(Ecofin Agency) - In Burkina Faso, the government wants to change the current process of ratifying financing agreements. According to the authorities, the process, which requires parliamentary approval, slows down the entry into force of the deals.

In a statement issued two days ago, the government said it will propose a bill to the National Assembly to ratify financing agreements by ordinance. “Article 107 of the Constitution allows the Assembly to authorize the government to ratify financing agreements by ordinance within the required timeframe,” the statement read.

The reform is expected to start from January 1, 2022. Ratifying financing agreements by ordinance will accelerate the release of funds for development projects, authorities said. 

As for the management of the fund, the government said it was satisfied with "the management of public expenditure and the preservation of the main budgetary and financial balances" during the first half of 2021. As of June 30, revenue mobilization stood at CFA1,069.94 billion ($1.9 billion), or 49.04% of the annual forecast of CFA2,131.98 billion ($3.8 billion). This is 10% more than that in 2020. Between 2020 and 2021, revenue mobilization increased by CFA173.69 billion ($311 million).

Compared to last year, public spending in the first half of 2021 increased by almost 6% to reach 50.40% of the annual initial target. Public spending as of June 30, 2021 was CFA1,346.99 billion ($2.4 billion) against an annual target of CFA2,672.78 billion ($4.7 billion).

The covid-19 pandemic and its consequences have strongly impacted the economy of Burkina Faso. However, the African Development Bank (AfDB) estimates that if the epidemic is brought under control in the second half of 2021, the country’s GDP could increase by 5.1% in 2021 and 5.2% in 2022.

Jean-Marc Gogbeu (intern)