The deficit of the revised State General Budget for the year 2023-2024 amounts to 426.3 billion BIF compared to the initial budget of 685.1 billion BIF. This represents a decrease from 6.1% to 3.8%. These changes result from modifications made to the 2023-2023 finance law through the bill fixing the revised General Budget of the Republic of Burundi for the remaining 6 months of the current fiscal year 2023-2024, unanimously adopted by the National Assembly during the plenary session on Friday, December 22, 2023.

The resources of the general state budget increase from 3,238.07 billion BIF to 3,371.6 billion BIF, an increase of 4.1%. As for expenditures, they amount to 3,780.8 billion BIF compared to the initial budget of 3,923.19 billion BIF, representing a decrease of 3.6%.

This revision is based on the flexibility principle of the law on public finances in its Article 22, allowing for the enactment of a rectifying finance law in the event of a disturbance in the budgetary balance defined by the initial finance law.

Thus, this revised bill introduces the cancellation of activities for the remaining 6 months of the fiscal year 2023-2024, planned for the operation of OBUHA, ARB, and FONIC, except for salaries. Funds allocated to uncommitted construction, rehabilitation, and equipment activities are canceled, as well as activities related to public orders paid in foreign currency, aiming to reduce the demand for foreign currency. This includes the acquisition of vehicles, purchase of equipment, and contributions to regional and international organizations.

Modifications also include a reduction in taxes on sugar to make it more available and accessible. The telephone fee also decreases from $0.16 to $0.10 USD. Regarding champagne, their tax is increased as they are considered luxury goods. There is also the introduction of a flat tax on imported business and pleasure vehicles with a large engine capacity of over 3500 CC.

In response to concerns from the People’s representatives about the cancellation of funds allocated to ARB while, during this rainy period, urgently needed road infrastructure needs rehabilitation, Finance Minister Mr. Audace Niyonzima stated that ARB, OBUHA, and FONIC will continue to operate using the unused funds in their bank accounts, which should be sufficient as ARB already has 30 billion BIF, OBUHA has 40 billion BIF, and FONIC has 16 billion BIF.

The Mps praised the efforts of the Burundian Government for the economic recovery, as the economic growth, which was 1.8% in 2022, is now estimated at 3.0% in 2023.