A Budget Situated within Context

The socio-economic and political circumstances within which a country finds itself at a particular moment is usually the determining force for preparing and above all executing its annual budget. The draft bill of the 2019 State Budget otherwise known as the Finance Law tabled before the Lower House of parliament, last Friday, 16 November, 2018, according to the explanatory note, is an attempted translation of the zeal to boost the country's strong economic growth within an international environment characterized by relative increase in oil prices and the execution of the triennial economic and financial programme concluded on 26 June, 2017 with the International Monetary Fund (IMF).

The budget is equally prepared having in mind the prevailing insecurity situation in the Far North, North-West and South-West Regions and the implementation of the country's new exigencies notably the decentralization process. The draft budget, balanced in revenue and expenditure at FCFA 4,850.5 billion compared to FCFA 4,689.5 billion the previous year, showing an increase of FCFA 161 billion or 3.4 percent, has been proposed in honour of government's socioeconomic and political commitment.

In effect, the 2019 financial year will witness a medley of challenges including the organization of legislative and municipal elections and the hosting of the Africa Cup of Nations football tournament. The announced recruitment of 2000 Phd and doctorate holders, 1,000 of which will be absorbed in 2019, will certainly require additional resources. Many other projects, details of which will soon be presented before law makers by the Prime Minister, Head of Government have equally been earmarked.

The bill is based on the assumptions of a GDP growth rate of 4.4 percent, a barrel of oil price of 63.5 dollars and a parity of CFCA 555.1 for 1 US dollar. In a bid to measure up to the commitment announced by government, many new customs, tax and financial measures have been proposed, all aimed at stepping up domestic revenue collection. This include , notably, increasing the tax pressure rate from 13.1 per cent of GDP in 2018 to 13.2 per cent in 2019, reducing public expenditure and keeping the debt rate under control. In other words, the tax base will be broaden and expenditure reduced.

Other measures proposed in the bill include, improving the business climate and reinforcing guarantees to taxpayers. Some of the innovations underscored on the bill include, an increase in the threshold of non-concessional loans from FCFA 4...