 4,550.8 25,197.4 4,567.6 Le 142,023.1 54,610.0 294,252.6 54,811.3 Le 22,845.9 35.0 71.3 - Le 150,115.2 - - - Le 74,035.3 - 1,379.3 - Provision for Increase in Numbers Le - 808.2 - 3,318.6 Total Le 389,019.5 55,453.2 295,703.3 58,129.9 Total 71,073 46,151.0 545,697.0 22,952.2 150,115.2 75,414.6 4,126.8 798,305.9 Notes: 1.
As at October 2011, these mostly represent salaries for Daily Wage Workers.
These would be incorporated in the new Grade Category by end December 2011 ANNEX 6 - ANALYSIS OF SECTORAL ALLOCATION TO PRIORITY PROGRAMMES FY 2012 - 14 SECTORS FY2012 Budget Le'm % of budget FY2013 Indicative Le'm % of budget FY2014 Indicative Le'm % of budget AGRICULTURE Central Ministry Recurrent Development Foreign Domestic Transfers to Local Councils ROADS Recurrent Development Foreign Domestic HEALTH Central Ministry Recurrent Development Foreign Domestic Transfers to Local Councils EDUCATION Central Ministry Recurrent Development Foreign Domestic Transfers to Local Councils ENERGY Recurrent Development Foreign Domestic Total Allocated to Priority Sectors in the Agenda For Change Residue Allocated to Other Sectors 631,177
1,070,474 655,076 40.1% 62.0% 1,294,032 631,177 38.0% TOTAL BUDGET Non-salary, non-interest, recurrent expenditure Development expenditure 1,638,716 637,618 1,001,098 100.0% 1,725,550 632,753 1,092,797 100.0% 1,925,209 717,951 1,207,258 8.5% 27.1% 7.7% 9.8% 14.0% 67.2% 32.8% 100.0% ANNEX 7 - DISTRIBUTION OF GRANTS TO LOCAL COUNCILS, FY2012 Council *EDUCATION AGRICULTURE **HEALTH SOCIAL WELFARE, GENDER AND CHILDREN'S AFFAIRS - - 38,366,145 74,687,956 RURAL WATER 79,380,869 Bo District Bo City Bombali District Makeni City Bonthe District Bonthe Municipality
 Freetown Kailahun District Kambia District Kenema District Kenema City Koinadugu District Kono District Koidu New Sembehun City Moyamba District Port Loko District Pujehun District Tonkolili District Western Area Rural District National Total *Education is exclusive of Payment to WAEC for NPSE and BECE, TLM, Textbbokks for Primary and JSS, and School Fees Subsidy for Primary Schools **Health grant includes grant for Primary Health services and grant for Hospitals ***Block Grant includes grants for Solid Waste, Fire Prevention, Marine, Youths and Sports, and Other Recurrent Administrative Expenses of Local Councils 26,897,011
796,718 72,043,943 35,525,619 26,897,011 32,150,129 16,677,282 25,013,188 18,641,219 6,114,920 21,714,756 42,206,684 28,355,021 33,699,926 19,925,945 480,000,000 ***BLOCK GRANT - - - - LIBRARY
78,748,918 71,633,000 49,445,629 - - - - LIBRARY - 133,908,682 - 82,749,108 39,740,037 37,066,213 446,180,655 72,096,081 55,268,218 - 110,597,754 49,227,005 - 53,491,298 49,133,787 86,128,979 51,506,734 65,241,209 56,064,241 1,388,400,000 SUPPORT TO WARD COMMITTEES 79,389,313 9,160,305 82,442,748 9,160,305 54,961,832 9,160,305 149,618,321 88,549,618 76,335,878 88,549,618 9,160,305 73,282,443 73,282,443 9,160,305 73,282,443 103,816,794 67,175,573 82,442,748 61,068,702 1,200,000,000 ANNEX 8: MULTI DONOR BUDGET SUPPORT/GOVERNMENT OF SIERRA LEONE PROGRESS ASSESSMENT FRAMEWORK 2012 Sierra Leone Multi Donor Budget Support/Government of Sierra Leone Progress Assessment Framework 2012 Priority area Objectives Indicators 2012 Strengthened budgeting and budget execution.
Improved expenditure management 1: MOFED to take actions, consistent with the Government Budgeting and Accountability Act (GBAA) to enforce budgetary discipline and ensure that the difference (variance) between total actual primary expenditures (outturn) and total originally budgeted primary expenditures does not exceed 15%1 of total originally budgeted primary expenditures for 2011.
2: The share of actual to budgeted spending on poverty related expenditures should be greater than the ratio of actual to budgeted expenditures for all other discretionary primary expenditures.

3: MOFED to take actions, consistent with the GBAA to enforce budgetary discipline and ensure that the stock of accumulated expenditure arrears (non-transparent financing) at end of FY 2011 does not exceed 7% of total actual expenditures for same year.
Donors using indicator Status with GoSL DFID, WB, EU Agreed with MoFED.

