SUMMARY OF COMMUNICATION IN THE COUNCIL OF MINISTERS ON BUDGET EXECUTION AS THE END OF JUNE

Transcription

1 MINISTRY TO THE PRIME MINISTER, IN CHARGE OF BUDGET AND STATE PORTFOLIO REPUBLIC OF CÔTE D IVOIRE Union Discipline Labor SUMMARY OF COMMUNICATION IN THE COUNCIL OF MINISTERS ON BUDGET EXECUTION AS THE END OF JUNE Budget execution in the first half 2016 was characterized by significant efforts of resource recovery and control of operating costs within the limits set by the Finance Act. It received a favorable socio-economic climate with the ongoing efforts to consolidate social cohesion and economic activity dynamism. I- CONCERNING RESSOURCES The resources mobilized as of the end of June 2016 amount to 2,666.9 billion CFA francs for a target set at 2,407.5 billion, or an achievement rate of %. These achievements include 2, billion of budgetary resources (98.2% of total revenue) and 48.8 billion of cash resources. 1. The budgetary resources: 1,141.2 billion for a forecast of 2,360.2 billion, representing an achievement rate of %. These achievements comprise 87.5% of domestic resources and 12.5% of external resources. Domestic resources: 2,291.5 billion against a forecast of 2,028 billion (achievement rate of 113%); Tax revenues: 1,593 billion against a forecast of 1,488.4 billion (achievement rate of 107%). This result is mainly due to performances achieved on the following taxes: Tax on oil products: billion with a tax budget surplus of 59.7 milliards, due to a surplus of on-road fuel volume of 652 million liters (+22.8 billion of liters of diesel and million liters of premium grade gazoline) and also due to a more favorable than projected gazole taxation (244 francs/liter achieved against projected). Export taxes (Single Export Tax): billion, with a surplus of 16.2 billion compared to the target; related to a cocoa CIF price higher than projected (1, francs/kg achieved against 1600 francs/kg projected); and to higher volume of cocoa exportation (beans and processed): 884,849 tones with a surplus of 27,762 tones. Coffee-cocoa registration duties: 73.1 billion against 57, 2 billion projected. The positive spread of 16 billion compared to the target set on first semester is explained by the factor of cocoa volume subject to registration formality (+24% extra) and the price factor (1651 FCFA/Kg against 1600 FCFA/Kg projected). Tax on income and payroll: billion with a positive gap of 14.6 billion due especially to good employment growth and to offset payment of arrears (7.1 billion) on overdue tax on salary of some National Public Institutions. Oil revenues: 11.7 billion originally expected in the second half of 2016, but cashed over the first half of However, the effect of these performances was offset by low tax collection on Industrial and Commercial Profit, oil sector excluded (- 5.9 billion), on investment income (- 2.7 billion), on telecommunication (- 4.9 billion) and on gas revenue. Non-tax revenue: 43.6 billion for a forecast of 28.6 billion thanks mainly to services receipts (22.5 billion against 6, 9 billion projected), estate income (15 billion against 12 billion projected), rural investment fund (3.4 billion). 1/7

