SUMMARY OF THE NOTICE ON BUDGET IMPLEMENTATION AT END SEPTEMBER 2016 TO THE COUNCIL OF MINISTERS

Transcription

1 SUMMARY OF THE NOTICE ON BUDGET IMPLEMENTATION AT END SEPTEMBER 2016 TO THE COUNCIL OF MINISTERS I- Resources (cf. annex 1 & 2) The resources mobilised at end September 2016 stood at billion against a predicted billion, representing an implementation rate of 99.6%. These outputs included billion in budgetary resources (97.8% of total revenues) and 84.9 billion in treasury resources. 1. Budgetary resources: billion against a predicted billion, representing an implementation rate of 99.4%. These outputs were composed of 88.9% domestic resources and 11.1% external resources. Domestic resources: billion against a target of billion ; tax revenues: billion against a target of billion (implementation rate of 97.5% ). This result is primarily attributable to the following taxes and duties: export taxes (DUS): billion with a negative difference of 28.5 billion linked to lower volumes of cocoa exports than predicted ( tonnes exported against tonnes anticipated). import taxes on oil products: billion against a target of billion, representing a negative difference of 9.2 billion justified by a lower volume of diesel released for consumption than the predicted million litres, and by less favourable taxation levels than anticipated (premium fuel: francs/litre against a target of francs/litre and diesel: francs/litre against a target of francs/litre). import taxes on general merchandise: billion, registering a negative difference of 7.6 billion, relating to lower average prices of the merchandise released for consumption than predicted (332.8 FCFA/kg received against a prediction of FCFA/kg). domestic value-added tax (TVA): billion against a predicted billion, representing a gap of 7.6 billion due to lower returns from spontaneous payments (203.9 billion collected against billion expected) and a higher than expected level of reimbursements of TVA payments (28.2 billion charged to the DGI against 25.3 billion expected). taxes on beverages and tobacco: 23 billion, a poorer performance than expected by -5.3 billion, due to the relocation of the production of certain 1 /8

2 categories of cigarettes (Imperial Tobacco to Benin) and drinks (SOLIBRA to Burkina Faso) due to the rise in excise duty rates. gas revenues: 41.9 billion against a target of 45.1 billion, representing a negative difference of 3.2 billion linked to a lower quantity of gas invoiced than predicted. tax on investment income (IRVM): 67.5 billion against a predicted 71.1 billion, representing a gap of 3.6 billion linked primarily to IRVM (-3 billion) due to a lower than anticipated distribution of dividends. licensing fees for coffee/cocoa: 88.4 billion, registering a negative difference of 2.6 billion due to lower than predicted quantities of cocoa being formally licensed. However, the impact of this underperformance has been mitigated by the performance of the Business Profits Tax (BIC) excluding oil and gas (+4.7 billion) and the tax on income and earnings (+3.8 billion). non-tax revenue: 79.2 billion against a predicted 63.5 billion, largely due to the integration of additional C2D resources (+14.3 billion) which were not initially expected. issue of government bonds: billion including billion in Treasury bonds, billion in bond issues and billion in government bonds, including billion under the SUKUK. External resources: billion against a target of billion, representing an implementation rate of 113.9%. These include withdrawals on loan projects (256.4 billion) and grant projects (96.7 billion), and budget support (73.8 billion under C2D). 2. Cash resources: 84.9 billion including 71.5 billion allocated to the reimbursement of TVA payments and 13.4 billion in TVA receipts to be redistributed to the electricity sector. II- Expenditure (cf. annex 1) The expenditure made by end September 2016 totals billion against a target of billion (representing an implementation rate of 99%). This includes billion in budgetary expenditures (98.1%) and 74.7 billion in cash transactions (1.9%). 1- The budgetary expenditures comprise the following: public debt : billion including billion in domestic debt and billion in foreign debt; personnel costs: billion against a predicted billion, representing underuse totalling 28.2 billion due largely to the delay in transferring the balance of the initial appointment files to new teachers graduating from the CAFOPs. 2 /8

