(Ecofin Agency) - Burkina Faso has updated its 2023 budget and under the new budget, revenues are forecast at $3.8 billion. The government attributes the amendment to the evolving security situation and significant unforeseen additional needs that were not included in the original budget.

The government of Burkina Faso adopted on August 31 a revised Finance Act that showcases a 2.13% increase in revenues for the 2023 fiscal year. This was revealed in a statement from the Ministry of Economy and Finance.

According to the statement, budget revenues are expected to stand at $3.8 billion, against $3.6 billion in the previous budget. And expenditures are now forecast at $5.4 billion, up from $5.3 billion before. Financing needs are the same as in the previous version of the Finance Act–$995 million.

The changes, according to the government, are attributed to the evolving security landscape, which gave rise to new needs not anticipated in the original budget. “The same applies at the social level, with the state's efforts to support populations affected by the humanitarian crisis,” added the authorities.

A mid-term review of the initial budget was also presented by the government. It showcased that budgetary revenues and committed expenses both achieved recovery and execution rates of over 50%, resulting in a budget deficit of around $833 million.

The government highlighted that the first half of the 2023 budget was marked by "support for the Defense and Security Forces and addressing the additional financing needs expressed by certain ministries and institutions."

Though Burkina Faso currently grapples with a security crisis, primarily driven by terrorist armed groups in the north, the Burkinabé economy remains resilient against internal and external shocks. Based on data from the IMF, the country’s real GDP growth is expected to reach 4.9% this year, up from 2.5% in 2022.

Charlène N’dimon (intern)