2 Issuance of government securities: billion including billion of bond issues, 110 billion of Treasury bills and 265 billion of Treasury bonds of which 135 billion of recovering SUKUK issued in December External resources: billion for a target of billion, i.e. an achievement rate of 98.3%. They include drawings on projects-loans (175, 4 billion), donations to projects (77, 5 billion) budget support (73, 8 billion). 2. Treasury operations: 48.8 billion of which 40.5 billion allocated to VAT credits repayment and 8.3 billion of VAT revenue to be repaid to the electricity sector. II- Concerning Expenditure Expenditure implemented by end of June 2016 amounted to 2,490.7 billion against a target of 2,603 billion i.e. an achievement rate of 95.7%. They include billion of budget expenditure (98%) and 48.8 billion of Treasury operations (2%). 1. Budgetary expenditures consist of: Public debt: billion including 320 billion of domestic debt and an external debt of 243,3 billion; Staff costs: billion for a forecast of billion showing an under consumption of 25.1 billion, mainly explained by the delay in transmitting to Payment Services the first payment orders files for 2016 new recruitments. To that end, technical sessions are being held between the Civil Service and Payment Services in order to speed up files processing. Public utility charges: 34 billion against 34.9 billion projected. They cover electricity consumption (26.7 billion), telephone (4, 5 billion) and water (2.8 billion). Subsidies and other transfers: billion mainly consist of grant to National Public Establishments (33, 8 billion), transfers to embassies and Côte d Ivoire representations abroad (10. 9 billion), subsidy to the electricity sector (2.6 billion), scholarships and school kits (19. 2 billion); transfers to districts and communities (5.5 billion) Other operating expenses: billion against a projection of billion and mainly include services operating expenses (214.7 billion). Investment expenditure: billion against a target of billion, i.e. an achievement rate of 83.7%. These expenditures were financed at 64.1% on domestic resources and at 35.9 % on external resources. Security and election expenditure: 62.1 billion including expenditures incurred under the National Security Council's activities (33.9 billion), elections (20.7 billion) as well activities of the Unit of Coordination, Monitoring and Reintegration [ex-addr] (6.7 billion). 2. Treasury operations: 48.8 billion on reimbursements of VAT credits and VAT paid back to the electricity sector (8.3 billion). III- ANALYSIS OF INVESTMENTS ABSORPTION CAPACITY Investment expenditures (excluding security and election expenditures) implemented at end-june 2016 amounted to billion corresponding to an implementation rate of 38.3% of the annual allocations. This rate is lower than the implementation level of 48% at end-june The analysis of implementation of investment expenditures according to ministries and institutions absorption capacity is as follows: Twenty-nine (29) Ministries consumed less than 50% of their investment funds; 2/7

3 Five (05) ministries and institutions registered an implementation rate of 50%; Ten (10) ministries and institutions consumed more than 50% of their investment funds. IV- ANALYSIS OF PRO-POOR SPENDING Expenses relating to the fight against poverty and reduction of social disparities were set at billion beyond the floor target of billion reflecting an achievement rate of 103.9%. V- PAYMENTS STATUS Payments made by the Public Accountants at end-june 2016 amounted to 2,043.4 billion for 2,490.7 billion of global orders to pay. Payments include : Public debt : billion ; Operating expenses: 1,087.4 billion (staff: billion, transfers and subsidies: billion, other expenses: billion); Investment : billion. CONCLUSION At the end of the first quarter 2016, mobilization of budget revenues was relatively higher than projections, while implemented expenditures were contained within planned limits, achieving budget balances that reflect control of balanced budgets. For the rest of 2016, new significant expenditures occurred making the budget management very difficult (25 billion under the Lagoon Bay Development Project; 46 billion of credit enhancement for 3000 primary classes project construction; 45 billion of security expenditures for the fight against terrorism; 16.5 billion for revision of the electoral list; 16 billion and 15 billion respectively under military food liabilities and Road Maintenance Fund; taking into account expenditures pertaining to referendum). The inclusion of these new expenditures requires further tax revenue collection efforts and especially a strict budgetary discipline in the expenditures execution, notably by limiting the use of cash advances and by not introducing other new spending. These efforts are essential to be in compliance with the fiscal balance of -3.8% of GDP agreed with the IMF. 3/7

