On January 8, 2018, the Minister of Finance and Budget , honourable Calixte Nganongo submitted the finance Act bill for 2018 before the 132 senators meeting since last January 5 for their second extraordinary session of the third legislature.
The general budget for 2018 amounts to 1522 billion 629 million CF francs in terms of revenues and to 1303 billion 629 million CFA francs in terms of expenditure.
The budget resources forecasts amount to 1522 billion 629 million CFA francs against 1243 billion 300 million CFA francs in 2017, which represents an increase of 279 billion 329 million CFA francs, that is 22.47%.
As for the budget expenditure forecasts, they amount to 1303 billion 629 million CFA francs against 1498 billion 537 million CFA francs in 2017, which represents a decrease of 194 billion 908 million CFA francs (-13.01%), resulting from the ongoing reduction of the style of life of the State 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.
The budget revenues are then higher than budgetary expenditure for a total amount of 219 billion CFA francs , which represents an estimated budgetary surplus.
As regard cash, the resources amount to 200 billion 200 million CFA francs against 635 billion 049 million CFA francs in 2017, which represents a negative variation of 434 billion 849 million CFA francs (-68.47%).
Treasury carrying costs are expected to amount to 979 billion 100 million CFA francs against 379 billion 812 million CFA francs in 2017, a sharp increase of 599 billion 288 million CFA (+157.79%) due to debt servicing and to the constitution of provisions for currency reserve.
This shows a cash deficit amounting to 778 billion 900 million CFA francs, against a cash deficit of 255 billion 237 million CFA francs in 2017, a cash decrease of 1034 billion 137 million CFA francs (-405,17%), making then difficult the financing of the deficit.
Difficulties in financing the Finance Act bill
The cash deficit of 778 billion 900 millions CFA francs will not be leveled off by 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 for a second reading. It was submitted on January 6, 2018 for its first reading to the national assembly, whereas it was waited one week before the opening of the ordinary budget session, which took place from October 16 to December 23, 2017. "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