In the Council of Ministers on Thursday in Lomé, the government examined the draft budget law, management 2021, which concerns the budgeting of the commitments of the new government's 2020-2025 roadmap translated into the declaration of general policy. .

The draft budget, financial year 2021, devotes to the social sectors, including social protection, an amount of 445.1 billion CFA francs against 401.7 billion CFA francs in the 2020 budget, an increase of 10.8% . The relative share of these sectors in the draft budget, financial year 2021, is 53.7% of budget appropriations against 52.9% in the 2020 budget.

At the sectoral level, the orientations of the finance law revolve around the following sectors: agriculture, health, education, energy and water, digital economy, security. Regarding agriculture and agro-industry, an amount of 65.7 billion CFA francs is devoted to this sector, ie 8.4% of the amount allocated to ministries and institutions.

With regard to the health sector, the government indicates that measures will be taken to consolidate the national health development plan (PNDS). To improve the health coverage of the territory, it is planned in particular to strengthen the infrastructure and the technical platform of hospitals and regional and prefectural health centers. A credit of 77.9 billion CFA francs, i.e. 10% of the amount allocated to ministries and institutions, is allocated to this sector under the 2021 budget.

In the education sector, the measures will relate, among other things, to the continued construction of classrooms accessible to all, the recruitment and training of educators and the orientation of higher education towards the needs of labor market. To do this, an amount of 195.5 billion CFA francs, or 25.1% of the allocation of ministries and institutions under the 2021 budget, is allocated to this sector.

For the implementation of the actions planned in the energy and water sector, the government has released 65.9 billion CFA francs, or 8.2% of the 2021 budget.

Regarding the digital economy, the government aims to make digital a real lever for the modernization of the economy and society as a whole, in particular the implementation of biometric identification of populations. The budget envelope allocated to this sector in 2021 amounts to 25.5 billion CFA francs, or 3.3% of the 2021 budget.

With regard to Defense and Security, the government, which claims to be strengthening its fight against insecurity and cross-border terrorism, has allocated 82.5 billion CFA francs to the sector, i.e. 10.6% of the 2021 fiscal year budget.

With regard to tax relief and in order to encourage the dynamism of the private sector, the reduction of the tax burden will be continued, in particular with regard to the registration of buildings by maintaining the reduction in registration and registration fees of 5 % to 1.5% and by extending it to the registration of buildings following exchanges which are analyzed for tax purposes as a sale for which payment is in kind. This relief also applies to the exemption from discharge and discharge duties on mortgages. It is proposed to reduce the floor of the single professional tax (TPU) of the declaration system.

The government plans to continue the measure related to the exemption or reduction of the tax burden (customs duties and VAT) on the import of electric, hybrid and new vehicles with a lifespan of 5 years.

The broad masses of the draft finance law, financial year 2021, are as follows: budgetary revenue recorded a drop of 27.1 billion CFA francs to settle at 839.6 billion CFA francs, i.e. a drop of 3.1% compared to the 2020 budget. This drop is mainly driven by program donations, which fell by 78.6%.

In total, the State budget which emerges from the draft finance law, financial year 2021, is projected at 1,521.6 billion CFA francs in expenses and resources against 1,638 billion CFA francs in the 2020 amending finance law, a decrease of 7.1%.

It should also be noted that the government wants to accentuate in 2021 its policy of reducing state expenditure initiated in 2018, with a reduction of 20% (i.e. 11 billion CFA francs), operated on the operating credits of all the ministries and institutions in order to finance part of the projects and reforms contained in the government's roadmap and to meet social needs.

In this context of health crisis born of the coronavirus pandemic, Faure Gnassingbé's government says it is opting for a prudent budgetary strategy. 20 billion FCFA remain mobilized to deal with this situation, we learn.