Title: The budget deficit in the Democratic Republic of Congo: a worrying situation
Introduction :
The Economic, Financial and Budgetary Control Commission (ECOFIN) of the National Assembly of the Democratic Republic of Congo recently closed the 2022 budget with a significant deficit. This observation highlights the financial difficulties facing the country. In this article, we will look at the figures presented by the ECOFIN Commission and the issues they raise for the Congolese economy.
Details of the ECOFIN Commission report:
According to the report approved by the plenary, the 2022 budget deficit amounts to 2,480,449,605,328.58 FC. This means that expenditure exceeds revenue, which undermines the balance of public finances. The Commission also highlighted that despite a slight improvement in revenue mobilization compared to previous years, doubts remain about the sincerity of the public accounts submitted by the government.
Analysis of income and expenses:
The Commission observed progress in revenue mobilization compared to the last four years, with an achievement rate of 116.93% for the 2022 financial year. However, customs and excise revenues experienced a slight decline. On the other hand, tax revenues reached a peak of 158.20% compared to the previous year. Despite this, total expenditures exceeded revenues, creating a worrying budget deficit.
Consequences of the budget deficit:
The observation of such a deficit has repercussions on the Congolese economy. It can lead to an increase in the country’s debt, thus compromising its long-term financial situation. Additionally, it could impact the implementation of public policies and development programs, potentially leading to delays in infrastructure projects and in key sectors such as education and health.
Recommendations from the ECOFIN Commission:
Faced with these worrying findings, the ECOFIN Commission recommended to the plenary to close the accounts as follows: total revenue of 26,160,704,679,011.60 FC and total expenditure of 28,641,154,284,340.20 FC. These recommendations highlight the importance of taking measures to improve the country’s financial situation, notably by strengthening revenue mobilization and rationalizing public expenditure.
Conclusion :
The budget deficit recorded in the Democratic Republic of Congo is worrying and raises concerns about the economic situation in the country. It is crucial to take measures to improve revenue mobilization and rationalize public expenditure in order to restore financial balance. This will help preserve long-term financial stability and guarantee the economic and social development of the country.