DFID, EU Agreed with MoFED.

DFID, EU, WB Agreed with MoFED.
1 Aligned to PEFA PI-1 target of a ‘C’ rating score Sierra Leone Multi Donor Budget Support/Government of Sierra Leone Progress Assessment Framework 2012 Priority area Objectives Indicators 2012 Strengthened procurement process Improved maintenance of the teacher payroll 4: National Public Procurement Authority to take compliance actions to ensure that the share of procurement transactions in 2011 above the competitive threshold which are conducted through open competition, will improve by at least 5 percentage points over the benchmark of 68 percent established against the 2010 procurement transactions.
5: At least 75 percent of teacher payroll additions, removals and promotions should have at least one document supporting the change, based on an examination of the files of a 10% sample of all teachers who have been added to the payroll, removed or promoted in the months February-April 2012 6: At least 65 percent of the teachers on the payroll have had key data on their records verified by a physical interview with the teacher by May 2012, and the 75% of the requisite changes have been made on the teacher payroll by August 2012.
Donors using indicator Status with GoSL DFID, EU, WB Agreed with NPPA.

DFID, EU, AfDB Need to agree with MEYS.

AfDB, WB Need to agree with MEYS.

Detailed work plan and timeline for teacher census was promised by MEYS on Sep 13.

This is required to complete the indicator.
Improved records 7: The value of payment (non-payroll) DFID, EU, Need to agree with Sierra Leone Multi Donor Budget Support/Government of Sierra Leone Progress Assessment Framework 2012 Priority area Objectives Indicators 2012 management External oversight Improved basic service delivery Health sector Health sector Education sector vouchers presented by the Accountant General Department to the ASSL team auditing the 2010 annual public accounts by the time the final audit report is issued reaches 90% 8: 50% of ASSL recommendations made in 2010, as reported in the AGs annual reports to Parliament, followed up by the Director of Internal Audit, MoFED by May 2012, and the status of implementation recorded in the ASSL database of recommendations 9: The percentage of estimated deliveries taking place at a public health facility in 2011 increases to 60 % 10: Percentage of children fully immunized for diphtheria, pertusis and tetanus (DPT3) before 12 months of age will increase to 65% in 2011 11: Gross enrolment rate for girls in junior secondary school increase by 3 percentage points on the 2010 baseline.
Donors using indicator AfDB Status with GoSL Accountant General’s Office.

DFID, EU, AfDB Need to agree with ASSL.

DFID, EU Need to agree with MoH.

DFID, EU Need to agree with MoH.

DFID, EU Need to agree with MEYS.


Sierra Leone Multi Donor Budget Support/Government of Sierra Leone Progress Assessment Framework 2012 Priority area Objectives Indicators 2012 Improved domestic revenue mobilisation Improved tax administration Improved tax administration Mining revenue 12: Consolidate the Income tax arrears and initiate recovery proceedings in all cases of tax arrears owed by the non-government sector and recover Le 11 billion of Income tax arrears.
13: National Revenue Authority (NRA) to take administrative and enforcement action to increase compliance with respect to timeliness of filing of Income Tax returns, with the aim to increase by 15 percent the number of income tax payers filing on time in 2012 over that in 2011.
14: MOFED to disclose publicly in the first quarter of 2012, a statement of the revenue collected in 2011 from the top extractive industries covering at least 90 percent of the total collection, by revenue type, in accordance with §159 of the Mines and Minerals Act, 2009, and consistent with Government commitments under the Extractive Industries Transparency Initiative.

Donors using indicator Status with GoSL DFID, EU, WB Need to agree with NRA.

DFID, EU, WB Need to agree baseline with NRA.


DFID, EU, WB, AfDB Agreed with NRA/MoFED.

Strengthening governance Management of the minerals sector 15: Submission to Parliament of the National Minerals Authority Bill.. DFID, EU, WB, AfDB Need to agree with Minstry of Mineral Resources.
Management of the 16: Government to publish in the DFID, EU, Need to agree with Minstry Sierra Leone Multi Donor Budget Support/Government of Sierra Leone Progress Assessment Framework 2012 Priority area Objectives Indicators 2012 minerals sector GoSL Online Repository all mining and exploration license details and associated non-tax payments (broken down by license, company, mineral, date and tax / levy type).

Donors using indicator Status with GoSL AfDB of Mineral Resources.
Management of the energy sector 17: Submission to Parliament of the National Electricity Bill.

WB, AfDB Need to agree with Ministry of Energy Management of the energy sector Management of the energy sector 18: National Power Authority to Implement loss reduction plan.

This is an operational loss reduction plan which will have an accelerated timetable for installation of pre-paid meters as its center piece.
19: Approval by Cabinet of an electricity tariff methodology derived from a completed tariff study providing guidance on tariff setting.

WB Need to agree with Ministry of Energy AfDB Need to agree with Ministry of Energy