Congo Boosts 2025 Budget Amid Tax Revenue Hike

The Democratic Republic of Congo has announced a 25.8% increase in its 2025 budget, largely due to expected rises in tax revenue and economic growth. The budget aims to improve basic services and resources, despite past overestimations of growth, and includes new royalties from mining deals.

The Democratic Republic of Congo is moving into 2025 with a significant budget increase of 25.8%, fueled by a projected rise in tax revenue and economic expansion. Senate documents indicate that spending will escalate to 51.55 trillion Congolese francs from the previous year's 40.99 trillion francs.

Senate President Jean-Michel Sama Lukonde emphasized on Sunday that the budget aligns with government objectives to amplify tax collection and revenue from domestic sources. However, he noted that, despite positive macroeconomic signs, access to basic services remains deficient for many Congolese citizens.

The finalized finance bill, pending presidential approval, anticipates economic growth at 5.7% and inflation at 10.3%, contrasting with the IMF's projections of 4.7% growth and 17.8% inflation for 2024. The increase in tax revenue, driven by the mining sector, broader tax base, and anti-fraud measures, will enhance the budget.

(With inputs from agencies.)