The analysis of the bill on the State budget for Year 2023 by the Committee on Economic and Financial Affairs of the National Assembly began this Monday, November 7, 2023, in the hemicycle, with a general introduction by the Minister of Budget and State Owned Entities, Moussa Sanogo.
Outlining the main lines of the 2023 budget, he announced that between 2022 and 2023, the State budget will increase from 9901 billion CFA francs in 2022 to 11694.4 billion CFA francs in 2023, i.e. an increase of 1793 billion CFA francs. Tax revenues should increase by CFAF 803.5 billion between 2022 and 2023. As a result, the tax load would increase by 0.9 percentage points, from 12.5% of GDP to 13.4% of GDP. The wage bill to tax revenue ratio is expected to rise to 35.6% in 2023, thus approaching the EU standard of 35%.
The Minister pointed out a reduction of the budget deficit by 1.2 percentage points of GDP between 2022 and 2023, from 6% in 2022 to 4.8% in 2023. Essential expenditure, namely debt service, staff and subscription expenditures, would represent 52% of the budget in 2023. Côte d'Ivoire's debt ratio would be 51.7% at the end of 2022. The Minister could not help saying that "Côte d'Ivoire has a much lower debt ratio than these countries at a similar level of development”.
Moussa Sanogo also said that the draft budget is made up of 53.4% of tax revenue and 26.5% of borrowing on the money markets. As for expenditures, the structure of the budget shows a debt service of 32% and investment spending of 28.5% of the budget. The state of investment expenditure has increased from 2137 billion CFA francs in 2021 to an expected level of 3338 billion CFA francs in 2023. "Over these two years, an increase of 1201 billion CFA francs is recorded in investments," notes the Minister of the Budget and State-owned entities. Overall, "40% of public investments will be used for the development of infrastructure and public facilities, 14% for health and social actions, 13% for defense, security and justice.
This attests that the draft budget takes into account the National Development Plan (NDP 2021-2025), which is based on 6 pillars. 120 billion CFA francs will be allocated to pillar 1 (speeding up of structural transformation), 199 billion CFA francs to pillar 2 (human capital development) and 1279 billion CFA francs to pillar 3 (private sector development). Pillar 4 of the NDP: Inclusion and National Solidarity has been allocated a budget of 600.5 billion CFA francs, and the 5th Pillar relating to the balanced development of the territory, 163 billion CFA francs, while Pillar 6 dedicated to enhancing the State’s governance and modernization, has a budget of 975 billion CFA francs. In addition, a budget of 598 billion CFA francs has been set aside for the second generation of the Government's Social Program (PsGouv) such as the acquisition of school kits, the building of vocational training facilities, etc.