The public sector cash flow plan of the Government of the Democratic Republic of Congo (DRC) for the first two quarters of the 2023 fiscal year has just been published. This document puts into perspective the expected tax and non-tax revenues for this period.
According to Ministry of Finance estimates, expected tax and non-tax revenues amount to 10,742.2 billion Congolese Francs (CDF), or about $5.31 billion. However, it is important to note that the total amount planned for this period is 13,704.5 billion Congolese Francs, or almost 7 billion dollars.
According to this cash flow plan, the revenue realization rate for these first two quarters amounts to approximately 78% of the total projected amount. This means that the government has succeeded in mobilizing a large part of the revenue forecast for this period.
The report also points out that the revenue collected by the General Directorate of Customs and Excise (DGDA) reached 2,746.4 billion Congolese Francs, or nearly 98% of the budget forecast set at 2,800.4 billion Congolese Francs. However, the tax revenue collected by the Directorate General of Taxes (DGI) amounts to about 6,096.1 billion Congolese Francs, or only 71% of the expected revenue.
As for non-tax revenue collected by the General Directorate of Administrative, Judicial, State and Participation Revenue (DGRAD), it amounts to 1,683.8 billion Congolese Francs, representing approximately 84% of the budget forecasts of 2,000.9 billion Congolese Francs.
It is interesting to note that the fall in prices of mining products exported from the DRC on international markets has had a negative impact on the mobilization of public revenues. This underlines the importance of diversifying the Congolese economy, in particular by opening up to the agricultural sector, in order to guarantee stable means of financing for the government.
In conclusion, the public sector cash flow plan in the DRC for the first two quarters of the 2023 fiscal year indicates a significant mobilization of tax and non-tax revenues, but also highlights the challenges linked to the dependence on exports of mining products. Economic diversification remains a key issue to ensure long-term financial stability.