Togolese authorities optimistic about 2021 budget despite shocks induced by Covid-19

Economic governance

Tuesday, 27 October 2020 13:11

Togolese authorities optimistic about 2021 budget despite shocks induced by Covid-19

(Togo First) - Despite the major pressure the pandemic has put on the country’s economy and finances, Lomé’s provisional budget for 2021 slightly differs from this year’s.

In detail, the country expects budget revenues to stand at CFA842.9 billion next year, down 2.7% compared to 2020. In 2022 and 2023, the authorities expect a better mobilization of internal and external revenues.

To meet its forecasts, Lomé relies on internal revenues (tax and non-tax), external loans, and grants.

Internal mobilization

In terms of tax earnings, collection of duties and taxes which was bolstered by ongoing reforms (which still need to be consolidated) should generate CFA644.6 billion next year. Out of this sum, internal taxation should generate CFA331.6 billion and port taxation CFA313 billion. Together, they would thus record an annual growth of 9.5%.

Regarding non-tax revenues, they should contribute CFA62.3 billion to the national budget in 2021, and dip in the following two years.

External mobilization

According to initial forecasts, next year, Togo will consolidate is budget targets, via grants and budgetary supports totaling CFA131 billion. In detail, grant programs should amount to CFA16.5 billion and grant projects to CFA119.5 billion.

Regarding treasury resources (bonds, especially), Lomé expects they will move from CFA657.2 billion this year to CFA674.5 billion in 2021.

In all, the budget for next year, expenditures and earnings combined, amounts to CFA1,517.4 billion and it should increase by 2023.

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.