Retrocession to the financial authorities in the DRC in the first half of 2023
In the first half of 2023, the Government of the Democratic Republic of Congo (DRC) retroceded to the financial authorities an impressive amount of 475.5 billion Congolese Francs (CDF), i.e. the equivalent of 235.2 million U.S. dollars. However, despite this large sum, it is important to note that this only represents a budget execution rate of 75.6% of the total amount expected for this period.
According to data provided by the Central Bank of Congo, the revenue assigned to the financial authorities for the whole of 2023 amounted to 1,256.9 billion Congolese Francs (CDF). However, at the June 2023 tax deadline, the financial authorities only managed to mobilize 35% of their annual budget allocations, i.e. only 838.4 billion Congolese Francs (CDF).
This slowdown in the mobilization of public revenue by the financial authorities raises certain questions regarding the country’s financial management. It is crucial that the authorities take adequate measures to accelerate revenue collection and ensure better management of public finances.
It is often pointed out that the DRC has immense natural resources, but unfortunately, a large part of this wealth escapes the public treasury due to corrupt practices and tax evasion. It is therefore essential to strengthen control and transparency mechanisms to ensure that public revenues are not diverted.
At the same time, it is also important to encourage the development of new sources of income for the country. Diversifying the Congolese economy and promoting sectors such as agriculture, tourism and manufacturing can help increase government revenue in a sustainable way.
In this perspective, structural reforms and good governance are essential. This involves fighting corruption, improving the efficiency of public administrations and building the capacity of financial authorities for more transparent and efficient management of public finances.
In conclusion, the retrocession to the financial authorities in the DRC in the first half of 2023 shows a budget execution rate still below expectations. Further efforts are needed to increase public revenue mobilization, fight corruption and ensure better management of public finances