REPUBLIC OF COTE D IVOIRE Union Discipline Labor

Transcription

1 MINISTRY TO THE PRIME MINISTER, IN CHARGE OF BUDGET AND STATE PORTFOLIO SUMMARY OF COMMUNICATION IN THE COUNCIL OF MINISTERS ON BUDGET EXECUTION AS OF THE END OF MARCH 2016 REPUBLIC OF COTE D IVOIRE Union Discipline Labor I- Resources 1 (cf. annex 1 & 2) The resources mobilized as of the end of March 2016 amount to billion CFA francs for a target set at billion CFA francs, corresponding to an achievement rate of 103%. This achievement includes billion CFA francs of budgetary resources (98.2% of total revenue) and 20.4 billion CFA francs of cash resources. 1. Budgetary resources: billion CFA francs for a forecast of 1,106 billion CFA francs, representing an achievement rate of 103.2%. This achievement includes 83.6% of domestic resources and 16.4% of external resources. Domestic resources: billion CFA francs against a forecast of billion CFA francs (achievement rate of 107.1%); Tax revenues: billion CFA francs against a target of billion CFA francs (achievement rate of 108.3%). This is mainly due to: Tax on oil products: 85.1 billion CFA francs with a surplus of 21.3 billion CFA francs, due to the favorable evolution of international crude oil prices and a higher consumption of fuel than anticipated; Export taxes (Single Export Tax): billion CFA francs with a surplus of 21.4 billion CFA francs related to a higher than expected volume of exported cocoa ( thousands of tons) and a more favorable than projected cocoa CIF price ( CFA francs/kg against a projected 1600 francs/kg); Coffee-cocoa registration duties : 55.0 billion CFA francs with a positive spread of 16.8 billion CFA francs compared to the target that can be explained by the relatively higher amount of cocoa subject to the formality of registration (+39.5%) and better prices than those used in the projections (1651 CFA francs/ kg against 1600 CFA francs/ Kg as projected). General merchandise: billion CFA francs against a target of billion CFA francs, representing a positive variance of 5.2 billion CFA francs related to a better growth of ordinary consumption volume (12.2% against a target 6.5%) and good recovery rate of issuances. However, the effect of these performances was offset by a deficit recorded on the telecommunication tax (-2.4 billion CFA francs) and the domestic Value Added Tax (VAT) (-2.1 billion CFA francs). Non-tax revenues: 12.4 billion CFA francs for a forecast of 12.5 billion CFA francs thanks to estate income (5.7 billion CFA francs), services receipts (4.7 billion CFA francs), and the rural investment fund (FIMR) (1.8 billion CFA francs). Issuance of government bonds: billion CFA francs including 60 billion CFA francs of Treasury bills (in 2016) and billion CFA francs from the recovering in 2016 of the SUKUK issued in December External resources: billion CFA francs against a target of billion CFA francs, representing an achievement rate of 87%. These external resources include drawings on 1 All amounts are in CFA francs 1/7

2 project-loans (129.9 billion CFA francs in line with targets) and grants to projects (57.6 billion CFA francs against a projected amount 85.6 billion CFA francs). 2. Treasury operations: 20.4 billion CFA francs of which 18.2 billion CFA francs allocated to VAT credits repayment and 2.2 billion CFA francs in VAT revenue to be allocated to the electricity sector. II- Expenditures (cf. annex 1) Expenditures by the end of March 2016 amounted to billion CFA francs against a target of billion CFA francs (i.e. an achievement rate of 86.5%). They include 987 billion CFA francs of budget expenditure (98%) and 20.4 billion CFA francs of treasury operations (2%). 1- Budgetary expenditures consist of : Public debt: billion CFA francs including 72.2 billion CFA francs of domestic debt and an external debt of 64.3 billion CFA francs; Wages and Salaries: billion CFA francs for a forecast of billion CFA francs showing an under-consumption of 16.7 billion CFA francs, mainly explained by the delay in transmitting the first payment orders files for the 2016 new recruitments to payment services; Public utility charges: 14.3 billion CFA francs against 17.4 billion CFA francs projected. They cover electricity consumption (13.4 billion CFA francs) and telephone (1 billion CFA francs). The under-consumption is explained by the water bills payment order not being issued at the end of March 2016 due to a delayed transmission; Subsidies and other current transfers: They amount to 35.3 billion CFA francs and consist primarily of subsidies to National Public Establishments (11.6 billion CFA francs), transfers to Côte d Ivoire embassies and representations abroad (4.9 billion CFA francs), subsidy to the electricity sector (1.3 billion CFA francs), scholarships and school kits (3.3 billion CFA francs) and transfers to districts and municipalities (1.6 billion CFA francs); Other current expenditures: 94.6 billion CFA francs against a forecast of billion CFA francs. They mainly include services operating expenses (94 billion CFA francs) and 0.5 billion CFA francs of targeted social spending; Investment expenditure: billion CFA francs against a target of billion CFA francs, i.e. an achievement rate of 76.6%. These expenditures were financed at 46.3% by domestic resources and at 53.7% by external resources; Post-election crisis expenditure: 13.9 billion CFA francs including expenditures relating to the National Security Council's activities (6.4 billion CFA francs), elections (4.7 billion CFA francs) and the Authority for Disarmament, Demobilization and Reintegration (2.8 billion CFA francs). 2- Treasury operations: 20.4 billion CFA francs on VAT credits repayments (18.2 billion CFA francs) and the transfer of the VAT quota allocated to the electricity sector (2.2 billion CFA francs). III- Analysis of investments absorption capacity (cf annex 3) 2/7

