DRC: the Presidency of the Republic consumes 98% of its annual budget in five months

[ANALYSIS] – The Presidency of the Republic has consumed 98% of its annual budget in five months. According to figures from the Directorate for Preparation and Budget Monitoring (DPSB), operating expenses amounted to 131,997,480,299 Congolese francs (CDF) as at 31 May 2019 on the annual forecasts voted at 134,707,131,513 CDFs. . What are the causes and the consequences?

Indeed, fiscal indiscipline at the highest state summit dates from today. The history of public finances indicates that this has been the case for a long time. However, analysts believe that it is imperative to put an end to this practice in the wake of the alternation desired by the Congolese people.

Two main causes

The origin of the budget overruns of political institutions such as the Presidency of the Republic in the DRC is based on the unrealistic forecasts of expenditure. Very often, at budget conferences held every year, it can be seen that the evaluations made by each institution do not correspond to the real needs they need.

« To see this overrun, one realizes that the 81 million US dollars allocated to the Presidency of the Republic for the year 2019 are insufficient in relation to its needs. It would be commendable that this be adjusted at the next budget conference that prepares the drafting of the state budget for the 2020 financial year, « recommended an expert.

There is also the lack of rationalization of expenditures. In planning and spending, managers should be resource-efficient in a context of immense need for scarce resources. This implies in particular the limitation of unproductive and prestige service missions and huge bonuses.

Two direct consequences

Non-compliance with budget lines leads to the consumption of appropriations allocated to pro-poor investments whose sectors are well identified. At the end of May 2019, the DPSB informs, the deficit of implementation of the public expenses amounted to 34.22%. In other words, 34.22% of public expenditure was not realized during the period. What conclude that the way of life of the institutions will nibble other budget headings.

Then there is the violation of the Finance Act for the 2019 financial year. This is explained by the execution of any unbudgeted expenditure and any budgetary decommissioning. Here, public finance experts are of the opinion that the violation is flagrant.

« Budget overruns and extra-budgetary expenditures such as those incurred for the 100-day program require a correction in accordance with the Act. Because, the budgetary imbalance is created. The next government should include it among his priorities and the head of state will have to be careful not to be considered complicit in this violation of the laws of the Republic to be enforced by him, « insists another expert.

Above all, this marked budgetary indiscipline coupled with the flagrant violation of the fiscal law of 2019, without any correction of the imbalance created, could influence the decision of the Board of Directors of the International Monetary Fund (IMF) which must in the near future, to comment on the conclusions of its Article IV review.

In order to give more argument to the IMF to enter into a program with the DRC and to benefit from the advantages that it will bring to the national economy, the Congolese executive should urgently rationalize the expenses of his lifestyle and restore budgetary discipline.

Emilie MBOYO