(Ecofin Agency) - The consolidated tax revenues of the member states of the West African Economic and Monetary Union (WAEMU) reached XOF6,379.5 billion ($10.6 billion) in the first six months of 2019, according to the Central Bank’s monetary policy report published in September.

This performance represents an improvement by 14.5%, compared to the same period last year, and reflects the good results in the collection of customs duties and taxes and income taxes in most countries.

Despite a 9.7% decline in partner grants compared to the first half of 2018, the overall budget deficit of WAEMU countries fell by 18% in the first half of 2019. This means that they have managed at best to mobilize internal resources to finance themselves. However, there is concern about how this money has been spent.

Current operating expenses absorbed a large part of the money with an 11% increase in staff expenses to XOF2,309.1 billion, 11.7% increase in transfers and subsidies to XOF1,260.3 billion and about 20.8% increase in debt service. Meanwhile, capital expenditure increased by 7.9%.

The increase in expenditure on the repayment of interest on government borrowing can also be a cause for concern, as governments continue to make maximum use of the sub-regional capital (debt) market. In the first half of 2019, the total amount of gross issues on the regional public debt market amounted to XOF2,300.2 billion, up 78.5% compared to the first half of 2018. Côte d'Ivoire and Senegal, the two leading economies in the sub-region, were the most active in this segment.

Idriss Linge