Showdown Looming?
As previously reported here, the House of Representatives has voted to exempt itself from paying income taxes, as part of something called the Financial Autonomy Act. The President has hinted that she may veto the bill, and some lawmakers have threatened to override a veto. Interest groups are backing the president.
posted by Josh Nice at Wednesday, May 23, 2007
2 Comments:
Well, I am not overly worried about the proposed act since it violates the constitution and will be rejected by the Supreme Court if it comes to that.
The budget is a "pay-as-you-go" (cash-based) budget: expenditures are made only upon receipt of revenues. So it is illogical to expect the Ministry of Finance to make available budgetary allotments in advance of the receipt of revenues. The current policy of the government freezes any borrowing by the government, understandably because the government is not credit-worthy. So how the Legislature will reconcile receiving allotments in advance when the government cannot borrow money is a mystery to me, putting aside the unconstitutionality of the proposed act.
A reading of the President's budget message (http://www.emansion.gov.lr/doc/
budget_message_1.pdf)
should give them some clue about the dire economic situation the country faces. Prewar Liberia had a budget of US $600M and the postwar budget is US $183M, a reduction of over 66%, without accounting for adjustments due to inflation. The reduction in real terms (today's dollar) is probably around 95% when one adds increased population and the need for reconstruction/construction/renovation
of infrastructure.
So the so-called, proposed "Financial Autonomy Act" is clearly a ruse intended to siphon government's resources unabashedly. Again, I am not overly concerned because this proposed act, in its present form, is sure to be rejected by the Supreme Court if it gets that far.
Pres. votoes Financial Autonomy Act Print E-mail
Written by Joey Kennedy
Tuesday, 29 May 2007
President Ellen Johnson Sirleaf has vetoed the Financial Autonomy Act of the Legislature.
President Sirleaf says the Act violates Article Two of the constitution.
Article two of the Constitution states that the Constitution is the Supreme Constitution and any law that contravenes it is void.
President Sirleaf observed the Act further violates Article thirty-four of the Constitution because it has more than one titles.
The Liberian Senate has meanwhile, set up a seven-man Ad-hoc Committee to review the President’s eight-page veto document subm
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