The Economic Recovery Support Program (PARE) also achieved the expected results with regard to public investments financed with domestic resources. Between 2018 and 2019, non-oil tax revenues and private sector investment in Chad grew, boosting the country’s economy, according to a report released on September 7, 2020 by the African Development Bank.
With the Economic Recovery Support Program (PARE) funded to the tune of US $ 20.4 million by the African Development Fund, Chad has improved the situation of its public finances and strengthened the investment climate.
Thanks to the implementation of this program over the 2018-2019 period, the gross domestic product rose from -3.1% in 2017 to + 2.4% in 2018, and + 3% in 2019, driven in particular by the rising oil prices, the country’s main export product. However, the initial target growth of 6.8% of GDP will not be reached in 2020 due to the Covid-19 pandemic, which is expected to plunge the country into recession.
“The disruptions in international trade and the drop in demand for oil and other raw materials, coupled with restrictive internal measures to prevent and protect against the pandemic, have led to the shutdown or slowdown of economic activities, resulting in GDP forecast to decline by 0.1% in 2020 according to the most optimistic scenario ”, explains the program completion report, led by Régis Lakoué Dérant, senior governance officer at the Bank.
The execution of the reforms planned by PARE nevertheless enabled the Chadian government to improve the country’s public finances. Thus, non-oil tax revenues increased by 12% to reach CFAF 421 billion in 2019, against CFAF 373 billion in 2017. Regarding the control of the wage bill, while the target was to reduce it to CFAF 359 billion (against CFAF 376 billion). billion FCFA in 2017), the efforts undertaken made it possible to control it to 355 billion FCFA in 2019.
“The PARE has also achieved the expected results with regard to public investments financed with domestic resources, which increased from 36 billion FCFA in 2017 to 105 billion FCFA in 2019, ie the level of the target”, adds the report of the African development bank.
Over the same period, the volume of private investments increased significantly, well beyond the targeted level of 308 billion FCFA in 2019. In fact, these investments increased from 268 billion FCFA in 2017 to 386 billion FCFA. FCFA in 2019, an increase of 44%.
“The Economic Recovery Support Program has been implemented satisfactorily, despite the fragile economic and social context,” concludes the Bank’s report. The Ministry of Finance and Budget ensured the monitoring of the implementation of the PARE and all the technical structures involved in the execution of the program fully played their role in carrying out specific measures falling within their area of expertise. “
