The government of Equatorial Guinea has submitted a comprehensive budget package to the Senate for analysis and review. The package includes the Draft Law on the Liquidation of the State General Budgets for 2025, the Report on Budget Execution as of June 30, 2026, and the Draft Law on the State General Budgets for the 2027 Economic Exercise. This move marks a crucial step in the country's financial planning and transparency.
According to the government, the 2025 budget execution was impacted by a contraction in oil GDP. Despite this, the total revenue reached 1.213.017 billion CFA francs, which is 86% of the forecasted amount. Notably, non-oil revenue saw a significant increase, reaching 283.505 billion CFA francs, or 104% of the projected amount. This represents the highest revenue recorded in the last decade for this sector.
The government's budget execution for 2025 also revealed that total expenditure amounted to 1.250.433 billion CFA francs, representing 89% execution. Social sector spending reached 163.000 billion CFA francs, exceeding the target agreed upon with the International Monetary Fund (IMF) by 9%. This highlights the government's commitment to prioritizing social sectors.
In terms of fiscal sustainability, the 2025 exercise ended with a moderate budget deficit of 0.5% of GDP, equivalent to 37.416 billion CFA francs. The public debt stood at 32.6% of GDP, significantly lower than the 70% limit set by the Economic and Monetary Community of Central Africa (CEMAC). This demonstrates Equatorial Guinea's adherence to its multilateral commitments.
The budget package also provided an update on the execution of the 2026 budget for the first half of the year. As of June 30, total revenue was 507.089 billion CFA francs, while expenditure execution stood at 424.735 billion CFA francs. This resulted in a positive transient balance of 82.354 billion CFA francs, driven by favorable non-oil tax revenue.
The government has guaranteed prioritization of social sectors, with allocations for education and health. For education, 32.734 billion CFA francs have been set aside for public school infrastructure, and 7.000 billion CFA francs for student scholarship programs. In the health sector, transfers to public health centers have increased by 32%, to 20.400 billion CFA francs, in addition to 16.070 billion CFA francs for the National Plan for Operationalization of Health Districts.
The Senate will now begin a formal analysis, technical debate, and evaluation of the legislative initiatives presented by the government. Through its committees, the Senate will ensure a rigorous allocation of state resources, promoting economic balance, institutional transparency, and general citizen welfare. Senators have made recommendations to improve aspects such as economic diversification and the solidity of the banking system.
Key points
- The government of Equatorial Guinea has presented a comprehensive budget package to the Senate, outlining the country's financial situation and economic projections for 2027.