4 ANNEX 1: BUDGETARY FRAMING ( status as end of June 2016) (Figures in billion CFA Francs) DESCRIPTION Initial Budget End June End June DESCRIPTION Initial Budget Objective Objective BUDGET RESOURCES 5 474, , ,2 BUDGETARY EXPENDITURES 5 474, , ,0 Domestic Resources 4 538, , ,5 Public Debt 1 259,9 566,4 563,3 Tax revenues 3 091, , ,0 Domestic Debt 778,3 325,6 320,0 General Tax Directorate (DGI) 1 633,2 781,3 807,2 Principal 631,9 232,6 232,6 Road Maintenance Fund (FER) Included 26,3 9,2 Interest 146,5 93,0 87,4 THE TREASURY 6,4 3,2 5,7 External Debt 481,5 240,8 243,3 Customs (DGD ) Excepted PCC, PCS and SGS) 1 451,9 703,8 780,1 Principal 309,9 155,2 152,2 Road Maintenance Fund (FER) Included 62,5 33,8 Interest 171,6 85,6 91,1 Non-tax revenues 255,4 28,6 43,6 Current expenditures 2 444, , ,1 Privatization and asset sales 30,5 0,0 0,0 Staff 1 428,9 716,6 691,5 Transfer of businesses 0,7 0,0 0,4 Subscription 72,9 34,9 34,0 Estate income DGI 23,2 12,0 15,0 Subsidies and transfers 367,1 164,9 171,4 Telecommunication License 150,0 0,0 0,0 Other operating expenses 575,5 216,3 215,2 Additional resources Integration C2D 0,0 0,0 0,0 Army fuel 12,5 6,3 0,0 Rural area investment funds 13,9 7,0 3,4 Targeted social expenses 6,8 1,7 0,5 Other non-tax revenues 37,1 9,6 24,8 Services operating expenses 556,2 208,3 214,7 Borrowing on financial and capital markets 1 191,6 511,0 654,9 Security and elections expenditures 29,0 14,5 62,1 Bond loans 270,0 279,9 Domestic funding 29,0 14,5 62,1 Treasury bills and bonds 241,0 375,0 Including investment 5,2 0,0 12,6 Eurobonds 0,0 0,0 External funding 0,0 0,0 0,0 External resources 935,9 332,2 326,7 Investment expenditures 1 741,2 841,9 704,4 Budget support 217,7 0,0 73,8 Domestic funding 1 023,0 509,7 451,6 IMF 0,0 0,0 0,0 Presidential Emergency Program 132,0 66,0 66,0 World Bank 55,0 0,0 0,0 Construstion of Soubré dam 14,2 7,1 7,1 French Development Agency (AFD) (C2D) 147,6 0,0 73,8 C2D Projects 147,6 73,8 44,1 ADB 0,0 0,0 Universal Health Care Coverage (CMU) 10,2 11,7 10,2 EU 15,1 3 rd bridge construction 0,0 0,0 0,0 FIMR Investment 13,9 44,4 1,8 External funding 718,2 332,2 252,9 External funding 718,2 332,2 252,9 Programs donations 0,0 0,0 Projects donations 218,5 95,5 77,5 Projects donations 218,5 95,5 77,5 Projects loans 499,7 236,7 175,4 Projects loans 499,7 236,7 175,4 TREASURY OPERATIONS (II) 47,4 48,8 TREASURY OPERATIONS (II) 47,4 48,8 VAT revenues used to repay VAT credits 40,4 40,4 Reimbursement of VAT credits 40,4 40,4 Electricity sector VAT 6,9 8,3 VAT repaid to electricity sector 6,9 8,3 GENERAL TOTAL 5 474, , ,9 GENERAL TOTAL 5 474, , ,7 4/7

5 ANNEX 2 EVOLUTION OF BUDGETARY TAX REVENUES ( status as end of June 2016) In billions of CFA Francs DESCRIPTION Objective END JUNE GAP (Impl-Targ) BUDGETARY TAX REVENUES 1 488, ,0 104,6 General Tax Directorate (DGI) 781,3 807,2 25,9 Direct taxes 440,6 453,8 13,1 Business profits tax on oil and gas 25,5 28,7 - Business profits tax on oil 0,0 8,2 - Business profits tax on gas 25,5 20,5-5,0 Other direct taxes excepted oil and gas 415,1 425,0 - Business profit tax excepted on oil 170,3 164,4-5,8 - Combined tax and Income Tax Prepayment for Informal Sector (AIRSI) 10,6 10,1-0,5 Taxes on income and payroll 198,7 210,8 12,1 Contribution for crisis recovery (former Contribution for National Reconstruction -CRN-) 0,0 0,1 Property taxes 0,0 6,8 6,8 Capital gains taxes /IRC 35,5 32,8-2,7 Indirect taxes 340,7 353,4 12,8 VAT (excluded electricity sector share) 150,6 151,9 1,2 Tax on Stock Exchange Operation (TOB) 27,3 27,8 0,5 Taxes on beverages and tobacco 19,8 18,0-1,9 Registration and stamp duties 82,4 100,0 17,6 Including cocoa-coffe registration 57,2 73,1 16,0 Patents and Licenses 6,7 6,8 0,1 Taxes on oil exploitation 0,0 3,5 Taxes on gas exploitation 11,6 8,8-2,8 Taxes on telecommunication 29,4 24,5-4,9 Special taxes on telephone services 11,8 11,0-0,8 Accises et autres taxes indirectes 0,9 1,1 TREASURY 3,2 5,7 2,5 Direct taxes 2,6 5,1 2,5 Taxes on income and payroll 2,6 5,1 2,5 Property taxes (y/c RS 15% Rent) 0,0 0,0 Indirect taxes 0,6 0,6 0,0 Stamps and car registration stickers 0,6 0,6 Other indirect taxes 0,0 0,0 DGD (Customs excepted PCC, PCS et SGS) 703,8 780,1 76,2 Import duties and taxes 494,2 554,3 60,1 Taxes on oil products 128,4 188,1 59,7 Taxes excluded oil products (excepted SGS, PCS and PCC) 365,8 366,2 0,4 Export taxes 209,7 225,8 16,2 5/7

