Niger: 2023 budget revised downwards
Niger is facing heavy sanctions imposed by international and regional organisations following the coup d’etat on 26 July. This situation was the main reason for the government’s rectification of the 2023 budget.
The government of Niger has revised its Finance Act for the 2023 budget year, reducing it from the CFAF 3.291.62 billion initially projected to CFAF 1.981 billion, a reduction of almost 40%. This is the conclusion of a press release issued by the Ministry of Finance on Monday 9 October.
«Niger is facing heavy sanctions imposed by international and regional organisations. These sanctions are exposing the country to a significant drop in both external and internal resources. This state of affairs makes it necessary to revise the budget forecasts contained in the initial Finance Act» stated Mahamane Roufai Laouali, Secretary General of the Government, without however specifying where the reductions will be made.
As a reminder, ECOWAS adopted a very firm stance by imposing inhumane sanctions on 30 July 2023, four days after the start of the attempted coup. The conference of heads of state imposed a number of measures that have become customary in response to putsches: suspension from the organisation, freezing of assets and travel bans on leaders, etc. It also took more radical measures, such as the imposition of a travel ban on the leader of the coup. It also took more radical measures than those imposed on Mali in 2022. The closure of borders and suspension of trade relations apply to all transactions, with no exemptions.
These sanctions have led to a sharp rise in food prices. For example, since the sanctions were announced, the price of rice has risen by 21% and that of sorghum by 14%, according to the World Food Programme.
The initial Finance Act, which was based on reforms designed to mobilise resources and broaden the tax base, had allocated 13% of this budget to equipping the defence and security forces. The energy sector took 25% of the budget.