3 Investment expenditures (excluding post-crisis expenditures) at end-march 2016 amounted to billion CFA francs, corresponding to an execution rate of 19.9% of the annual allocations, and is lower than the level at end-march 2015 which was 27.7%. The gap is partly explained by the reorganization of the government during the first quarter The Ministry in charge of Budget sent letters to the relevant ministries to draw their attention to the need to accelerate the pace at which investment expenditures are being executed. The analysis of the investment expenditures according to ministries and institutions absorption capacity is as follows: Twenty-nine (29) ministries consumed less than 25% of their investment funds; Eleven (11) ministries and institutions registered an implementation rate between 25% and 50%; Three (03) ministries consumed more than 50% of their investment funds. Following resolution of administrative issues related to the reorganization of the government in January 2016 and increased monitoring through follow-up, (including letters to be sent to Ministers on specific projects), the absorption capacity is expected to improve in the second quarter of the year. IV- Analysis of pro-poor spending (cf annex 4) Expenses relating to the fight against poverty and reduction of social disparities amounted to 397 billion CFA francs above the floor target of billion CFA francs, reflecting an achievement rate of 114.5%. V- Payments Payments made by the Public Accountants at end-march 2016 amounted to billion CFA francs for a total of billion CFA francs of payment orders. Those payments include: Public debt : 136,6 milliards CFA francs ; Current expenditures : billion CFA francs (wages and salaries: billion CFA francs, transfers and subsidies 26.6 billion CFA francs, other current expenses: 94.5 billion CFA francs); Investment : 109,6 billion CFA francs. It is worth noting that expenditures incurred through advances amounted at 52.6 billion CFA francs, against only 20 billion CFA francs over the same period in Conclusion At the end of the first quarter of 2016, mobilization of domestic resources, especially taxes, is in line with the targets set and expenditures have been executed within the authorized limits. The trend of resource mobilization, especially domestic resources, will be maintained in the context of ongoing reforms, with a view to achieving the annual targets. As for investment expenditures, the services efforts should continue and even increase in order to improve the pace of investment execution from the second quarter as expected. 3/7

