By Avit Ndayiziga
Despite the 2024-2025 state budget surging to BIF 4,626.0 billion, exceeding last year’s BIF 3,923.1 billion, it shows a budget deficit of BIF 449.6 billion as expenditures hit BIF 5,075.6 billion, outpacing available resources. Economists and activists caution that the budget will satisfy public servants while stifling economic growth.
Every year on July 1st, the government of Burundi starts funding its daily activities through a freshly approved state budget. This year, 2024, the budget approval process followed the familiar routine. However, some unusual twists occurred, resulting in discrepancies.
Typically, the council of ministers, under the leadership of the head of state, crafts the budget, which is then presented to lawmakers by the Minister of Finance. After deliberation with members of Parliament, senators make amendments and approbations. Finally, the president signs or rejects it.
Discrepancy in the state budget
However, this year, unusual twists occurred, resulting in a discrepancy between the budget approved by the parliaments and senators versus the final version promulgated by the president.The above disparity has sparked unanswered questions about who holds the authority to modify the budget that the lawmakers have already approved.
The constitution stipulates that the president can either reject or approve the financial bill but cannot change it.
Article 196 of the Constitution of Burundi stipulates that “If the National Assembly adopts the amendments proposed by the Senate, the President of the National Assembly shall, within forty-eight hours, transmit the final text to the President of the Republic for promulgation.” At the same time, Article 202 clarifies that “the President of the Republic shall promulgate the laws adopted by Parliament within 30 days from the day of their transmission if he does not request a second reading or refer the matter to the Constitutional Court for unconstitutionality.”
Beyond discrepancies, this year’s state budget was voted amidst a crucial moment of severe poverty, exacerbated by an ongoing fuel shortage, inflation, inadequate access to energy, a scarcity of clean and drinkable water, a persistent sugar shortage, potholed roads, and other pressing challenges that continue to burden the people of Burundi coupled with an imminent election.
2024-2025 critical financial year due to imminent election
According to Desire Ndayishimiye, executive director at PARCEM, a civil society organization actively involved in promoting good governance, fighting corruption, human rights protection, and fostering economic development, “this year’s budget comes at a critical time when the country is heading to elections, making it a particular year.” Ndayishimiye commented, “This year’s budget was supposed to address pressing issues including the chronic fuel shortages, inadequate access to clean water, and the electricity crisis impacting both the public and private sectors. Upholding struggling public enterprises to propel the nation towards its long-term goals of becoming an emerging and developed country by 2040 and 2060, respectively.” However, it focuses on consumption over development as state expenditures surpass resources without clear investment plans. He noted.
A budget to suck the blood of impoverished citizens.
On the flip side, Francis Rohero, a former presidential candidate, economist, and political leader of Fraternité des Patriotes-Ineza (FPI) political party, did not beat around the bush or bite the tongue in his criticism. “This budget underscores a troubling pattern within the government, which could be likened to the detrimental practice of sucking the blood of impoverished citizens. Favoring consumption over crucial development initiatives simply displays a lack of a clear vision and low consideration for low-income taxpayers. This adds another layer of worry. With a projected tax increase exceeding BIF 56 billion, this budget will deepen poverty levels compared to the previous year, which left us speechless with inflation on every product on the market. This budget falls short in addressing pressing challenges, painting a bleak picture of a future marred by escalating impoverishment,” lamented Rohero.
Intransparent budgets stifle economic growth.
Gabriel Rufyiri, the president of OLUCOME, an anti-corruption watchdog organization, expresses regret over the persistent lack of inclusivity and transparency in the budget approval process.
“This year, during the budget crafting process, we were consulted and provided our suggestions. Unfortunately, our proposals were not reflected in the final document. Consequently, the International Budget Partnership rates public participation as zero in this regard.” He noted.
In 2023, the International Budget Partnership, which is the world’s leading nonprofit organization promoting more responsible, effective, and equitable management of public money, surveyed Burundi using its Open Budget Survey (OBS), the world’s only independent, comparative, and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information; formal opportunities for the public to participate in the national budget process; and the role of budget oversight institutions, such as legislatures and national audit offices, in the budget process.
The survey covered three main categories: public participation, budget oversight, and transparency. The findings revealed scores of 0/100 for public participation, 26/100 for budget oversight, and 14/100 for transparency.
A budget to appease public servants
As the 2024-2025 state budget swells to BIF 4,626.0 billion, surpassing last year’s BIF 3,923.1 billion, questions arise over the substantial allocations towards wages and the presidential office. Minister of Finance, Budget, and Economic Planning, Audace Niyonzima, stated that this budget is “in line with the 2040 and 2026 vision outlined by the head of state; this budget prioritizes meeting the emerging and developed country vision. Furthermore, the president wanted to settle all outstanding wages owed to public servants, a process initially slated to unfold over six years.”
Francis Rohero was dissatisfied with his responses, noting that the minister seemed more focused on satisfying public servants in anticipation of the upcoming elections rather than prioritizing Burundi’s economic growth.
“Based on the minister’s answers to the lawmakers, the budget is tailored to placate public servants; it is a form of corruption with little emphasis on fostering economic growth. The shift towards election season appears to have sparked propaganda efforts. Regrettably, the country’s economy continues to decline, which underscores the absence of a coherent development strategy.” He clarified.
Compared to the previous budget, there was a significant rise in wage payments from BIF 870,991,179,930 to 1,107,525,966,757, representing an increase of 236,534,786,827. Similarly, funds allocated to the presidential office increased from 52,827,918,813 to 70,064,088,736.
Agathon Gwasa, a parliament member from CNL, a key opposition party, questioned the increase in funds designated for the president, pondering why the president, who claimed to have enough food, unaware of the rising food prices at the market, demanded to increase his allowances.
The minister responded by explaining that the allocated funds are intended to host distinguished guests visiting Burundi for international conferences and other significant gatherings. However, Gwasa argued that the funds should be used to address more pressing issues, such as poverty, hunger, and unemployment. He also called for more transparency and accountability in the use of public funds.
With total resources amounting to 4,626.0 billion, economists have expressed apprehension regarding over 1,722.0 billion expected from donations. They question the government’s contingency plans if these donations do not materialize promptly, as has been the case in the past.
Besides, they also wonder how the government will be able to finance a deficit of BIF 449.6 billion.
Aside from satisfying public servants while stifling economic growth, the 2024-2025 state budget will deeply impoverish the population.
Politicians, activists, and economists are baffled by the government’s apparent disregard for the lessons heeded from the 2023–2024 state budget. This budget resulted in price inflation across all market products, disproportionately affecting low-income earners and tax contributors.