3 subscription costs: 50.6 billion against an anticipated 54.7 billion, which include electricity consumption (40.1 billion), telephone costs (7.1 billion) and water (3.4 billion). subsidies and other transfers: billion including primarily: subsidies for private schools (100.6 billion), subsidies for National Public Institutions (51.7 billion), school bursaries and kits (40.1 billion), transfers to embassies and representations of the Ivory Coast abroad (16.4 billion), transfers to communities and districts (13.9 billion) and the subsidy to the cotton sector (6.8 billion). other operating expenditures: billion against a predicted billion. This primarily includes operating costs of services (382.5 billion), targeted social expenditure (2.7 billion) and expenditure linked to supplying fuel to the army (6.2 billion). security and election expenditure: 94.6 billion including expenditure linked to the activities of the National Security Council (61 billion), elections (25.4 billion) and the Coordination, Monitoring and Reintegration Unit (formerly ADDR) (7.4 billion). capital expenditure: billion against a target set at billion, representing an implementation rate of 101.2%. 68.1% of this expenditure was financed by domestic resources and 31.9% by external resources. 2- Cash transactions: 74.7 billion deriving from reimbursements of TVA payments (71.5 billion) and the repayment to the electricity sector of its share of TVA receipts (3.2 billion). III- Analysis of the absorption capacity of investments (cf. annex 3) Capital expenditure (excluding security and election expenditure) made by end September 2016 totalled billion, representing an implementation rate of 53% of annual allocations, which is lower than the 60.3% implementation rate at end September Analysis of the implementation of capital expenditure according to the absorption capacity of the Ministries and Institutions may be summarised as follows: Twenty nine (29) ministries and institutions have implementation rates of less than 75% of their investment loans; Fourteen (14) ministries and institutions have implementation rates of 75% or more of their investment loans. IV- Analysis of pro-poor expenditure (cf. annex 4) Expenditure for fighting poverty and reducing social disparity stood at billion against a minimum target of billion, representing an implementation rate of 105.9%. V- Balance of payments 3 /8

4 Payments made by public accountants at end September 2016 totalled billion for an overall payment mandate of billion. The payments made include: Conclusion public debt: billion ; operating expenditures: billion (personnel: billion, transfers and subsidies: billion, other expenses: billion); investments: billion. Budget implementation at the end of the third quarter of 2016 was characterised by a mobilisation of resources which is almost in line with objectives (99.6%) and operational expenditure contained within the limits of the targets fixed to maintain budgetary balance. Capital expenditure, which is not subject to regulation, recorded an implementation rate of 101.2% of the target at end September For the end of the year 2016, efforts to mobilise resources and control expenditure will be continued, while prioritising capital expenditure and the fight against poverty. This is the state of the economy at the time of this budgetary implementation notice at end September 2016, subject to approval by the Council of Ministers. 4 /8

