(Ecofin Agency) - For FY2024, the government of Benin has announced a state budget of CFA3,199.274 billion (about $5.12 billion), marking a 5.5% increase compared to the CFA3,033.337 billion (about $4.8 billion) of this year.

The official statement, issued on September 26, reports that the government aims to "accelerate the structural transformation of the economy and, simultaneously, achieve a better distribution of the wealth generated by growth." Particularly, the state budget resources for FY2024, amounting to CF2,076 billion, represent a 12.8% increase from the CFA1,840 billion in the initial 2023 Finance Act. This increase primarily results from "tax and non-tax reforms focused on broadening the tax base and fostering consumption dynamics, followed by massive investments in key sectors of the economy that have been ongoing since 2016," the government said.

The budget deficit is also expected to narrow from the forecasted 4.3% of GDP at the end of 2023 to 3.7% in 2024. As a reminder, despite the prevailing security situation in the sub-region and external shocks, the economic activity in Benin has shown resilience. For 2024, the government anticipates a GDP growth rate of 6.5%, compared to the estimated 6.1% for the end of this year. These projections are more optimistic than those of the IMF, which predicts a rate of 5.9% in 2024 and 6% in 2023.