WASHINGTON, USA June 16, 2023/African Media Agency(AMA)/–The World Bank has approved $150 million in financing from the International Development Association (IDA)* to help Benin increase the effectiveness of mobilization national resources and public expenditure.
The Program for Economic Governance for Service Delivery is Performance Driven (PforR). It will support actions aimed at efficiency in the mobilization of national resources in order to allow the State to have more means to finance public services and respond to shocks. The program targets more inclusive access to electronic declaration and increased use of performance-based management in customs administration. It also aims for more efficiency in the management of expenditure and public contracts and supports the establishment of a fiscal space conducive to citizen control.
« Benin has made significant progress in improving budget management over the past decade, but further efforts are needed to increase domestic resource mobilization and public spending efficiency “, underline Atou Seck, World Bank Country Manager for Benin. « This financing will make it possible to scale up the results of the reforms undertaken to improve tax management and domestic revenue, but also to modernize the country’s statistical system.”
Benin still has room for improvement relative to its regional peers in mobilizing domestic resources, and its tax base remains narrow. In 2022, Benin’s tax revenue was estimated at 11.5% of gross domestic product (GDP), less than the West African Economic and Monetary Union (UEMOA) average (12.9%). Further efforts are needed to achieve the WAEMU target of 20% of GDP.
This performance-based program aligns with the World Bank’s Partnership Framework with Benin. It consolidates the achievements of economic governance reforms and projects supported in recent years by the World Bank in Benin.
* The International Development Association (IDA) is the World Bank institution that helps the world‘s poorest countries. Founded in 1960, it provides grants and low-interest or interest-free loans for projects and programs that stimulate economic growth, reduce poverty and improve the lives of those most in need. IDA is a leading donor to the world‘s 76 poorest countries, 39 of which are in Africa. IDA resources help bring about positive change in the lives of 1.6 billion people in eligible countries. Since its inception, IDA has supported activities in 113 countries. The annual volume of commitments is steadily increasing and has averaged $21 billion over the past three years, with around 61% of this amount going to Africa.
Distributed by African Media Agency (AMA) for World Bank.
Source : African Media Agency (AMA)