The financial report presented by the Minister of Finance of the Democratic Republic of Congo before the National Assembly offers a fascinating overview of the current state of the country’s finances for the year 2023. The figures disclosed reveal relatively satisfactory budgetary management, although the economic situation persists marked by major challenges such as high inflation and the continued depreciation of the national currency.
At the heart of this financial report, the budget for the year 2023 was executed solidly, with revenues approaching the set targets, reaching a rate of 91.22% of the forecasts. It is thus noted that the DRC was able to generate an amount of 29,607 billion Congolese francs, or approximately 13.10 billion dollars. On the expenditure side, execution stands at a high level of 96.49%, with a total of 31,316 billion Congolese francs used out of a budget set at 32,456 billion, or 13.86 billion dollars. These results demonstrate strict control of expenditure, crucial to maintaining the confidence of international economic partners and donors.
The special accounts brilliantly outperformed, recording a realization rate of 164.83%. Revenue from these accounts totaled 2,672 billion Congolese francs, or 1.18 billion dollars, thus far exceeding the initial forecast of 1,615 billion.
In terms of economic growth, the DRC still displays respectable figures with a growth rate of 8.6% for the year 2023, maintaining a stable dynamic compared to the 8.9% of the previous year. However, this growth is facing an average inflation of 23.33%, directly impacting the purchasing power of Congolese citizens. The end of the year saw the inflation rate climb to 33.9%, highlighting the persistent pressures on prices, attributable in part to the prolonged effects of the depreciation of the Congolese franc. This devaluation of the currency, currently at 2,259 Congolese francs for 1 dollar compared to 2,008 francs the previous year, reduces the value of income and savings, while import costs remain high.
Despite a positive performance of internal tax revenues, having reached 87.04% of the forecast (i.e. 19,832 billion Congolese francs, or 8.78 billion dollars), some areas are showing signs of fragility. Customs revenues, slightly above expectations at 101.33%, suggest an increase in imports or an improvement in the effectiveness of controls. Conversely, non-tax revenues reached only 77.67% of targets, which could be indicative of difficulties encountered in non-oil sectors or weaknesses in the collection of certain royalties..
Regarding the annexed budgets, with an implementation rate of 86.77%, they demonstrate resilience through expenditures of 470 billion Congolese francs, approximately 208 million dollars. This partial execution also reflects an adaptability in the implementation of complementary programs.
Special revenues also recorded an exceptional performance, with special accounts generating revenues far exceeding expectations at 164.83%. This outperformance could indicate a strengthening of activities in this area, contrasting with mixed results observed elsewhere, particularly in tax revenues outside the oil sector.
Despite encouraging budgetary results, the DRC faces major economic challenges. The impact of the global slowdown is being felt on the Congolese economy, while inflation remains a major challenge. To stay the course, the government must strengthen efficient resource management and implement structural reforms.
The stakes are high, but the Congolese government is showing a strong commitment to transparency and good governance, as the Minister of Finance highlighted in his presentation. As the DRC continues to embark on its development agenda across its 145 territories, economic resilience remains a key pillar of the government’s strategy, with the support of the International Monetary Fund and other partners.
The DRC’s fiscal management in 2023 demonstrates both progress and challenges, providing a rich picture for the country’s economic future.