4 End-March End-March DESCRIPTION Target Implementation Target Implementation BUDGETARY RESOURCES 1 106, ,2 BUDGETARY EXPENDITURES 1 143,0 987,0 Domestic Resources 890,5 953,8 Public debt 139,7 136,6 Tax revenues 698,1 755,9 Domestic debt 73,9 72,2 General Tax Directorate (DGI) 322,9 330,3 Principal 46,9 46,8 FER included Interests 27,0 25,4 THE TREASURY 1,7 4,1 External debt 65,8 64,3 DGD DESCRIPTION Customs (excepted PCC, PCS et SGS) ANNEX 1 : BUDGETARY FRAMING (Implementation status as of the end of March 2016) (Figures in billion CFA francs) 373,5 421,5 Principal 27,2 23,7 FER included 14,9 Interests 38,6 40,6 Non-tax revenues 12,5 12,4 Current expenditures 540,5 487,3 Privatization and asset sales 0,0 0,0 Staff 359,8 343,1 Transfer of businesses 0,0 0,3 Subscription 17,4 14,3 Estate incomes DGI 6,2 5,7 Subsidies and transfers 57,0 35,3 Telecommunication License 0,0 0,0 Including subsidy to the electricity sector 5,7 0,0 Additional resources Integration C2D 0,0 0,0 Other operating expenses 106,3 94,6 Rural area investment funds 3,5 1,8 Army fuel 3,1 0,0 Other non-tax revenues 2,8 4,7 Targeted social expenses 0,0 0,5 Services operating expenses 103,1 94,0 Borrowing on financial and capital markets 180,0 185,5 Post-crisis expenditures 7,3 13,9 Bond loans 120,0 0,0 Domestic funding 7,3 13,9 Treasury bills and bonds 60,0 185,5 Including investment 0,0 7,8 Eurobonds 0,0 0,0 External funding 0,0 0,0 External resources 215,4 187,4 Investment expenditures 455,5 349,2 Budget support 0,0 0,0 Domestic funding 240,1 161,8 IMF 0,0 0,0 Presidential Emergency Program 26,4 26,4 World Bank 0,0 0,0 Construstion of Soubré dam 3,5 3,5 French Development Agency (AFD) (C2D) 0,0 0,0 C2D Projects 36,9 0,0 ADB 0,0 0,0 Universal Health Care Coverage (CMU) 0,0 4,1 EU 3 rd bridge construction 0,0 0,0 FIMR Investment 3,5 1,8 External funding 215,4 187,4 External funding 215,4 187,4 Programs donations 0,0 0,0 Projects donations 85,6 57,6 Projects donations 85,6 57,6 Projects loans 129,8 129,9 Projects loans 129,8 129,9 TREASURY OPERATIONS (II) 21,7 20,4 TREASURY OPERATIONS (II) 21,7 20,4 VAT revenues used to repay VAT credits 18,2 18,2 Reimbursement of VAT credits 18,2 18,2 Electricity sector VAT 3,5 2,2 VAT repaid to electricity sector 3,5 2,2 TOTAL GENERAL 1 127, ,6 TOTAL GENERAL 1 164, ,4 4/7

5 ANNEX 2 EVOLUTION OF BUDGETARY TAX REVENUES (Implementation status as of the end of March) DESCRIPTION Target END-MARCH Implementation In billion CFA francs GAP (Imp-Targ) BUDGETARY TAX REVENUES 698,1 755,9 57,8 General Tax Directorate (DGI) 322,9 330,3 7,5 Direct taxes 139,6 139,2-0,5 Business profits tax on oil and gas 13,0 10,3 - Business profits tax on oil 0,0 0,0 - Business profits tax on gas 13,0 10,3-2,7 Other direct taxes excepted oil and gas 126,6 128,9 - Business profit tax excepted on oil 11,2 12,4 1,2 - Combined tax and Income Tax Prepayment for Informal Sector (AIRSI) 5,1 4,8-0,2 Taxes on income and payroll 100,8 103,1 2,2 Contribution for crisis recovery (former Contribution for National Reconstruction -CRN-) 0,0 0,0 Property taxes 0,0 0,0 0,0 Capital gains taxes /IRC 9,5 8,6-0,9 Indirect taxes 183,2 191,2 7,9 VAT (excluded electricity sector share) 75,6 73,5-2,1 Tax on Stock Exchange Operation (TOB) 13,7 14,0 0,3 Taxes on beverages and tobacco 9,8 9,5-0,3 Registration and stamp duties 52,1 67,8 15,7 Including cocoa-coffe registration 38,2 55,0 16,8 Patents and Licenses 4,8 5,3 0,6 Taxes on oil exploitation 0,0 0,0 Taxes on gas exploitation 6,5 4,4-2,1 Taxes on telecommunication 14,7 12,3-2,4 Special taxes on telephone services 5,7 3,8-1,8 Taxes on rubber 0,0 0,0 Taxes on mining additional profit 0,0 0,0 Other indirect taxes 0,4 0,4 TREASURY 1,7 4,1 2,4 Direct taxes 1,5 3,7 2,3 Taxes on income and payroll 1,5 3,7 2,3 Property taxes (y/c RS 15% Rent) 0,0 0,0 Indirect taxes 0,2 0,3 0,1 RS 10% 0,0 0,0 Patents and licenses 0,0 0,0 Stamps and car registration stickers 0,2 0,3 Other indirect taxes 0,0 0,0 DGD (Customs excepted PCC, PCS et SGS) 373,5 421,5 47,9 Import duties and taxes 244,3 270,8 26,5 Taxes on oil products 63,8 85,1 21,3 Taxes excluded oil products (excepted SGS, PCS et PCC) 180,5 185,7 5,2 Export taxes 129,2 150,6 21,4 5/7

