Judith Suminwa inherits from Sama a certain revenue performance over the first four months of 2024 but pressures on security spending, but not only, remain high. For the IMF, a revised finance law for 2024 must integrate the positive impact of the amendment to the contract with the mining company SICOMINES recently signed, both in terms of revenue and investment expenditure. More than 7.5 billion dollars negotiated and obtained from the Chinese Group (Crec, sinohydro, Eximbank) by the IGF of Jules Alingete Key.
Bring IGF revenue back to the budget
The IMF insists that the DRC government immediately establish mechanisms to guarantee the proper use and governance of these funds. “The revised finance law must reflect these changes and other modifications to the budgetary framework. Revised budgetary commitment plans consistent with these objectives should be published,” recommends the Monetary Fund.
At the beginning of July 2024, the DRC should, in fact, agree with the IMF on the conclusion of the sixth and final review of the Extended Credit Facility (ECF) with a disbursement of 152.3 million SDRs, i.e. a more than 200 million dollars, to strengthen international reserves.
As a reminder, the 2024 budget to be reassessed is 40,463.6 billion FC, or approximately 16 billion dollars, and shows an increase rate of 24.7% compared to the 2023 finance law, the budget of which is estimated at 32,456.8 billion FC.
Basic social needs sacrificed
In the Budget, we recognize that all of the needs expressed by the sectors during the budgetary conferences held in July 2023. Ouragan would like to recall here that one of its editors in the person of Pold LEVI Maweja had taken an active part in this budgetary orientation seminar. In addition to the considerations recommended by the IMF, Prime Minister Judith Suminwa should work to pursue the main actions retained in the 2024 finance bill, namely the 54% increase in credits allocated to investments compared to their level of 2023, thus leading to an improvement in its share in the general budget from 35.8% in 2023 to 49.1% in 2024, which will allow the continuation of major projects initiated by the Head of State, in particular the construction of the deep water port of Banana, the construction of social housing, but also the rehabilitation of airports in the provinces, the acquisition of public works and agricultural equipment, the continued extension of the road network, etc.,
Defense and security
There is also question of strengthening the shares of credits allocated to the defense and security sector, and the inclusion in the budget for the 2024 financial year of a special allocation account called “FARDC Support and Development Fund and security services with an import of 296.9 billion FC, or around 116 million dollars, the continuation of the electoral process by the organization of local elections for an import of 200 billion FC, the progressive taking into account of social demands of the union benches within the framework of the agreements concluded with the government as well as the continuation of the sanitation of the payroll file and the retirement of eligible state agents and civil servants”.
The highlights of government action for the 2024 financial year also include the continued implementation of the policy of free primary education and the progressive implementation of universal health coverage, the continuation of financing of PDL-145T, the granting of a 3% share of the general budget to the scientific research and technological innovation sector, the preparation and presentation of the budget in program mode for seven eligible pilot sectors in application of Article 230 of the Public Finance Law, as amended to date. It is also planned to implement the provisions of article 103 of the law relating to public finances which establishes the deconcentration of ordering.
The exchange rate battle
Judith Suminwa is also eagerly awaited on the eternal question of the exchange rate and its corollary of the continued depreciation of the national currency. On Thursday, in certain intersections in the capital, 10 dollars are exchanged for 28,500 FC. Inflation has, in fact, remained high, even if from 23.8% at the end of 2023, it decelerated slowly to reach 21.2% at the end of April 2024. The purchasing power of the Congolese civil servant suffered a major blow. . The tandem Suminwa (PM) and Kabedi Malangu (Governor of the BCC) will have to prove that women can also rebuild a nation.
