The government of the Democratic Republic of Congo has presented on May 16, a draft law for its state budget which cuts expenditures by about 1,865.5 billion Congolese francs (€1.73 billion) due the fall in prices of commodities.

“Expenditures projected in the 2016 Supplementary budget act reach 6,610.9 billion Congolese francs against 8,476.4 billion Congolese francs in the initial budget, thus down 22%,” Congo’s Prime Minister, Matata Ponyo, told deputies at a plenary meeting.

More than 50% of DR Congo’s budget revenues come from commodities exports, mainly oil, copper and cobalt. Since the beginning of the year, prices of these commodities have slumped at the global scale.

“This solution is necessary if we want to avoid reaching hyperinflation,” said Mr Ponyo.

DRC has registered in the 90s an unprecedented hyperinflation, with a peak of 9,000% in 1994.

In April 2016, the government scaled down its growth forecast for 2016 to 6.6%, against 9% initially projected in the initial budget act.