As per the Burundi budget 2012, the government will aim to increase its expenses to 1.2 trillion francs or 888.1 billion dollars. This will be an increase of 18% from the allocation for 2011 fiscal. Majority of the budgetary allotment for 2012 will be spent in critical sectors such as agriculture, infrastructure and energy.
Burundi Budget 2012 Estimates:
As per estimates, Burundi s economy will grow by 4.8 percent in 2012. The growth for 2011 fiscal has been pegged at 4.2 percent. The additional growth will result from the improved expenditure in infrastructure, energy and agriculture sectors.
The major economic components of Burundi are its tea and coffee and it is also dependent on external aid for economic sustenance. In 2012 Burundi s revenues from taxes are supposed to go up to 543.5 billion francs.
The same figure for the 2011 fiscal has been estimated at 437.8 billion francs. The government has increased its efforts to deal with financial evasion and corruption and this is expected to generate the additional revenues for the present fiscal.
The government expects to receive 48 percent of its state expenditure from its global donors.
But this figure might not be achieved due to the present financial condition around the world.
The national government of this Central African country hopes that it will receive 499.4 billion francs in 2012.
In 2011 it was provided grants worth 469.1 billion francs.
The government expects that it will see a budget deficit of 115.3 billion francs in 2012 fiscal, compared to 99.2 billion francs for 2011 fiscal.
Burundi Economy Present Condition:
In 2011 Burundi received total foreign direct investment worth 104 million dollars, which was an increase of 4 percent from the previous fiscal. According to the information provided by Burundi s investment board its reformed investment processes helped it to get this additional amount.
The General Manager of the Burundi Investment Agency (API), Liberat Mfumukeko, has stated that the new investment law has reduced the number of pre-business processes to 2 from 9. He also stated that previously a period of 32 days was necessary to start a company but now only 2 days are sufficient.
But the aggregate investments for 2011 fiscal in Burundi were lesser than that of 2010. The total investment, including international and domestic players, totaled $169.5 million or 229 billion francs in 2011, compared to 261 billion francs for 2010 fiscal.
According to the 2012 Doing Business report of the World Bank, Burundi has come up to the 169th position from 181 in the 2011 report. The report covers 183 countries in total and examines how ideal the business conditions in these countries are.
The Institute of Economic Studies and Statistics of Burundi has stated that inflation has reached the 16.4 percent mark in 2011. According to Pierre Nkurunziza, the President of Burundi, this African country s major economic advantages are its ability to draw increasing amounts of foreign direct investment and host international conferences. He feels that these are the major proofs that Burundi is benefiting well from the regional integration procedures.