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7 ANNEX 3 : IMPLEMENTATION STATUS OF CAPITAL EXPENDITURE (EXCLUDING CONFLICT EXPENDITURE) BY MINISTRIES AND INSTITUTIONS AT END SEPTEMBER 2016 Ministries/Institutions Allocation 2016 (budget) (A) Ministry of African Integration and Ivorians Abroad Ministry of Technical and Professional Training Ministry of Human Rights and Public Liberties Ministry of Industry and Mines Ministry of Animal Husbandry and Fisheries Resources Ministry for Women, Family and Child Protection Ministry of Sports and Recreation Ministry of Culture and Francophony Ministry of Environment and Sustainable Development Ministry of Economic Infrastructure Ministry of Urban Hygiene and Sanitation Ministry of Communication Ministry of Construction and Urban Development Ministry of Water and Forests Ministry of Tourism Ministry of State, Ministry of Interior (Internal Security) Ministry of Agriculture and Rural Development Ministry of Entrepreneurship, Craft and SME Promotion Secretary of State for the Economy and Finance Presidency of the Republic Ministry of Housing and Social Housing Ministry of Foreign Affairs Ministry of Health and Public Hygiene Ministry of the Civil Service and of Modernising Administration Secretary of State for the Budget and State Portfolio Ministry of Planning and Development Ministry of National Education Prime Minister s Office Ministry of Justice Allocatio n 2016 (adjusted 1 budget) (B) SIGFiP Implementation (C) SIGFiP Implementation Rate (D) = C / A Implementation end September 2016 (inc. prepayments) In FCFA Implementation rate Baseline budget Adjusted baseline budget 0 0,00% 0 0,0% 0,0% ,00% ,0% 3,0% ,00% ,0% 5,0% ,80% ,8% 68,1% ,30% ,3% 16,0% ,30% ,3% 16,3% ,70% ,7% 19,7% ,50% ,5% 22,5% ,50% ,5% 22,5% ,30% ,3% 28,3% ,40% ,4% 28,4% ,60% ,6% 33,6% ,00% ,0% 42,0% ,30% ,3% 43,3% ,80% ,8% 43,8% ,70% ,7% 44,7% ,70% ,7% 45,7% ,00% ,0% 48,0% ,10% ,1% 48,1% ,30% ,1% 48,1% ,90% ,9% 48,9% ,20% ,2% 54,2% ,10% ,3% 56,3% ,00% ,0% 57,0% ,00% ,0% 65,9% ,00% ,0% 65,0% ,40% ,4% 70,1% ,30% ,4% 69,4% ,70% ,7% 69,7% Prosecutor General s Office ,00% ,0% 75,0% National Assembly ,00% ,0% 75,0% Independent Electoral Commission ,00% ,0% 75,0% Ombudsman of the Republic ,00% ,0% 75,0% Ministry of Solidarity, Social Cohesion and Victim Compensation ,60% ,0% 77,0% Ministry of Higher Education and Scientific Research Ministry for the Promotion of Youth, Youth Employment and Civic Service ,30% ,3% 80,3% ,70% ,7% 86,7% Court of Auditors ,40% ,4% 87,4% 1 In order to assess the true absorption capacity of the ministries, their allocations have been adjusted by deducting the loans assigned to certain projects, particularly grants made by lenders themselves. 7 /8

8 Ministry of the Digital Economy and Postal Service Ministry of Employment and Social Protection Ministry of Oil and Energy Ministry of Transport ,50% ,5% 88,5% ,20% ,2% 91,2% ,70% ,7% 99,7% ,80% ,3% 108,3% Ministry of Trade ,90% ,0% 162,0% Secretary of State for Defence Total Special accounts OVERALL TOTAL Source : DGBF ,60% ,8% 196,8% ,1% ,3% 54,0% ,1% ,1% 66,1% ,8% % 54,7% 8 /8

9 ANNEX 4 : IMPLEMENTATION STATUS OF PRO-POOR EXPENDITURE END SEPTEMBER Amounts in units Implementation end Implementation Budget September 01 Agriculture and rural development General administration Agricultural development and promotion programme Training and coaching Hydro-agricultural development Other investments in rural areas (FRAR,FIMR) Animal production and fishery resources General administration / training and coaching Support for livestock breeding and milk production Fishing and aquaculture Education General administration Preschool and primary education Literacy General secondary, technical and professional education Higher education and scientific research Presidential Emergency Programme / Education Section Health General health administration Primary healthcare system Preventive healthcare (extended vaccination programme) Programme to fight disease and endemics Child and maternal health and nutrition HIV/AIDS University Hospitals and specialised medical institutions Presidential Emergency Programme / Health Section Water and Sanitation Access to drinking water and sanitation Protecting the environment and fighting pollution Presidential Emergency Programme / Hygiene and Sanitation Section Presidential Emergency Programme / Drinking Water Section Energy Access to electricity Presidential Emergency Programme / Electricity Section Roads and infrastructure Maintenance of rural roads Construction of engineering structures Other roadworks Presidential Emergency Programme / Maintenance and Planning Section Social Affairs General administration Training for women Orphanages, nurseries and social centres Training of support staff Caring for the destitute, war victims and victims of disasters Decentralisation (excluding education, health and agriculture) Decentralisation Reconstruction and renovation Reconstruction and renovation Housing and social housing Other areas in the fight against poverty Promotion and integration of young people DSRP support and monitoring Development of tourism and craftwork TOTAL Source: SIGFiP-DGBF 9 /8