Togo: 2023 budget forecast at nearly CFA2,000 billion

Public finance

Tuesday, 15 November 2022 14:53

Togo: 2023 budget forecast at nearly CFA2,000 billion

(Togo First) - Togo’s budget for 2023 is projected at CFA1,957.9 billion in spending and resources. This is 4.4% more than the CFA1,875.8 billion of the 2022 rectifying finance law. The new figure is in the draft finance bill that was studied and adopted by the Togolese government last Friday, during its latest council of ministers

In terms of income, the State expects the revenues to stand at CFA1,187.2 billion next year, thus 117 billion more than the figure set in the rectifying finance law.

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Covid-19 and Ukraine-Russia war

Part of the resources that have been increased will be used to introduce new actions to cushion the economic impacts of Covid-19. Another part will serve to maintain measures that make the people more resilient to the impacts of the Ukraine-Russia war.

At the same time, the Togolese government wants to sustain structural reforms, to stabilize the country’s macroeconomic situation.

Social projects get half of the budget income

In the new budget draft, social sectors are to receive CFA623.4 billion, compared to CFA522.2 billion in the 2022 budget. Thus, social projects will get about half of the forecast budget income.

Besides, the authorities are also considering new social measures which will boost “social inclusion and improve the business climate”, such as making insurance premiums paid by employers (to their employees) deductible.

Security and defense

To tackle threats to national security, which keep mounting, Togo plans, under its military programming law, to spend more than 430 billion CFA francs on defense by 2025.

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.