Oil revenues fall from 30 million to 16 million USD per month
In addition to a reduction in the price of a liter of fuel at the pump in 2015, the government Government of the Democratic Republic of Congo (DRC) also announced budgetary restrictions.
Four months after its promulgation by the Head of State, the 2016 Finance Law was once again at the center of debates in the National Assembly. The Prime Minister was trying to obtain approval from the budgetary authority for the downward revision of 22%, or the equivalent of two billion US dollars, of the overall budget envelope for the financial year. 2016 in progress. Augustin Matata Ponyo justified this regression of the budgetary envelope by the fall in oil prices. He maintained that “this situation will impact State revenues and expenditures during the current budgetary year”. According to the Prime Minister, faced with the situation dictated essentially by exogenous causes, the DRC had to do nothing other than return to the budgetary authority that is Parliament to seek its agreement with a view to rectifying the situation in the direction of adapt things to national economic reality. In his presentation, Augustin Matata Ponyo made it known that “since the last quarter of 2015, the major modifications of the macroeconomic framework which served as a basis for the development of the Finance Law initial of the 2016 financial year, were already perceptible.” The fundamental reason is the evolution of the international economic situation which affects the metals market and Especially oil, thus resulting in the fall in the prices of the main metals exported by the DRC, notably cobalt, copper and oil. According to Augustin Matata Ponyo, the slowdown in the activity of the national economy, which is likely to continue, had a negative impact on public finances in 2015, as well as the general budgetary framework established by the Finance Law. In addition to internal revenues which will undoubtedly decline, the amount of 653.4 billion FC initially planned for borrowing.
CONSEQUENCES IN AFRICA OF THE FALL IN OIL PRICE
contract on politics. The National Assembly to the press the Minister of the International Financial Market had examined in detail the dif- nomies of the time, Modest was revised downwards, i.e. 256.7 ferent budgetary allocations Bahati Lukwebo. It was ultimately billions of FC. Consequence to see if it was necessary to maintain the of a meeting of the Troika stratified- of the situation: the revenues and the caps for the remuneration of the gic chaired on January 15, 2015 expenditure of the State will be equal- political staff of the State, and by the then Prime Minister ment revised downwards. They are what can be reduced in terms Augustin Matata Ponyo, at the Hotel present in balance at 6,610.9 of luxury expenditure with a view to aid- from the Government in Kinshasa. billion FC against 8,476.4 billion for the State to achieve its objectives. During this second receive – billion FC initially nation of the 2015 financial year enshrined in the Finance Law Lower at the pump to monitor the economic situation promulgated by the Head of State. From January 2015, the economic and financial indicators, the Minister Be a regression rate of already pushed the government of the Economy had submitted to 22%. to anticipate a drop in prices the approval of the Troika stra- Most MPs having fuel at the pump. « The technical scenarios for readjustment- the prices of petroleum products in the general budget opened at the end of the ex- of the State fell by 30 thousand, at in view of the evolution of the Prime Minister’s position, we raised USD to 16 million USD in an international context. While insisting that security and elections not be part of the oil prices on the market following the fall of the international public institutions or services following the fall of the strategic Troika, acceding to the proposal made. The prices per liter with caution taking into account the reduction of fuel at the pump will be economic factors at the basis of the State’s lifestyle. Because, not be revised downwards in one of the price declines observed during the week,” was then announced at a global level.
