DRC: a cash flow plan to avoid slippage in public spending

Text by: RFI Follow

The International Monetary Fund (IMF) had asked the Democratic Republic of the Congo (DRC) to be more realistic in its spending. At the institution's request, the Congolese government has just published a cash flow plan, an instrument that should allow it to rationalize its spending, after slippages in 2019. Far from the historically high budget of eleven billion dollars, promulgated there two months ago by President Tshisekedi, this cash flow plan provides half the revenue; and, to date, half the expenses. Are ambitions lowered?

Publicity

With our correspondent in Kinshasa, Pascal Mulegwa

The DRC plans to spend $ 5.64 billion and the government believes it can actually mobilize 5.4 billion in revenue . The gap of some 200 million is expected to be filled by treasury bills issued by the Central Bank. Spending solely on the basis of revenue or financing garnered from the Treasury is one of the commitments made to the IMF.

Two billion dollars in external funding

To fill its 11 billion budget, Kinshasa says it hopes for $ 2 billion in external funding. This will best bring the country to a budget of $ 8.2 billion. To date, the institutions will therefore not be able to provide 30% of the expenditure planned in the 2020 budget, which will require arbitration.

The Congolese government explains this sudden reversal in its projections by an evolution of the " circumstances " which " prevailed at the adoption of the budget " can be read in a document issued by the Ministry of Finance.

Forecast evolution

The forecasts could still evolve if the receipts explode in the financial management. For the Public Expenditure Observatory, a Congolese NGO, this document, published on the website of the Ministry of Finance, should pave the way for a revision of the finance law. This organization believes, however, that the government's forecasts are perhaps still too optimistic, especially on external support.

It must be said that this aid should be conditional on compliance with several reforms and a management orthodoxy, which will be regularly monitored by the IMF.

► The DRC launches its plan to establish universal health coverage

Newsletter With the Daily Newsletter, find the headlines directly in your mailbox

Download the app

• DRC
• finances
• IMF
• Félix Tshisekedi

On the same subject

DRC: 6 births of gorillas since January in Virunga Park

DRC: elephants cause death and property damage in Malemba Nkulu

DRC: Zambian police raid in Haut-Kantaga in pursuit of diggers