As part of the response to the Covid-19 pandemic, donations received by member countries of the West African Economic and Monetary Union (UEMOA) increased sharply by 60.4% at the end of 2020 compared to 2019, according to data from the Central Bank of West African States (BCEAO) based in Dakar.
These donations, which mainly come from external support received from technical and financial partners (PTF) amounted to CFAF 2,540 billion against CFAF 1,583.6 billion in 2019, an increase of CFAF 956.4 billion.
As for non-tax revenues, they fell by 10.60% to FCFA 1,401.5 billion during the period under review against FCFA 1,567.8 billion a year earlier.
Total expenditure and net loans, for their part, increased by 20.8%, from 17,670.9 billion FCFA, or 19.9% of GDP in 2019 to 21,352.2 billion FCFA, or 23.5 % of GDP at end-December 2020, driven by current expenditure and capital expenditure.
Current expenditure has indeed recorded an increase of 12.1% to stand at 12,983.5 billion FCFA. The BCEAO links this situation to “the increase in salaries and wages (+ 8.9%), transfers and subsidies (+ 12.9%) as well as interest charges on the debt (+ 23.0%) . According to the issuing body, they also bear the imprint of social assistance measures adopted by Governments, in particular the partial or total coverage of water and electricity bills, food aid as well as cash transfers to vulnerable populations due to the health crisis.
Capital expenditure amounted to CFAF 7,204.3 billion at the end of December 2020, an increase of CFAF 1,818.3 billion (+ 33.8%), in connection with the continuation of disbursements for projects in the field. infrastructure as well as the realization of certain investments within the framework of plans to fight the Covid-19 pandemic, in particular in the health sector. As a percentage of GDP, they stood at 7.9% in 2020 against 6.1% the previous year. “Capital expenditure was financed to the tune of 51.9% from internal resources in 2020 against 58.6% in 2019” reports the BCEAO
The overall deficit, commitment basis, including grants widened by 3,052.3 billion to stand at 5,220.5 billion FCFA at the end of December 2020, or 5.7% of GDP, far beyond the initial forecasts for the year fixed at 2.7% of GDP. It was CFAF 2,168.2 billion or 2.4% of GDP in 2019. On a cash basis, the deficit stood at CFAF 5,224.8 billion, or 5.7% of GDP and was financed, according to the BCEAO, on the regional financial market and with external partners.
