The allocation for the Benin budget 2012 has been reduced to 1.099 trillion CFA francs from 1.016 trillion CFA francs. This represents a reduction of 8 percent. Adidjatou Mathys, the Minister of Finance of Benin has said that the country has lost out on revenue owing to a latest port strike.
Benin Budget 2012 – Road Development:
It is expected that in the upcoming fiscal the Benin government will construct 371 kilometers of roads. The cost of this project is estimated at FCFA 277 billion. In 2011 the government spent almost 198 billion CFA francs to improve and modernize its roads network. This information was provided by Yayi Boni, the President of Benin, during his year end address.
Almost 436 kilometers of road were modernized and this used up almost 137 billion CFA francs from its partners. FCFA 61 billion came from Benin s internal resources. The European Union, the 2011 Benin budget and the Danish International Development Agency (DANIDA) together contributed 13 billion CFA francs for road development in Benin.
This amount was used to fund the support program for transport in the rural sub-sectors. The main aim of this program is to re-establish the feeder roads across Benin.
Benin Economy – The Future:
The Beninese government has stated that it expects the economy to grow by 8 percent in the 2013 fiscal. It is expected that this growth rate will help to bring the poverty levels in this African country to 35 percent.
This will be a significant development, when it happens, since the present average poverty rate in Africa is 50%. The national administration has set up a program, which is supposed to improve the overall economic conditions.
It is expected that the economy will grow by 4.1 percent in 2012 compared to 3.8% in 2011. The Beninese economy has been growing steadily in the last couple of fiscals the rate for 2010 was 2.6 percent and in 2009 the rate was pegged at 2.7%.
Benin has been able to satisfy the criteria laid down by the West-African Economic and Monetary Union (UEMOA) in the previous fiscal. Its inflation rate is decreasing gradually and presently stands at 2.8 percent. Its debts are presently 28% of the GDP.
But its ratio of tax revenues and wage bills presently stands at 47.6 percent whereas the required standard for UEMOA is 35%. The standard for the ratio of equity and investment resources is 17 percent, which is less than the required standard of 20% set by the UEMOA.
Standard & Poor s has recently given a B/B rating to Benin, which reflects a consistent economic future. In 2011 the legislative and presidential elections were held and, according to experts, the present conditions are ideal for carrying out structural changes.
The economy at present, is recuperating from the aftereffects of the 2010 floods and economic slowdown of countries across the world. At present the government s debts are manageable but there could be problems of fiscal slippage with increasing demands for expenditure.
It is expected that in the medium term the government s debts would not go up any further and this creates a stable future that makes up for the relative lack of economic improvement and flexibility of Benin.