Togo Counts on Tax Income, Loans, and Grands to Primarily Fund 2025 Budget

Economic governance

Wednesday, 04 December 2024 12:49

Togo Counts on Tax Income, Loans, and Grands to Primarily Fund 2025 Budget

(Togo First) - The Togolese government has projected a budget of CFA2,394 billion for the fiscal year 2025. This budget will cover economic and social development projects and primarily leverage tax revenues and loans. The Assembly has yet to validate the budget.

1,200 billion in tax revenues

Lomé expects CFA1,200 in tax revenues next year–about 50.2% of the total budget. The government forecasts non-tax revenues at CFA74.3 billion (3.1%). Program and project grants are expected at CFA12.9 billion (0.5%) and CFA188.3 billion (7.9%), respectively.

Substantial Debt Accumulation

Borrowing will also play a significant role, with cash resources estimated at CFA910.8 billion, around 38.1% of the total budget. This includes CFA340.7 billion from public securities (14.2%) and nearly CFA150 billion from project borrowings (6.3%). There are also CFA420.5 billion from other borrowings (17.6%), although details on these are not yet available.

Assets of Designated Treasury Accounts

Revenue from special Treasury accounts, mainly from earmarked accounts, is expected to be CFA7.8 billion, about 0.3% of the total budget.

The proposed budget for 2025 is a 9.9% increase from the CFA2,179 billion allocated in the 2024 Finance Act, with nearly half of the spending focused on social programs.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.