The Governor of the Democratic Republic of Congo has just raised by 43% the level of its relative ambition to the level of the draft 2020 Budget under preparation. It has thus increased from US$7 billion to US$10 billion. This resolution was approved at the end of the Council of Ministers meeting on Friday, October 11, 2019.

On the basis of the relevant guidelines given to the Prime Minister by the Head of State, Félix Antoine Tshisekedi, following the previous Council of Ministers (of 4 October last), the Deputy Prime Minister in charge of the Budget was able to enrich the methodological note on revenue and expenditure forecasts for the 2020 financial year currently being prepared under his supervision.

According to the report Jean-Baudouin Mayo Mambeke dispensed with this enriched Note during the meeting of last Friday, which was chaired by the Head of State.

« The Council has raised the hypothesis of a Budget of US$10 billion which aims to achieve the objectives of the Head of State’s vision and the Government’s programme. In parallel with this option, the Council has adopted efficient accompanying measures for maximum revenue mobilization, » said the Government spokesman.

Compte rendu du premier conseil des ministres RDC par le porte-parole du gouvernement Jolino MAKELELE. pic.twitter.com/u6hKh9sdyx

— AfricaTopTweets (@AfricaTopTweet) September 15, 2019

While these measures have not been announced, it is understood that they are part of the tax reforms to be implemented by the Ilunkamba Government.

First of all, it is necessary to mention the expansion of the tax base. This involves, in particular, a
exhaustive identification of taxpayers and taxable persons to enable the financial authorities to have an updated, digitised and dynamic national tax directory.

Hence, the need for the Prime Minister to issue an Order in Council to launch the new Public Revenue channel to be deployed across the country. Objective: to better organize the secure collection of public funds.

Some people then think of strengthening the fight against the leakage of public revenues. It is possible to condition State agents committed to financial authorities by regularly paying their mobilisation bonuses and punishing any kind of tax fraud.

Finally, there is the awareness of fiscal citizenship and the fight against revenue leakage. In this regard, the involvement of the Head of State and all public institutions would play an effective role in this popularization as part of the implementation of tax reforms, including the simplification of the tax system.

President Félix Antoine Tshisekedi remains firm on the increased mobilization of internal resources to enable the Government to have the means of its policy to meet the expectations of the Congolese people.

He reiterated this again at the last meeting of the Council of Ministers.

However, the decision of the budgetary authority will be expected, once this preliminary draft has been approved and transmitted to Parliament, on one of three options, namely: maintaining the same level by reallocating allocations; downward revision to avoid unrealistic budget estimates; and/or an increase to over US$10 billion to force the Government to strictly apply its accompanying measures.

Increasing tax revenues and their qualitative allocation is an imperative for the economic and financial governance of DR Congo. This is one of the necessary but not sufficient conditions to motivate the Bretton Woods institutions to support the efforts of the Congolese Government. They want results.

According to credible sources, the International Monetary Fund (IMF) believes that the Government should justify orthodox management of public finances, the macroeconomic framework and structural reforms in order to benefit, in the very short term, from a formal programme with technical assistance and financial support.

Stressed the importance of transparency, accountability, & respect for the rule of law to DRC President Felix Tshisekedi.

I assured President Tshisekedi that the @WorldBank Group will continue to assist the DRC in addressing Ebola & other pressing development issues. pic.twitter.com/02yKc79IE1

— David Malpass (@DavidMalpassWBG) September 30, 2019

At the World Bank, the demands seem to be in line with pushing the Congolese Executive to implement half of the structural reforms in record time. However, if their proposed budget support goes up to US$1.5 billion over three years, the IMF comfort rating will condition the World Bank’s decision.

Currently, each of these Bretton Woods institutions is considering the possibility of strengthening bilateral cooperation and/or the formal programme with DR Congo. But also to unlock their support for the various growth-generating projects across the country.

Eric TSHIKUMA

On the same subject :

Luc Gérard Nyafe: « the Head of State shares the requirements of the Bretton Woods institutions ».