The execution of the Government of the Democratic Republic of Congo’s (DRC) cash flow plan at the end of September 2024 revealed a surplus of 80.8 billion Congolese francs (CDF), or 28.3 million USD, well below the 169.8 billion CDF forecast for this fiscal year.
This counter-performance raises questions about the country’s financial management and budget forecasts.
“At the end of September 2024, the execution of the Government of the Democratic Republic of Congo’s cash flow plan resulted in a surplus of 80.8 billion Congolese francs (CDF), compared with the programmed surplus of 169.8 billion Congolese francs (CDF)”, states the Central Bank of Congo.
The cash-flow plan, designed to rationalize public spending, was put in place following recommendations from the International Monetary Fund (IMF).
Experts believe that this surplus could be attributed to less effective revenue mobilization than expected.
Fluctuations in the prices of raw materials, essential to the Congolese economy, also had an impact on forecasts.
However, the Congolese government has promised to improve transparency and management of public finances. Reforms are underway to strengthen revenue collection and optimize spending.
Critics also point to a lack of anticipation in the face of economic challenges. The need for better budget planning has become apparent to avoid such deviations in the future.
International support, notably from the IMF and the World Bank, remains crucial. These institutions condition their aid on structural reforms and better economic governance.
The DRC must therefore navigate cautiously in this uncertain economic context.
The current surplus could provide an opportunity to strengthen budgetary capacities, but this will depend on the central government’s compliance with its financial commitments.
Although the cash surplus is a positive sign, it must be interpreted with caution. The authorities must ensure that it does not mask structural weaknesses in public finance management.
Mitterrand MASAMUNA