DRC: draft Budget 2020, IMF encourages realistic forecasts

The International Monetary Fund (IMF) encourages the Congolese Government to prepare and present realistic budget estimates for the year 2020. The challenges of these preparations, based on the relevant observations of the Fund’s Board of Directors, were addressed during the hearing that Prime Minister Sylvestre Ilunga Ilunkamba granted on Tuesday, October 1, 2019, to the delegation of experts from Washington

For the head of the delegation, the discussions revolved around the IMF’s recommendations to rationalize tax expenditures and maximize non-mining mining revenues. At this level, the Government should take appropriate measures to broaden the tax base, simplify the tax system and combat the flow of public revenues.

« The discussions on the draft 2020 Budget focused on new initiatives to balance revenue and expenditure. It is important that this Budget be realistic and consistent, taking into account revenues and forecasts of domestic and foreign debt, » Mauricio Villafuerte said at the end of the meeting.

This approach has the advantage of giving the Government greater fiscal flexibility and borrowing capacity to support public investment and social priorities.

In addition, the working session between Sylvestre Ilunkamba and Mauricio Villafuerte reviewed issues relating to the implementation of the 2019 Budget.

These discussions, which began in Kinshasa, will have to continue during the two weeks of annual meetings of the IMF and the World Bank between the two parties. Objective: to implement a strong, credible programme with well-structured reforms.

According to Mauricio Villafuerte, the IMF remains ready to support the Ilunkamba Government with technical support and policy advice to design a stronger program that can be transferred to the IMF Executive Board.

With a view to resuming a formal programme to obtain financial support, the Congolese Government should present a coherent programme to the IMF.

Nadine FULA