Billions in the Red: 2022-2023 Budget Falls Short by a Staggering 197.5 Billion FBu

The general State budget for the financial year 2022-2023 presents an imbalance of 197.5 billion FBu. In order to reduce recurring budget deficits, an economics expert emphasizes that it is essential to prioritize capital expenditure rather than operating expenditure

Gabriel Rufyiri: “It is positive that civil society is part of the process of developing the program’s budget from the beginning of the activities, because they have something to contribute. »

The overall state budget for the 2022-2023 financial year shows a worrying shortfall. Revenue amounts to 2,194.8 billion FBu, while expenditure reaches 2,392.3 billion FBu, resulting in a deficit of 197.5 billion FBu. According to an analysis conducted by Diomède Ninteretse, an economics expert and university professor, this shortfall had notable repercussions on the prices of basic necessities. Exceptions have increased alarmingly by up to 344%. It is therefore difficult to explain the increase in expenditure forecasts which have increased by more than 100%, from 18 billion to 80 billion FBu. In order to reduce this recurring budget deficit, it is crucial to prioritize investments rather than operating expenses.

For the financial year 2022-2023, economic growth was projected at 5%, while the tax burden was estimated at 17% and inflation at 8%. This information was gathered during the aforementioned analysis workshop on criticism of the 2022-2023 program budget, organized by the Observatory for the Fight against Corruption and Economic Malversations (OLUCOME) on September 24, 2024.

Achieving a balanced budget seems almost unimaginable without close collaboration between administrative authorities and civil society representing the voice of citizens. Gabriel Rufyiri, president of OLUCOME, praised the progress in cooperation between the government and civil society, while deploring some shortcomings. He explained that even if the government includes them at certain times of adopting the budget, this is often done late, once the budget has already been established, to present different departments to them. “It is positive that they include us, but we want to be integrated from the beginning of the process, especially during the December 2024 budget review,” he insisted.

Actions aimed at better preparing the program budget

The methods of developing the program’s budget highlight the importance of civil society participation. It plays a vital role in representing citizens, identifying urgent needs, collecting data and prioritizing projects that can increase resources. It is also important to include it in the evaluation of initiatives and when adopting the budget, as highlighted by Diomède Ninteretse.

At the same time, Gabriel Rufyiri insisted that the development of the program’s budget must go hand in hand with the clear formulation of the objectives and the activities that will make it possible to achieve these objectives. It is also essential to have indicators of results in order to definitively measure how the activities will be carried out in order to achieve the objectives set. For him, it is impossible to plan a good program budget without having relevant outcome indicators.

Strategies to increase financial resources

In order to have a balanced budget, it is necessary to change the mindset within the entire population. It is essential to increase public revenue by expanding the tax base and guaranteeing budget funding. This method must be used at all levels, from families to local communities and even the government, Ninteretse pointed out, emphasizing in passing the need to make the heritage that is not exploited profitable.

During the discussions, the participants in this workshop emphasized that it is important to promote agriculture in order to obtain essential raw materials for industrial activities. These raw materials could be transformed into products to be marketed and exported, thereby creating foreign exchange that could stimulate economic growth.

It is also essential to establish or improve mechanisms for monitoring and evaluating exemptions and other privileges granted by the government to businesses so that they contribute to economic development.

In addition, taking advantage of public property, especially in the coffee sector and other sectors, is essential in order to generate foreign currency. This requires better policy and effective implementation.

Finally, it is crucial to create a climate of trust to encourage investments. This will make it possible to expand the tax base needed to finance the budget.