new alert on budget overruns

new alert on budget overruns

In the DRC, despite calls from civil society and international donors including the International Monetary Fund (IMF), budget overruns persist. This time, the government speaks of a “worrying” situation, already at the start of the year. At the cabinet meeting held over the weekend, the government claimed to have spent more than $750 million in January alone. This is more than the 520 million in revenue mobilized.

with our correspondent in Kinshasa, Pascal Mulegwa

Revenue mobilization in January exceeded the $500 million forecast. But it was not enough to finance the charges. To cover the deficit of nearly 230 million dollars, the government dipped into its Treasury bonds and budget support from donors.

The overconsumption of credits, according to the Minister of Finance, Nicolas Kazadi, was caused by security spending, retirements and the functioning of institutions.

Professor Florimond Muteba, head of the NGO ODEP, which specializes in public finance, castigates poor budget management. ” What are these exceptional situations that could not be foreseen in the 2023 budget? The war has been here since last year! This is very worrying… The priority is salaries and operations and never investments! And now, to cover things, we are being told about security expenses?! What is to be feared is printing money, as in the time of Mobutu, and inflation that will reach new heights… We are quite simply faced with a calamitous management of the power in place since January 2019. .. »

The Minister of Finance has recommended the suspension of domestic debt payments.

Faced regularly with payments made outside the expenditure chain, the government has proposed to reduce the threshold, including that of expenditure paid in cash. It also proposes to slow down “non-binding” expenditure for the functioning of the institutions.

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