BUJUMBURA (Reuters) – Burundi’s government expects overall spending to rise by about 65% in the upcoming fiscal year backed by an increase in donor funds and higher revenues, according to a draft budget presented by its finance minister on Monday.
Finance Minister Audace Niyonzima said spending was projected to rise to 3.95 trillion Burundi francs ($1.41 billion) in the 2023/24 fiscal year from 2.39 trillion Burundi francs in 2022/23.
Revenues and donations are seen up about 47% to 3.22 trillion Burundi francs in 2023/24 from 2.19 trillion Burundi francs previously. The budget deficit is expected to be 728.9 billion Burundi francs, up from 197.4 billion.
With a population of about 12 million, Burundi’s economy mostly relies on agriculture, in particular tea and coffee.
Its economy is just starting to recover from years of conflict and political upheaval under former leader Pierre Nkurunziza that left key sectors blighted.
It experienced a shortage of hard currency after a 2015 political crisis that led donors to suspend aid, but in 2022 the European Union agreed to resume financial support. The United States has also pledged aid.
($1 = 2,801.3800 Burundi francs)
(Reporting by Clement Manirabarusha; Additional reporting by Anait Miridzhanian; Writing by George Obulutsa and Bhargav Acharya; Editing by Alexander Winning)
