Home ANALYSES ET DOSSIERS Budget Management in the DRC: Between Overruns and Governance Failures

Budget Management in the DRC: Between Overruns and Governance Failures

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DR Congo's Prime Minister Jean-Michel Sama Lukonde Kyenge gestures as he arrives at the Palace of the Nation in Kinshasa, on March 4, 2023. The French President is in Kinshasa on the fourth and last leg of an African tour. (Photo by LUDOVIC MARIN / AFP)

Introduction

Why do budget overruns and opaque public finance management continue to weigh on the economy of the Democratic Republic of Congo (DRC)? How do these practices affect citizens’ trust in their institutions and the state’s credibility internationally? These questions, at the heart of the recent parliamentary inquiry, highlight the role of economic governance in a country where development challenges are immense and every dollar counts for the collective well-being. The recent report from the National Assembly’s economic commission sheds light on troubling budget irregularities under the leadership of former Prime Minister Jean-Michel Sama Lukonde, with massive overruns, emergency disbursements, and a lack of transparency that, according to members of parliament, benefited individuals more than the public. Through a rigorous analysis of this report, we will explore the facts, responsibilities, and political and social repercussions of these governance practices.

Budgetary Context and Governance

The economic commission, led by MP Guy Mafuta Kabongo, conducted an in-depth analysis of the 2023 budget implementation, highlighting massive credit overruns, a lack of clarity on funded projects, and controversial emergency procedures. Among the anomalies reported were budget overruns of 4.8 billion euros and unbudgeted expenditures totaling 1.5 billion euros. These amounts include the repayment of uncertified domestic debt (about 142 million euros) and payments made through emergency procedures totaling nearly 245 million euros. These practices sparked strong reactions in the Assembly, especially since the presidential program “145 Territories,” aimed at reducing inequalities and promoting local development, was only implemented at a rate of 7%, with just 29 million euros spent out of the 281 million allocated.

Economic Governance in the DRC: A Question of Collective Interest or Individual Priorities?

Critics of the outgoing government point to a discrepancy between the goals of poverty alleviation and the actual management of public finances. Vital Kamerhe, President of the National Assembly, publicly lamented that the government had prioritized debt repayments to benefit certain individuals rather than the general interest. In a context where 60% of the population lives below the poverty line, these budgetary choices become particularly sensitive. Some analysts argue that this management reflects a lack of political will to allocate public funds to national priorities, favoring influential networks instead. “This type of budget management, focused more on individual interests, is symptomatic of a governance that lacks transparency and commitment to the common good,” notes Professor Jacques Mputu, an expert in African governance.

International Comparisons: Lessons for the DRC

The experiences of countries such as Rwanda and Botswana, which managed to transform their governance practices to attract more international financing, could serve as an inspiration for the DRC. In Rwanda, for example, strict budget transparency mechanisms have strengthened investor confidence and international institution partnerships, stimulating the local economy. This comparison illustrates the importance of prioritizing transparency and budgetary efficiency to initiate sustainable growth in the DRC.

Challenges of Transparency and Fiscal Orthodoxy

The parliamentary report also criticizes the systematic recourse to emergency procedures, which, according to the report’s authors, facilitates fund embezzlement. “The irregularly executed expenses, in violation of procedures set out by law, have become recurrent,” said Guy Mafuta Kabongo, president of the commission. Moreover, the lack of traceability for capital expenditures raises questions about institutional transparency and the efficiency of project management. Regional economists note that these budgetary practices make it difficult to verify spending and weaken the trust of international donors, who are essential for supporting the DRC’s development. These criticisms underscore the need for budget governance that adheres to fiscal discipline.

Impact on International Relations and Investments

The issue of budget transparency in the DRC affects not only its citizens but also the country’s credibility in the eyes of the international community. Institutions such as the IMF and the World Bank are closely monitoring the situation, and financial irregularities could hinder the vital funding needed for the country’s development. Rwanda, which has established a robust transparency framework, demonstrates how clear policies can attract investors, highlighting the crucial role of transparency in the DRC within a globalized context.

Political and Social Implications for the Congolese Population

Government budget decisions have a direct impact on citizens, and in the DRC, the irregularities in implementing the 2023 budget raise serious concerns about the state’s ability to meet basic needs. The “145 Territories” program, intended to bring improvements in sectors such as health, education, and infrastructure, was only 7% implemented—just a fraction of the identified needs. For many Congolese, this low budget execution is seen as a failure to fulfill promises to improve living conditions. Testimonies from citizens in impoverished provinces express growing frustration and a sense of abandonment in the face of deteriorating infrastructure, which widens the gap between government promises and public expectations. “Without transparent management focused on social priorities, the impact of development policies will remain insignificant,” explains Dr. Marie Masika, a political science researcher.

Reactions from Civil Society and NGOs

Civil society organizations in the DRC, such as the local section of Transparency International, have criticized the lack of transparency in budget management. These organizations are calling for governance reforms to ensure responsible allocation of funds. “The current situation clearly shows that budget reforms are essential to address the real needs of the Congolese population,” says Gabriel Lukusa, a spokesperson for a local NGO. These voices reflect an increasing demand from civil society for more transparency and accountability in public institutions.

Government Response and Reform Prospects

In response to mounting criticism, government officials have attempted to justify budget overruns as a result of urgent needs and economic constraints. However, these explanations have not convinced the parliamentary commission, which insists on the need for budgetary reform in the DRC. Several experts advocate strengthening internal financial control mechanisms and creating independent bodies to ensure transparency in public spending. “Internal control institutions must be strengthened to prevent financial abuses. Strict measures must be imposed to ensure that public money is used more responsibly and equitably,” advises Tshimanga Kabeya, a public finance analyst.

Future Prospects and Potential Scenarios

The DRC stands at a crucial crossroads: it can either commit to a rigorous budget reform that establishes more transparent governance or continue along a path marked by opacity and irregularities. Should reforms be implemented, the country could become an attractive hub for foreign investors, increasing its chances of economic development. Conversely, if current practices persist, the country may experience further deterioration in its budgetary and social conditions, exacerbating inequalities and deepening citizens’ distrust of their institutions.

Conclusion and Reflection

The report from the National Assembly’s economic commission serves as a call for improved public finance governance in the DRC. The anomalies identified highlight deep-seated challenges that go beyond budget administration; they underscore the need for financial governance that serves the public interest. In a context where every public investment can influence social and economic development, transparency and fiscal orthodoxy are essential to restoring public trust in leadership. Finally, this issue raises a crucial question: can the DRC, in the future, overcome its budgetary challenges to channel its resources toward inclusive and equitable development?

© 2024 – Odon Bulamba / Africa Daily Report

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