• Togo cut projected 2025 budget revenue by 1% to CFA1,472 billion while raising spending by 2.3% to CFA1,717.1 billion.

• The revised budget shows a fiscal deficit of CFA245.1 billion, fully financed from existing treasury balances without new borrowing.

• Parliament must still approve the revised budget, while the government prepares a sharply higher, socially oriented 2026 budget.

In Togo, the government adopted on Wednesday, December 17, a draft revised finance bill for the 2025 fiscal year during a cabinet meeting to recalibrate its budget framework.

The Council of Ministers said the decision followed persistent international and domestic uncertainties that required updated budget assumptions. The cabinet stated that the revision aimed to “guarantee sincerity and transparency in the management of public finances,” according to the official communiqué.

Falling revenues, rising expenditure

The government revised budget revenues downward. The official statement said, “budget revenues are revised to CFA1,472 billion, down by 1%.”

At the same time, the government increased spending. Total expenditures rose to “CFA1,717.1 billion, an increase of 2.3%” compared with the initial finance law.

A budget deficit of 245 billion

The revised budget balances at CFA2,436 billion. It shows “a budget deficit of CFA245.1 billion, fully financed by the positive treasury balance.” This approach indicates that the executive plans to rely on available cash resources rather than contract new loans or issue additional market debt to cover the gap.

Economic observers say the revision, which still depends on approval by both chambers of parliament—the National Assembly and the Senate—reflects short-term fiscal discipline and the state’s capacity to absorb shocks without immediate borrowing. However, analysts also warn of constraints. Treasury resources remain finite, and repeated deficits could deplete this buffer. Over the medium term, the state will need to raise revenue, cut spending, or return to debt financing.

Looking ahead, Togo plans a 2026 budget setting both revenues and expenditures at CFA2,751 billion, representing an increase of nearly 15% from 2025. The draft finance law, which emphasizes social sectors such as education, health, and social protection while supporting economic transformation, has passed its first reading in the National Assembly and now awaits a second reading in the Senate.

Ayi Renaud Dossavi