For several years, one line in Sierra Leone’s national budget created ongoing challenges. The public sector payroll is the government’s single largest expense, yet it was often underestimated. As salaries regularly exceeded approved budgets year after year, it put pressure on overall public finances, and reducing the funds available for health, education and other essential services.
Between 2019 and 2023, payroll spending exceeded approved budgets every year, sometimes by as much as 17 percent. These overruns were not just a technical issue. They limited fiscal space, undermined confidence in the budget and made it harder for the government to plan and deliver on its priorities.
RESETTING HOW PAYROLL IS PLANNED AND CONTROLLED
In 2024, this long-standing pattern began to shift. With support from the FCDO-funded Expertise to Support Economic Reform in Sierra Leone programme, implemented by ASI, the Ministry of Finance reviewed how payroll was being budgeted, monitored and controlled.
The focus was not on new systems or external fixes, but on strengthening how existing teams work with data and with each other. A dedicated payroll budgeting team was set up within the Ministry of Finance, working closely with Ministries, Departments and Agencies (MDAs) to replace historic guesswork with evidence-based planning.
Instead of rolling forward old numbers, payroll budgets were rebuilt from the ground up. Workforce linked templates required MDAs to clearly set out staffing needs and costs, making it easier for the Budget Bureau to verify submissions and challenge inconsistencies. For the first time, payroll planning was anchored in who was employed, where and at what cost.
At the same time, through capacity building and focussed training sessions, Ministry of Finance staff gained hands on skills to analyse payroll data themselves. This meant they could test policy options, spot risks earlier and take corrective action during the year rather than reacting once overspending had already occurred. This strengthened the link between workforce decisions and fiscal affordability.
WHAT CHANGED IN PRACTICE
The most visible shift came in budget discipline. In 2024, payroll execution came in at 93.2 percent of the approved budget. This was the first time in five years that spending stayed within limits.
The improvement has continued. By September 2025, payroll execution stood at just over 71 percent, signalling stronger in year control and far less risk of late-stage overruns. Real time dashboards now allow teams to track spending against the budget, understand where pressures are building and resolve discrepancies before they escalate.
Behind these numbers is a deeper institutional change. Budget Bureau and Accountant General’s Department staff now have the confidence to manage payroll as an active process, not a fixed cost that often drifts out of control. MDAs are more accountable, knowing that staffing data is scrutinised and directly linked to budget decisions.
These improvements are also contributing to wider system benefits. With more reliable payroll planning, the Ministry of Finance now has more predictable in‑year cash management and far less need for emergency reallocations or supplementary budgets. Stronger links between staffing decisions and fiscal affordability give MDAs clearer signals on what is realistic within the budget. The increased discipline and transparency have also strengthened the government’s credibility with development partners and created a more stable platform for future reforms,
WHY THIS MATTERS BEYOND THE MINISTRY OF FINANCE
Payroll may sound technical, but its impact is deeply felt. When salary spending runs out of control, it crowds out funding for frontline services that citizens rely on. Better payroll management means more predictable public finances and more room to invest in national priorities.
The approach in Sierra Leone shows what is possible without heavy reforms or costly systems. By improving data use, strengthening relationships across government and embedding practical skills, the Ministry of Finance has built a more resilient way of working that can endure beyond the life of the programme.
Sustaining these gains will depend on continued discipline in data updates, regular engagement with MDAs, and ongoing coordination between budgeting and accounting teams — reinforcing that payroll control is a continuous management process, not a one‑off reform.
For a country where fiscal space is tight, getting payroll right is not a small win. It is a foundation for better budgeting, stronger accountability and more reliable delivery for citizens.
“As Deputy Director at the Budget Bureau, Payroll (Ministry of Finance Sierra Leone), I have witnessed a remarkable transformation in our payroll budgeting and execution process thanks to the ESER-supported reforms. For the past two years, we achieved payroll execution below 100% of the approved budget, reflecting true fiscal discipline and improved planning. The introduction of workforce-linked templates and real-time monitoring tools has empowered our team to monitor the implementation of the payroll budget, manage resources more effectively and ensure transparency. This has also improved on the quality of the advice provided by my team to the leadership of the Ministry and thus facilitating timely and evidence-based policy decisions relating to the wage bill. Overall, the interventions have not only strengthened our financial management but also built lasting capacity within our staff.” – Ilara Mahdi, Deputy Director of Budget, Ministry of Finance
