According to Minister Konneh, the policy is intended to empower capable Liberian-owned businesses to help stimulate the economy.
In a meeting with hundreds of Liberian businesses at the Liberia Chamber of Commerce on Capitol Hill late yesterday, Minister Konneh disclosed that the government is about to spend a total aggregate amount of US$128 million on goods and services for its core operations in fiscal year 2012/13.
He said implementing the 25% fiscal rule means that the government is expected to infuse about US$53 million into capable Liberian-owned businesses and US$32 million on goods and services and US$21 million on furniture.
“My people, this is significant! To date, our records show that we have spent about US$715,000 representing 87.6% of purchases of goods and services from capable Liberian-owned businesses,” the Minister said of the fiscal 2012/13 budget.
He added: “For the first time we are using our main fiscal instrument-the national budget-to stimulate the domestic private sector, particularly Liberian businesses.”
The government is implementing this policy in order to stimulate the domestic economy to enhance manufacturing and increase the production of value-added goods and services to create needed jobs.
The policy is being enforced few days after President Ellen Johnson Sirleaf signed the fiscal 2012/13 National Budget Act into Law to the tune of over US$672 million dollars.
Minister Konneh indicated that giving that few Liberian-owned enterprises are large; Micro Small Medium Enterprises (MSMEs) must be a focus of government’s strategy to stimulate domestic investment.
He suggested that support to the MSMEs should be in threefold: provide access to finance, create markets, build capacity, and reform the regulatory environment.