6 ANNEX 3: IMPLEMENTATION STATUS OF INVESTMENT EXPENDITURES (EXCLUDING POST CRISIS SPENDING) PER MINISTRY AND INSTITUTIONS AS OF THE END OF JUNE 2016 Ministries / Institutions Allocation 2016 (budget) (A) Allocation 2016 (adjusted budget) 1 (B) SIGFiP (C) Ministry of African integration and Ivorians abroad rate SIGFiP (D) = C / A End June 2016 (y/c advances) In FCFA rate Based on budget Based on adjusted budget 0,0% 0 0,0% 0,0% Ministry of Housing and social housing ,0% 0 0,0% 0,0% Ministry of Technical Education and vocational Training ,4% ,4% 0,4% Ministry of Human Rights and Public freedoms ,3% ,3% 2,3% Ministry of Woman empowerment, Family and Child welfare ,9% ,9% 4,9% Ministry of Livestock and Fishery ,1% ,3% 6,6% Ministry of Education ,7% ,7% 7,1% Ministry of Industry and Mining ,8% ,8% 54,3% Ministry of Urban waste management and Sanitation ,4% ,7% 15,7% Ministry of Sports and Leisure ,9% ,9% 10,9% Ministry of Construction and Urbanism ,1% ,1% 15,1% Ministry of Foreign Affairs ,5% ,5% 16,5% Ministry of National Entrepreneurship, Crafts and SME promotion ,7% ,7% 16,7% Ministry of Culture and Francophonie ,3% ,3% 18,3% Ministry of Economic Infrastructures ,8% ,8% 18,8% Ministry of Environment and Sustainable Development ,3% ,3% 25,3% Ministry of Tourism ,6% ,6% 26,6% Ministry of Civil Service and Modernization of Administration Ministry of Solidarity, Social cohesion and Victims compensation ,1% ,1% 27,1% 9,0% ,1% 28,1% Ministry of Waters and Forestry ,7% ,7% 28,7% Ministry to the Prime Minister in charge of Economy and Finance ,6% ,2% 35,2% Ministry of Communication ,7% ,1% 30,1% Ministry of Justice ,7% ,7% 35,7% Ministry of Petroleum and Energy ,8% ,9% 42,9% State Ministry of Interior and Security ,1% ,1% 38,1% Ministry to the Prime Minister in charge of Economy and Finance ,6% ,6% 48,6% Ministry of Health and Public hygiene ,3% ,7% 48,7% Prime Minister s Office ,6% ,7% 48,7% National Assembly ,0% ,0% 50,0% Mediator ,0% ,0% 50,0% General Accounting Office ,0% ,0% 50,0% Independant Electoral commission ,0% ,0% 50,0% General Prosecutor Office ,0% ,0% 50,0% Ministry of Agriculture and Rural Development ,4% ,4% 51,4% Ministry of Youth advancement, Youth employment and civic Service ,6% ,6% 58,6% Ministry of Plan and Development ,1% ,1% 65,1% Ministry of Trade ,9% ,0% 162,0% Ministry of Digital economy and Post office ,7% ,7% 82,7% Ministry of Higher Education and Scientific Research ,8% ,8% 83,8% Ministry for Employment and Social welfare ,1% ,1% 87,1% Ministry of Transport ,4% ,9% 106,9% Presidency of the Republic ,9% ,2% 118,2% Ministry Delegate to the Presidency of the Republic, in charge of Defense ,1% ,8% 194,8% Total ,2% ,8% 39,6% Special Accounts ,1% ,1% 46,1% GENERAL TOTAL ,8% ,3% 40,0% Source : DGBF 1 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 ANNEX 4: IMPLEMENTATION STATUS OF PRO-POOR EXPENDITURES AS OF THE END OF JUNE Amounts in unit as on Budget end June 01 Agriculture and Rural Development General Administration Agriculture development and 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 Access 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