DRC: State budget executed at 35% in revenue and 37% in expenditure at the end of June 2019

The State budget for the 2019 financial year was 35.5% in revenue and 37.9% in expenditure on 21 June. These official execution rates are published by the Central Bank of Congo (BCC) in a periodic note consulted by Zoom Eco. This situation requires, on the one hand, the rationalization of expenses; and on the other hand, increased revenue mobilization. Objective: restore management on a cash basis.

In analyzing the execution table of the State Budget 2019, the first observation that is obvious is the budget deficit of 231 738,50 million CDF (ie, 140 million USD at the rate of 1,650 CDF / US dollar).

This negative balance is justified by the fact that the cumulative receipts raised from 1 January to 21 June 2019, estimated at CDF 3 406 818.47 million (ie USD 2.064 billion at a rate of CDF 1 650 / US dollar), were lower expenditures made at CDF 3 638 556.97 million (equivalent to US $ 2.205 billion at the same exchange rate).

Statement of expenditure

In the « expenditure » section, BCC statistics indicate that the « Remuneration » item is progressing at a normal pace and is at 44% of its execution. As for disbursements linked for example to the public debt and subsidies & transfers, their respective implementation rates are low, ie 21% and 14.5%.

The lowest realization rate is for « capital expenditures », better capital expenditures. Only 4,2% of a total of 2,614,593.15 million CDFs were released. This represents $ 66 million on the forecast of $ 1.5 billion.

The two items « urgent expenses » and « exceptional expenses » represented a total amount of 808 895.91 million CDF over the period. Applied to the indicative exchange rate of our analysis, this is equivalent to 490 million USD.

The item « Operating Expenses » has already been credited to 90.6% as of June 21, 2019. It is to be expected that this credit will be exhausted five months before the end of the current fiscal year.

Recipe situation

In general, revenue mobilization has evolved normally for two of the three financial authorities. While the Directorate General of Taxes (DGI) has reached an implementation rate of 43%, the General Directorate of State Revenue and Equity (DGRAD) achieved a completion rate of 47% in relation to all their assignments annual.

The General Directorate of Customs and Excise (DGDA) was able to mobilize only 35.9% of its annual assignments, while it should already be close to 50% in the sixth month of the year. In the same situation, revenues from oil tankers reached only 32.3% of their annual assignments as of June 21, 2019.

For informed analysts, this situation forces the competent authorities to strengthen revenue mobilization mechanisms by fighting the leakage of public revenues. Therefore, they should ensure that the conditions of the agents engaged in the collection of these public funds, including the regular payment of their premiums, are improved.

Emilie Mboyo