The Congolese Parliament adopts the corrected 2016 budget

The Congolese Parliament adopts the corrected 2016 budget estimated at 3.623 Billion 11 Million CFA Francs
08 juil, 2016

The two houses of parliament, the National Assembly and the Senate, successively adopted on the 4 and 5 July 2016 during a plenary session at the Palais des congrès, in Brazzaville, the amended bill on the rectified State budget for 2016. Set by the government at 3.776 Billion 169 Million CFA Francs, the budget was actually adopted by the two houses of parliament at 3.623 Billion 11 Million CFA Francs.

The rectified finance bill was defended by the Minister of Finance, Budget and Public Portfolio, Calixte Nganongo.

According to Minister Calixte Nganongo, the government rectified budget hypotheses of the initial finance law. This implies taking into consideration the putting in place of the new executive team, thereby modifying the organic and operational setup of government action; Consultative councils instituted by the new constitution which was not provided for in the initial finance law. The third hypothesis which led to the modification of the finance law is the continuing drop in oil prices. Hypotheses retained in the drafting of this rectified finance bill, as far as oil revenues are concerned are:

  • Price of a barrel of Congolese crude oil at 35 US dollars, i.e. a discount of 4.468 US dollars compared to the Brent, preferred crude oil, estimated at 39.468 US dollars ( IMF 2016 hypothesis, as opposed to 52.3 US dollars in 2015);
  • Oil production of 94.125 Million Barrels ;
  • The American dollar set at 600 CFA Francs.

For the Minister of Finance, government’s policy shall centre on three main priorities translating the will of the President of the Republic, namely:

  • ensuring local development through the implementation of accelerated urbanization in the Bouenza municipality;
  • leading the drive for development by carrying on with on-going infrastructure projects ;
  • guaranteeing the functioning of the State.

Following this re-evaluation, the State’s budget resources sum up to 2.121 Billion 468 Million CFA Francs (as against 2.333 Billion in the initial finance law). The budget is distributed as follows:

  • Tax and customs revenue: 1.046 Billion 552 Million CFA Francs (same as in the initial finance law). This sum, the Minister said, shall be attained thanks to the expansion of the tax base on transfers, electronic communication traffic and payroll tax. It is worth highlighting that modifications relating to tax on electronic communication traffic bear respectively on increasing the quota of terminal tax on phone calls : 50%; increasing the State’s quota, set henceforth at 37.5%;
  • Non-tax current revenue : 579 Billion 691 Million CFA Francs, as against 785.6 Billion in the initial version ;
  • External revenue : 339 Billion 280 Million CFA Francs (same as in the initial finance law);
  • Transfers, gifts and legacies: 155 Billion CFA Francs (as against 162 Billion in the initial law).  


In terms of expenditure, budgetary charges are set at 2.395.996.536.830 CFA Francs as against 2.608 Billion in the initial law, i.e. a reduction of 8.1%. It comprises:

  • Ordinary expenditure (1.089.340.535.782 F. CFA), of which the State’s payroll (410 Billion CFA Francs), running budget (goods, services, sundry charges: 300 Billion CFA Francs, as against 319 Billion CFA Francs in the initial law).  “This drop is explained by the relocation of sundry charges to other types of expenditure », the Minister of Finance explained ;
  • Investment expenditure (1.306.656.001.048 CFAF), as against 1510.5 Billion in the initial version. This is because “the drop in oil revenue seriously impacted government’s decisions on investment ». During the second quarter, investment expenditure, amongst others, was committed to the operationalization of the Mother and Child Hospital of Brazzaville, the Specialised Hospital in Oyo, the Kinkala and Madingou general hospitals, opening of the Maloukou production plant, launching of modules at the Denis Sassou-Nguesso University, completion of the Kinkala-Mindouli highway, setting up of a coordination unit charged with follow-up government’s policy on free medical services and certain medication, valorisation coupled with biometry of State agents, etc.

Finally, the State budget is applied to treasury resources which stand at 1.428.540.536.830 CFA Francs, whereas treasury costs stand at CFA Francs. The treasury credit balance of 274.528.936.830 CFA Francs could then be injected into the State budget.

By way of recommendations, the Economy and Finance Committee requested the government to forward to parliament on a quarterly-basis reports on budget execution; to systematize tax payments through bank transfers for all mounts greater than 100.000 CFA Francs. The Commission asked Parliament to seize the Court of Audit and Budgetary Discipline on the situation of institutions and companies of public portfolio, etc.

Questioned on exonerations, Minister Calixte Nganongo simply said his country needs resources. “We need to be focused on the issue. We are faced with something immense as far as taxation is concerned. Of 100% exoneration, 20% concerns routine traffic and 80% in oil. That is a real problem. We cannot leave everything there. We shall stretch our hands where we can but for now, since we are in search of resources, we shall manage with the 20%” he emphasized. Talking about Congo’s debt, he said it was quite huge. Notwithstanding, the Minister stated that the country just paid its debt to three rating agencies. It is worth mentioning that the National Assembly was led by its President, Justin Koumba, and the Senate by its President André Obami Itou.