By Sallieu S. Kanu
Freetown, July 29, 2025 — The Government of Sierra Leone has unveiled its Supplementary Government Budget and Statement of Economic and Financial Policies for the 2025 financial year, with a sharp focus on fiscal consolidation and budget credibility to sustain macroeconomic stability.
Delivering the address at the Chamber of Parliament, Tower Hill, Finance Minister Sheku Ahmed Fantamadi Bangura stated that the revised budget is necessary due to significant changes in both the domestic and global economic landscapes since the original 2025 Budget was approved in December 2024.
Why the Revision?
The Supplementary Appropriation Act 2025 was proposed in response to: Improved macroeconomic fundamentals including lower inflation and stronger exchange rate performance; mounting global uncertainties such as tariff hikes, geopolitical tensions, and declining aid flows; and the need to realign government expenditures with revenue shortfalls while maintaining economic gains.
The revised framework seeks to lower the budget deficit from 3.9% to 3.8% of GDP, thereby reducing borrowing requirements and supporting the Bank of Sierra Leone’s efforts to curb inflation and stabilize the national currency.
Economic Performance Overview
Minister Bangura reported positive strides in economic growth and stability: Real GDP projected to grow by 4.5% in 2025, supported by the agriculture and services sectors; Inflation dropped from 54.5% in Oct 2023 to 7.1% in June 2025, aided by stable exchange rates and increased domestic food production; export earnings rose by 11.8% in Q1 2025 compared to Q1 2024, driven by iron ore, rutile, and agricultural products; trade deficit narrowed to US$113.7 million due to strong export growth; and treasury Bill rates fell dramatically from 41.3% to 14.8%, reflecting monetary discipline
Debt and Foreign Reserves
Total public debt stands at US$3.1 billion, split between US$1.8 billion in external debt and US$1.3 billion in domestic debt and Gross foreign reserves declined to the equivalent of 1.8 months of import cover by the end of June 2025.
Legal Framework and Parliamentary Compliance
The Minister cited Sections 112 (3) of the 1991 Constitution and 42 (1)(a) of the PFM Act 2016 as legal bases for presenting the supplementary estimates, reinforcing the government’s commitment to transparency and fiscal responsibility.
Minister Bangura reaffirmed commitment to macroeconomic stability, urging Parliament to endorse the Supplementary Appropriation Act 2025 and ensure alignment between fiscal targets and economic realities.