Jean-Baptiste Ondaye, Minister of Economy and Finance, presided over a working session on Saturday, December 3, 2022 in Brazzaville, with the Directors General of tax and financial Directorates , namely, the Tax and State Property; Customs and Indirect Rights; the Public Treasury; and the Congolese Sinking Fund.
According to the Minister of Economy and Finance, ‘’this choice is justified by the interactions that exist between these Administrations, within the framework of cash management’’. In front of the managers of the financial authorities, Jean-Baptiste Ondaye pointed out all the weaknesses in the collection and expenditure of public revenues.
To correct these dysfunctions, he instructed each respective structure to draw up (in collaboration with the Inspectorate General of Finance - IGF) and then submit to him an action plan with the following 9 requirements: 1- Making information sharing between the different entities more fluid, through regular reconciliation of accounting entries, in order to improve the monitoring of budgetary execution, in general, and of the revenue expected from oil tankers, in particular; 2- Strengthening coordination between the central administration and the decentralized services. Decentralization occupies a significant place in the social programme of His Excellency the President of the Republic, Denis Sassou-N'Guesso. The least that can be done is to create bridges between the Administrations and the deconcentrated services, which are in direct contact with the population. A transparent system for the provision of means and human resources is therefore expected; 3- Putting in place a capacity building plan in terms of treasury management (treasury forecasting, management charts and other treasury management tools). In this regard, the International Monetary Fund (IMF), through AFRITAC-Centre, is available to assist States in this process; 4 - Optimizing the collection of tax revenues through the effective recovery of all tax controls through third party notices (detention, closure, seizure) and all other legal forms; 5-Optimizing the collection of customs revenues through actions, such as the effective collection of duties and customs duties; strengthening customs controls on petroleum products, markers, construction materials, food products (meat, fish, rice, etc.), vehicles, electronic and household equipment, as well as other imported consumer goods; and increasing upstream and downstream customs controls and strengthening the capacity of customs auditors. 6. Ensuring the proper execution of all budgetary expenditures, with priority given to the payment of civil servants' salaries and pensions, debt service and other expenditures. At this level, the settlement of commitments must respect the well-known principle of ‘’First In, First Out (FIFO)’’; 7. Improving the Treasury's intervention strategy on the Central African financial market and make the debt sustainable, so that compliance with repayment deadlines will allow sufficient budgetary leeway to meet other priority expenditure, including the financing of the National Development Programme (NDP) 2022-2026; 8- Improve the transparency of the Treasury's interventions on the Central African financial market, through the development and publication of procedures and operating methods, as well as the establishment of an internal control system; 9- Strengthening the institutional framework for the management of the State's treasury.
These draft action plans should be submitted to the Minister of Economy and Finance for validation during the week of Monday 19 to Friday 23 December 2022; the aim is to achieve the objectives of the State budget for the year 2023, namely: to achieve CFAF 1,100 billion in tax revenue, i.e. CFAF 800 billion by the General Directorate of Taxation and State Property and CFAF 300 billion by the General Directorate of Customs and Indirect Rights.
The Communication Unit of the Ministry of Economy and Finance