BURUNDI’S TAX revenues rose 8 per cent last year, exceeding the government’s target, the revenue board said on Wednesday.
The semi-autonomous revenue authority (OBR) said it had collected 637.4 billion francs ($382.64 million) in tax, beating the govern-ment’s target of 596.2 billion francs and the 590.6 billion francs collected a year before. It did not give a reason for the increase.
Government officials have in the past said tax revenues were boosted during the third and fourth quarters by improved security across the country.Burundi is relying on domestic taxes and revenues from coffee and tea exports after major donors like the European Union and Bel-gium suspended aid over accusations of seri-ous human rights abuses.
The rift with donors was sparked by Presi-dent Pierre Nkurunziza’s decision to run for a third term of office and the subsequent vio-lence and protests.The government said in December it would increase 2017 public spending by 5.3 per cent from last year’s budget.
The budget, estimated at 1.326 trillion francs ($796.49 million), will be 70.7 per cent funded by domestic resources and 29.9 per cent by external resources.Economic analysts predict 2017 will be very hard for Burundians, whose poor purchas-ing power is already weakened by almost two years of political turmoil since President Nku-runziza’s decision to run again in April 2015.
Meanwhile, Burundi will increase public spending by 5.3 per cent this year, according to a budget passed in parliament last week.Last week, the budget passed by parliament showed state spending will increase to 1.326 trillion francs ($796.49 million) in 2017, from 1.260 trillion francs this year.In a speech to parliament, Finance Minister Donatien Ndihokubwayo said the 2017 state budget would be funded “to a level of 70.7 per cent on internal resources and 29.9 per cent on external resources”.
Mr Ndihokubwayo added that austerity measures introduced in 2016 would continue next year with some services or goods such as fuel being subject to a supertax. The IMF projects the economy will shrink 0.5 per cent this year and grow by 2 per cent in 2017.

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