The amendment Finance Law in Gabon has put the 2020 state budget at 3,047.1 billion CFA francs, against 3,330.7 billion in the initial Finance Law. A decrease of 9% corresponding to 283.6 billion CFA francs, attributable to the Covid-19 pandemic.
Meeting in the Council of Ministers on June 12 in Libreville, the government adopted the draft amending finance law 2020. Thus, the budget is balanced in resources and expenses at 3,047.1 billion CFA francs against 3,330.7 billion in the Initial finance law. A decrease of 9% corresponding to 283.6 billion CFA francs.
Also, the proposed budget, in particular, provides for a level of investment expenditure (excluding assigned revenue) of 380 billion CFA francs against 513.2 billion in the amending finance law. A decrease of 26% corresponding to 133.2 billion CFA francs.
“The amending finance bill for the year 2020 is part of a particular context marked by the spread of the Covid-19 worldwide with consequences for the national economy,” the government says. The rectification of the initial budget takes into account several hypotheses. This is to maintain oil production at 10.4 million metric tonnes; a drop in the price of a Gabonese oil barrel to 30 USD against 57 USD in the initial finance law.
To these hypotheses are added a drop of 15.3% compared to the BIA, exports of manganese to 5.985 million metric tons instead of 7.069 million metric tons; a sale price per tonne of manganese on average of 147.3 USD against 204.1 USD in the BIA, a drop of 27.8%; a dollar exchange rate stabilized at 585 CFA francs.
While pursuing the structural reforms announced in the initial finance law, the 2020 budget collective emphasizes “strengthening the health and social protection system as well as supporting productive activities in order to ensure macroeconomic stability and preserve jobs, ” the government concludes.
