Wednesday, May 17, 2017
Cote d'Ivoire: The Country's Budget Hit By Several Crises
Calmness has restored to the Ivorian cities shaken by the anger of mutinous soldiers. They refused to allow the government to back down the payment of premiums obtained last January. A measure that will cost this year 100 billion FCFA, equivalent to fifteen million euros to the budget.
A budget already undermined by the decline in tax revenues on cocoa. But the government has put in place corrective measures.
Falling revenues and rising expenses. This is the consequence on the budget of the two crises that struck Cote d'Ivoire. The drop in cocoa prices by 35% since last year has led to a decrease in tax revenues. For example, the State had to waive the export registration tax so as not to weigh on farmers' incomes, a measure that will cost nearly CFAF 43 billion.
As for the demands of the mutinous soldiers, they will cost this year nearly one hundred billion CFA francs to finance. The government also had to satisfy the demands of other categories of civil servants.
As a result, the budget was revised downwards by 9%. And investment expenses make the costs. The government, therefore, had to call on its international partners. The World Bank has pledged CFAF 60-75 billion in budget support. The IMF will increase its triennial allocation by a quarter. The French Development Agency will grant a sovereign loan the amount of which is not yet fixed. Finally, the government uses national savings and will launch in June a bond loan of six hundred billion CFA francs.