The Guinean government's 2026 revised budget has increased spending to 67.925 trillion GNF, a 5.83% rise from the initial budget of 64.181 trillion GNF. This increase is primarily driven by higher current expenditures, which have risen to 41.954 trillion GNF from 35.537 trillion GNF. The revised budget was examined by the National Assembly's Economic and Financial Affairs Committee.
Current expenditures have seen a significant increase, largely due to a rise in transfer expenditures, which have jumped to 15.828 trillion GNF from 9.487 trillion GNF. This increase is attributed to the government's decision to maintain fuel prices at 12,000 GNF per liter, resulting in a loss of revenue of 4.577 trillion GNF. Additionally, a provision of 913 billion GNF has been set aside for a hydrocarbon price stabilization mechanism.
The revised budget also reveals that investment spending has declined by 10.13% to 23.562 trillion GNF from 26.218 trillion GNF. The government has justified this decrease by citing the postponement of several projects deemed insufficiently mature until 2027. However, the National Assembly has expressed concern over this decline, citing poor execution of public investments.
According to the National Assembly's report, 29 out of 39 ministries and institutions have a payment rate for investment expenditures of less than 30%. Thirteen ministries, including the Prime Minister's office, have not made any payments. The Assembly has requested the Prime Minister to conduct an in-depth evaluation and take necessary measures to address these issues.
The National Assembly has also highlighted several areas of concern, including the non-payment of funds for school canteens, which has left 30 billion GNF unutilized. The Assembly has urged the Ministries of Finance and Education to release the funds and present a plan for disbursement. Additionally, the Assembly has criticized the low allocation of resources to local authorities.
Only 0.65% of collected resources, amounting to 15.67 billion GNF, have been transferred to the National Agency for Financing Local Authorities. The Assembly has recommended that the government allocate at least 2.3 trillion GNF annually to local authorities. Furthermore, no funds have been allocated for rural road construction, despite a budget allocation of 100 billion GNF.
The National Assembly has also noted a significant overspending on state arrears, with payments reaching 6.228 trillion GNF, exceeding the authorized budget of 5 trillion GNF. The Assembly has recommended accelerating the settlement of domestic debt, which stands at 1.7 trillion GNF. The government must ensure that expenditures are executed within authorized limits.
Key points
- The revised budget has increased spending to 67.925 trillion GNF, driven by higher current expenditures.
- Investment spending has declined by 10.13% due to project postponements.
- The National Assembly has expressed concern over poor execution of public investments and low allocation of resources to local authorities.
