Barely 72 hours after the executive submitted the 2025 draft national budget to the House of Representatives, opposition leader Simeon Freeman of the Movement for Progressive Change (MPC) has criticized the Unity Party led government’s fiscal policies, labeling them as ineffective. He highlighted the economic challenges facing ordinary Liberians and residents under the current administration.
According to Mr. Freeman, the government’s fiscal policies, which he referred to as “misguided economic strategies,” are only deepening the hardships faced by ordinary Liberians.
The Liberian politician, who is also a renowned businessman, made specific reference to the unsustainable tax burden placed on citizens, criticizing the government’s lack of vision and poor economic stewardship that continues to cripple the country.
The MPC political leader highlighted the damaging effects of the government’s tax burden on the population, particularly with regards to rising prices of essential goods and services. He also pointed out the government’s mismanagement of debts, which he believes is hindering economic growth and job creation.
“The Liberian government’s policies are not only failing to address the nation’s economic distress but are exacerbating the very issues that ordinary Liberians are struggling with every day,” Freeman said in a scathing statement released in Monrovia on Wednesday, November 20.
Over-Taxed and Under-Served: A Government Out of Touch with the People
Freeman has sharply criticized the government’s tax system, contending that it has imposed excessive taxes on the population, particularly on essential goods and services. He believes that the administration’s tax harmonization efforts have worsened the already delicate economic conditions, diminishing the purchasing ability of the average Liberian. He underscored that when individuals cannot afford basic necessities like food, medicine, and transportation, it generates frustration and discontent among the populace, potentially leading to public demonstrations if unresolved.
“High taxes are stifling growth and worsening poverty,” Freeman said in a recent radio appearance. “Liberians are being squeezed at both ends — facing rising prices and shrinking income. This is not just an economic issue, it’s a social issue. If the government does not take immediate steps to reduce the tax burden, this could escalate into protests that no one can contain.”
The MPC leader’s concerns are rooted in the fact that the government’s high tax rates have led to price hikes, making it nearly impossible for most Liberians to meet their basic needs. Small businesses are also suffering, unable to thrive in an economy where people simply cannot afford their products. The negative impacts are being felt across the board, from families struggling to buy food to entrepreneurs unable to grow their businesses.
With inflation rising and prices on essential goods and services climbing, Freeman has underscored that the government’s excessive taxation policies are a direct cause of the country’s stagnation. He warns that unless drastic changes are made, widespread unrest is inevitable.
Failing to Manage Debt and Stimulate Growth
Adding to the challenges, Freeman condemned the government’s mishandling of Liberia’s accumulated debts, especially with commercial banks. This financial mismanagement has resulted in an economic stalemate, restricting businesses from obtaining essential capital for growth and job creation.
The government’s failure to address its debts is causing a ripple effect across the economy, eroding public confidence in the financial system and impeding overall progress, the MPC leader said.
“The government’s failure to pay its debts is not just a financial problem; it’s an economic crisis,” Freeman noted. “When the government defaults on its obligations to the banking sector, it ties up capital that could otherwise be used to foster growth and create jobs. This is one of the key reasons why the economy is at a standstill.”
Freeman’s remarks shed light on the broader issue of fiscal irresponsibility in the government. The issue goes beyond debt management and emphasizes the failure to handle finances in a manner that fosters growth and stability. Over time, he noted, Liberia’s leaders have heavily borrowed funds without laying a sustainable foundation for long-term progress, resulting in adverse consequences for the nation.
A Government that Overburdens, but Fails to Reform
In his critique of the administration, Freeman also called out the inefficiency and oversized nature of Liberia’s government, highlighting that the large bureaucratic structure is depleting the national treasury and impeding economic advancement.
He pointed out the government’s failure to optimize its operations and curb unnecessary expenditures, resulting in a system that is deemed ineffective and unsustainable.
“The current government is far too large and ineffective,” he said. “There are too many bureaucratic layers, too much waste, and too little accountability. This only leads to budget deficits, delays in public services, and a system that is beyond repair unless we make hard choices.”
The Boakai-led administration, he said, has not effectively tackled the crucial requirement for governmental reform. Rather than taking necessary steps to cut inefficiencies and wasteful practices, the government has expanded in scale, redirecting resources from vital services and economic advancement initiatives.
Freeman’s advocacy for a more streamlined and efficient governance structure resonates with the sentiments of numerous Liberians who have observed minimal enhancements in public services following prolonged pledges for improvements.
A Nation in Need of Reform, Not Political Posturing
Despite the current crisis, Freeman noted that the Boakai administration has not presented concrete solutions. He expressed disappointment in the government’s failure to prioritize the welfare of the citizens, warning about the potential for increased unrest.
Instead of addressing Liberia’s economic challenges with practical, long-term strategies, he noted that the government appears focused on political survival and maintaining the status quo. This approach has resulted in higher costs, stagnant wages, and limited growth opportunities for the people.
Freeman has called for open dialogue with the public to address the economic situation and proposed various solutions, including tax reforms and initiatives to boost the tourism sector. Unfortunately, there has been minimal response from the administration to these suggestions.
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“It’s clear that the government is out of touch with the reality on the ground,” Freeman concluded. “Liberians need more than just speeches and promises. We need practical reforms, we need a government that listens, and we need real solutions to the problems that are suffocating our economy.”
The Way Forward
As Liberia grapples with its worsening economic crisis, it’s clear that the government’s current policies are not working, Freeman said, while highlighting issues such as high taxes, growing debt, bureaucratic inefficiency, and a lack of significant reforms that are exacerbating the country’s crisis.
He emphasized the need for practical economic reforms, including tax cuts, debt management, and government restructuring, to address the country’s economic challenges. He expressed disappointment in the government’s perceived lack of responsiveness to these pressing issues and called for a more accountable and efficient administration.
However, it remains to be seen whether the government will heed these calls or continue to prioritize political maneuvering over real change.
“The people of Liberia deserve a government that is committed to improving their lives–not one that continues to tax and spend without regard for the long-term consequences,” Freeman noted. “The time for reform is now, before the crisis becomes irreversible. Liberia cannot afford another term of political inaction.”
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Source link : https://allafrica.com/stories/202411210248.html
Author : editor@liberianobserver.com (Liberian Observer)
Publish date : 2024-11-21 10:02:35