6 ANNEXE 3: IMPLEMENTATION STATUS OF INVESTMENT EXPENDITURES (EXCLUDING POST CRISIS SPENDING) BY MINISTRY AND INSTITUTIONS AS OF THE END OF MARCH 2016 Ministries/Institutions Allocation 2016 (budget) Allocation 2016 (adjusted budget) 2 Implementation End-March 2016 (In CFA francs) Implementation rate Based on Based on adjusted budget budget Ministry of Technical Education and vocational Training ,0% 0,0% Ministry of Woman empowerment, Family and Child welfare ,0% 0,0% Ministry of Solidarity, Social cohesion and Victims compensation ,0% 0,0% Ministry of Human Rights and Public freedoms ,0% 0,0% Ministry of African integration and Ivorians abroad ,0% 0,0% Ministry of Urban waste management and Sanitation ,0% 0,0% Ministry of Housing and social housing ,0% 0,0% Ministry of Education ,1% 0,1% Ministry of Sports and Leisure ,2% 0,2% Ministry of Waters and Forestry ,2% 0,2% Ministry of Environment and Sustainable Development ,3% 0,3% Ministry of Industry and Mining ,3% 2,6% State Ministry of Interior and Security ,3% 1,3% Ministry of Communication ,1% 2,1% Ministry of Livestock and Fishery ,2% 2,4% Ministry of Construction and Urbanism ,4% 2,4% Ministry of Culture and Francophonie ,7% 2,7% Ministry of Foreign Affairs ,1% 3,1% Ministry of Digital economy and Post office ,3% 3,3% Ministry of Economic Infrastructures ,8% 3,8% Ministry to the Prime Minister in charge of Economy and Finance ,4% 4,4% Ministry of National Entrepreneurship, Crafts and SME promotion ,4% 5,4% Ministry of Civil Service and Modernization of Administration ,2% 6,2% Ministry Delegate to the Presidency of the Republic, in charge of Defense ,0% 11,0% Ministry of Tourism ,3% 13,3% Ministry for Employment and Social welfare ,3% 17,3% Ministry to the Prime Minister in charge of Budget and State Portfolio ,6% 25,6% Ministry of Trade ,9% 19,9% Ministry of Agriculture and Rural Development ,9% 24,9% National Assembly ,0% 25,0% Independant Electoral commission ,0% 25,0% General Prosecutor Office ,0% 25,0% Mediator ,0% 25,0% Ministry of Justice ,9% 29,9% Prime Minister s Office ,2% 31,2% Ministry of Petroleum and Energy ,1% 33,1% General Accounting Office ,4% 37,4% Ministry of Health and Public hygiene ,3% 38,3% Presidency of the Republic ,7% 47,7% Ministry of Plan and Development ,9% 47,9% Ministry of Youth advancement, Youth employment and civic Service ,2% 51,2% Ministry of Higher Education and Scientific Research ,8% 76,8% Ministry of Transport ,0% 91,0% Total ,8% 21,1% Special Accounts ,7% 21,7% General total ,9% 21,2% Source : DGBF 2 In order to assess the ministries actual absorption capacity, their allocations were adjusted by deducting credits assigned to certain projects, especially grants implemented by the donors themselves. 6/7

7 ANNEXE 4: IMPLEMENTATION STATUS OF PRO-POOR EXPENDITURES AS OF THE END OF MARCH Amounts in unit Implementation as of IMPLEMENTATION Budget end-march 01 Agriculture and Rural Development General Administration Development and agriculture promotion program Training and mentoring Hydro-agricultural planning Other rural areas investments (FRAR, FIMR) Fishery and Livestock General Administration / Training and mentoring Support for livestock and dairy production Fishing and aquaculture Education General Administration Preschool and primary education Literacy programs General secondary and technical education and vocational training Higher education and scientific research Presidential Emergency Program / Education component Health Health General Administration Health-care system Preventive health care (extended vaccination program) Program against diseases and epidemics Maternal and child health care and nutrition HIV/AIDS Teaching hospitals and specialized medical institutions Presidential Emergency Program / Health component Water and sanitation Acces to drinking water and sanitation Protection of environment and fight against pollution Presidential Emergency Program / Safety and sanitation component Presidential Emergency Program / Drinking water component Energy Acces to electricity Presidential Emergency Program / Electricity component Roads and bridges Maintenance of rural roads Bridges construction Other road works Presidential Emergency Program / Maintenance and landscaping Social Affairs General Administration Training for women Orphanages, nurseries and community centers Support staff training Care of indigents, victims of war and disasters Decentralization (except education, health and agriculture) Decentralization Reconstructions et rehabilitations Reconstruction et rehabilitation Housing and social housing Other areas of fight against poverty Young people advancement and integration Support and follow-up of Poverty Reduction Strategy Paper (PRSP) Development of tourism and handicraft TOTAL Source: SIGFiP-DGBF 7/7