Budget overrun in the DRC: Public finances in an impasse
The management of public finances in the Democratic Republic of Congo (DRC) is a major concern. The situation worsened with the budget overrun of around 28% in the bill reporting on the Central Government Budget for the 2022 financial year.
In a recent press release, the Public Expenditure Observatory (ODEP) denounces these practices of budget overruns which took root after the departure of Joseph Kabila in 2019. The ODEP highlights the fact that even the two Chambers of Parliament, supposed to ensure the proper execution of the finance law, are also affected by this phenomenon. The National Assembly records an overrun rate of 145% and the Senate 184%. A worrying situation which questions the effectiveness of these institutions which nevertheless have the power to vote on the budget and ensure its monitoring.
The ODEP findings are alarming, with budget overruns reaching high levels in several key institutions. The Court of Auditors, the supreme audit institution, is also affected with an overrun rate of 126%. The Minister of Finance, in his report, underlines that 7 institutions and 22 ministries have execution rates beyond 100%. This list includes crucial entities such as the Presidency of the Republic, the Prime Minister’s Office, the CENI (Independent National Electoral Commission), Foreign Affairs, Defense and Veterans, among others.
Faced with this alarming situation, the ODEP makes recommendations to the President of the Republic, the Prime Minister and the National Assembly. These recommendations aim to improve the management of public finances and put an end to excessive budget overruns. Among the proposed measures, we find the organization of a national forum on budgetary fragility, the total computerization of the public revenue chain, strict compliance with the public expenditure circuit and the rigorous application of procedures linked to public markets.
It is crucial that the DRC authorities take concrete measures to remedy this situation in order to guarantee sound and transparent management of public finances. The fight against excessive budget overruns is essential to ensure the economic and social development of the country, as well as citizens’ confidence in their institutions. It is time to put an end to these practices which hinder economic growth and compromise the future of the DRC.