Title: The Challenges of Public Revenue Mobilization in the Democratic Republic of Congo
Introduction :
Mobilizing public revenue is a key issue for any country, and the Democratic Republic of Congo (DRC) is no exception. However, statistical data recently published by the Central Bank of Congo (BCC) reveals significant challenges in this area. Indeed, as of July 21, 2023, the DRC’s tax base services have only managed to mobilize 56.8% of the forecast revenue, with a deficit of 647.3 billion Congolese Francs (CDF). In this article, we will examine the reasons for this weakness in revenue mobilization, as well as the potential consequences for the country’s economy.
Analysis of tax and customs revenue:
Tax revenues, whether direct or indirect, represent an important part of the DRC’s public revenue. Data from the Central Bank of Congo, however, reveals that these receipts were lower than expected, reaching only 860.9 billion Congolese Francs (CDF) against a forecast of 1,544.9 billion Congolese Francs (CDF). This raises questions about the effectiveness of the Direction Générale des Impôts (DGI) in collecting taxes.
Similarly, customs revenue, managed by the General Directorate of Customs and Excise (DGDA), was also below expectations, with 285.0 billion Congolese Francs (CDF) against a forecast of 438.5 billion Congolese Francs. (CFD). This situation may be linked to problems of control and transparency at the border, which facilitates fraud and smuggling.
The other sources of public revenue, such as administrative, state and judicial revenue, also recorded a significant gap between the achievements and forecasts. With only 201.5 billion Congolese Francs (CDF) instead of 365.1 billion Congolese Francs (CDF), this highlights the need for better governance and more efficient management of these revenues.
Impact on the economy:
This weakness in the mobilization of public revenue has a direct impact on the economy of the DRC. In fact, the deficit of 647.3 billion Congolese Francs (CDF) had to be made up by budget support from the World Bank. This means that the country depends on external aid to finance a significant part of its public expenditure, which is a concern for its economic sovereignty.
Moreover, the weak mobilization of public revenue limits the capacity of the State to finance the investments necessary to promote the economic and social development of the country. This can hamper job creation, improved infrastructure and access to basic services such as education and health.
Conclusion :
The weak mobilization of public revenue in the Democratic Republic of Congo represents a major challenge for the country. Difficulties encountered in tax and customs revenue collection underscore the need to improve governance, transparency and oversight capacities at the level of relevant institutions. Dependence on foreign aid to fill the gap in government revenue undermines the country’s economic sovereignty. It is therefore crucial to implement measures aimed at strengthening the mobilization of public revenues, in order to support the economic and social development of the DRC