On Saturday January 6, 2018, the Minister of Finance and Budget, honourable Calixte Nganongo submitted the finance Act bill for 2018, before the 151 members of parliament meeting for their first extraordinary budgetary session of the fourteenth legislature at Palais des Congres.
The budget for 2018 amounts to 1522 billion 629 million in terms of revenues and to1303 billion and 629 million CFA francs in terms of expenditure.
Budgetary resources forecasting amounts to 1522 billion 629 million CFA francs against 143 billion 300 million CFA francs in 2017, which represents an increase of 279 billion 329 million CFA francs, i.e. 22.47%.
Budgetary expenditure forecasting amounts to 1303 billion 629 million CFA francs against 1498 billion 537 million CFA francs in 2017, a decrease of 194 billion 908 million CFA francs (-13.01%), resulting from the ongoing reduction of the State expenditure, which was initiated since the start of the crisis in 2014.
Finally, when all is said and done, the State budget amounts to 1602 billion 619 million CFA francs in terms of resources and to 1383 billion 619 million CFA francs in terms of expenditure.
So, budgetary revenues are higher than expenditure for a total amount of 219 billion CFA francs, which is a provisional budget surplus.
As regard cash, forecasted cash resources amount to 200 billion 200 million CFA francs against 635 billion 049 million CFA francs in 2017, which is a negative variation of 434 billion 849 million CFA francs (-68,47%).
As for treasury carrying costs, they are estimated at 979 billion 100 million CFA francs against 379 billion 812 million CFA francs in 2017, a sharp increase of 599 billion 288 million CFA francs (+157,79%), due to debt servicing and the constitution of provisions for currency reserve.
It results in a deficit of 778 billion 900 million CFA francs, against a cash surplus amounting to 255 billion 237 million CFA francs in 2017, which is a cash decrease in the amount of 1034 billion 137 million CFA francs (-405,17%), which makes difficult the financing of the deficit.
Difficulties in financing the Finance Act bill
The cash deficit of 778 billion 900 millions CFA francs cannot be resolved with the budgetary surplus of 219 milliards de CFA francs. There is still a gap of 559 billion 900 million CFA francs to be financed with funds to be looked for.
Looking for funds to fill the gap is the main difficulty to cope with in 2018. Due to the fact that the deficit is the consequence of the high level of the external debt servicing, the government will endeavor to focus on negotiating with Congo donors, so as to get an external debt restatement to make it sustainable.
Main aims to be achieved
The 2018 finance Act bill four main aims are as follows: reducing the non oil sector primary deficit; achieving budgetary discipline and expenditure streamlining, improving the performance of excise departments, mastering the policy of indebtedness and of a firm management of the debt, as well as the strengthening of the financial system.
As a reminder, the Congolese state budget draft for 2018 was submitted late for review, whereas it was waited one week before the opening of the ordinary budget session, which takes place from October to December. "The delay is due to the need to have a common macroeconomic framework with the international Monetary Fund for the conclusion of an economic and financial programme for Congo. The framework allowed to draft the finance Act bill. From December 5 - 20, 2017 in Brazzaville, the government got involved in the second negotiations round with the IMF", said the Minister of Finance and Budget.
Press department of the du Ministry of Finance