GITEGA, December 31st (ABP) – Senators meeting in plenary session on Friday, December 27, 2024 at the hemicycle in Gitega (Burundi’s political and central capital), under the leadership of Senate President Emmanuel Sinzohagera, unanimously adopted the bill amending that of the general State budget 2024-2025.
The Minister of Finance, Budget and Economic Planning, Nestor Ntahontuye, was the Burundi government’s envoy to explain to the senators the reason for that amendment. He pointed out that the change was due to unforeseen expenditure, revenue shortfalls and unplanned budget activities leading to an imbalance, placing heavy pressure on the State’s cash position, as well as the pace of expenditure commitments, which did not correlate with revenue.
According to him, the TOFE (table of government financial transactions) shows a budget deficit of 521.1 billion BIF, up on the initially forecast deficit of 449.6 billion BIF, following the subsidy of 197 billion BIF for fertilizers for the B and C crop seasons.
According to him, that measure is intended to support agricultural production, which is essential to ensure food security in the country. He also pointed to expenditure on the construction of the railroad, estimated at 258 billion BIF, a strategic project to reinforce regional integration and the development of transport infrastructures.
Ntahontuye announced that the financing of that deficit would come from the sale of maize seed by the National Agency for the Management of Strategic Food Stocks (ANAGESSA), to the tune of 148.9 billion, to contribute to the purchase of fertilizer for the B and C cropping seasons; the use of net domestic debt of 398 billion through drawings on treasury securities; financing from the central bank; and net external drawings in the form of loans of 123 billion for capital expenditure.
Among the measures taken to improve tax revenues, Minister Ntahontuye highlighted the broadening of the tax base, the fight against fraud and tax evasion, and the protection of local beer industries against imported ones. In particular, he mentioned the introduction of a 100% tax on imported beers.
In his speech, the President of the Senate urged financial managers to step up austerity measures and maximize internal resources to limit the impact of that deficit on the national economy.
Members of the upper house of parliament welcomed the government’s commitment to investing in structural projects, but stressed the need for rigorous management of public finances to reduce recurrent deficits. They also stressed the need to improve tax revenue collection mechanisms in order to balance State expenditure and income.
Following the exchange-debate, the senators unanimously adopted the bill amending the general State budget 2024-2025.