Title: The public finance crisis in the DRC: an alarming situation
Introduction :
The Democratic Republic of the Congo is going through a financial crisis of unprecedented magnitude. According to a press release from the General Inspectorate of Finance, the figures published concerning public finances are far from reassuring. These data arouse the concern of the Center for Research in Public Finance and Local Development (Crefdl), which questions the credibility of this information. Faced with this critical situation, it is essential that the government take urgent measures to restore the country’s financial balance.
A worrying financial situation:
According to figures from the IGF, the public finances of the DRC amount to approximately 12,691,647.5 Congolese francs, which is a sum significantly lower than the budget forecasts. Revenues are underperforming, with a difference of 2.6 billion dollars compared to estimates. This situation suggests that the coffers of the State are almost empty and calls into question the very existence of a surplus balance of the Public Treasury.
Unexecuted budgetary expenditure:
The Crefdl points out that the 2023 Finance Law is no longer in balance. Indeed, many important expenditures have remained unpaid since the beginning of the year. Investments from own resources, estimated at 1.2 billion dollars, were not made. In addition, planned investments in provinces and DTEs were only executed at 0.003%, representing an extremely low execution rate. The National Equalization Fund (CNP) has not received any funds, which is a violation of the constitution.
The need for an amending budget and rigorous expenditure management:
Faced with this financial crisis, the Crefdl calls on the government to draw up an amending budget in accordance with the law. It is necessary to review budget-intensive spending and prioritize investments in productive sectors. Rigorous management of public expenditure is essential to avoid waste and ensure optimal use of available resources.
Conclusion :
The observation of the situation of public finances in the Democratic Republic of Congo is alarming. The low mobilization of revenue, unexecuted expenditure and near-empty coffers jeopardize the country’s financial balance. It is urgent for the government to take measures to restore the situation and guarantee rigorous management of public finances. The country’s economic future depends on it