On December 27, 2016, Togo National Assembly had voted the National budget for 2017 fiscal year in accordance with the organic law N°2014-013 of June 27, 2014 relative to finance law. Our experts provide a careful analysis of the budget and offer you summaries:
ANCE-Togo experts had proceeded to the analysis of National Budget for 2017 fiscal year to enable citizens to better understand the forecast in terms of revenues and expenditures and comprehensive note on public debt.
In the first point relative to revenues, the contribution analysis of national and large companies provide unsuccessful forecast of these companies in terms of fiscal and non fiscal revenues due to their low contribution to national budget. This is the case of the following companies:
Port Autonome de Lomé (PAL) whose contributions in divident did not grow despite big investments on 3rd wharf and Lomé-Container-Terminal. A forecast of national divident amount 1.4 billions of FCFA but unfortunately their contribution amount only 1 billion of FCFA;
Compagnie Energie Electrique du Togo (CEET), since 2016 has showed cash deficit amounting 42 billions, cannot bring any contribution, because its deficit has increased due to debts incurred by public companies and para public enterprises among which local collectivities, health centers and mainly Global Contour International;
Groupe Togo Telecom which contribution amount only 7 billion FCFA instead of 12 billion FCFA forecasted even though this institution’s telephone fees, wireless as well as cellular and internet usage are very high.
Union Togolaise de Banque (UTB), contributed only 500 million instead of 2 billion deposited in 2016.
Société Aéroportuaire de Lomé Togo (SALT) argues that due to Lomé new Airport construction in terms of expenditure, contributed less than 350 million forecasted.
Société Nationale des Phosphates du Togo (SNPT, does not bring any contribution since 2014, despite achievements and asset declarations undertaken by this company’s managers. For a forecast of cumulative divident of 2014, 2015, 2016 and 2017 amounting 4 billion FCFA, SNPT contributed only 1 billion FCFA.
In the second point relative to Expenditures, the analysis reflects large dicrease in national education, health, agriculture and justice expenditures. The additional found for health sector unfortunatly dicreased from 1.5 billion to 1.2 billion; justice sector from 5.1 billion to 4.2 billion despite the real need to computarize judicial networks and the rehabilitation of prison infrastructure. Togo contribution to finance PURISE project for infrastructure rehabilitation and Electrique services dicrease from 280 million to 140 million, the Project to Support the Development of Agriculture (PADAT) dicreased from 3.3 billion to 1 billion.
Moreover, many projects were cancelled due to debts unsustainability whereas other project which were terminated but were not renewed because lacking Togo financial contribution. It is the same for BID3 project for the construction of school facilities, project to build Adjarala dam, development project of 1000 ha perimeters of agro-sylvo pastoral and fishing in Togo. PURISE project for infrastructures’ rehabilitation and Electrique services financed by World Bank etc. The growth rate dicreased from 5.9% to 5.3% in 2015 and 5% in 2016 and in 2017 the forecast growth rate is 5%.
The third part is relative to public spendings. According to 2016 economical, financial and social report of the Ministry of Economic and finances, the external and domestic government debts by end September 2016 amounted respectively 690.8 billion and 1191.1 billion for a total of 1881.9 billion FCFA. The government debt stock rose from 1036 billion in 2014 to 1183.9 billion by June 2015. The government debt amortization rose from 194 billion to 378.92 billion by end 2015 to 2017, an exponential increase of 75.4% of GDP whereas WAEMU community norm is 70%.
ANCE-Togo Executive Director Mr. EBEH Fabrice highly appreciates Togo government for the reforms undertaken by merging custom authority and tax service into Togolese Revenue Authority (TRA), the adoption of transparent management model in this institution which includes the computerization of the whole system: payment mode, hiring of Canadian expert as General Director, staff capacity building, laying off doubtful employees etc. ANCE-Togo notices that since the creation of Togolese Revenue Authority, their revenues increase from year to year. Mr. EBEH Fabrice welcomes also ongoing reforms in the Information and Communication Technology sector with the creation of Infrastructure Company and Services Corporation. He recommends the replication of Togolese Revenue Authority transparent management model in all government companies.