Togo: Amended finance bill to adjust the 2025 budget to economic realities
Facing an uncertain economic climate, the Togolese government adopted a revised 2025 finance bill during its Council of Ministers on Wednesday, December 17. The move aims to “ensure accuracy and transparency” by realigning initial budgetary forecasts with current national and international realities.
The adjustments reveal a strained fiscal situation. Budgetary revenue is revised downward by 1% to 1,472 billion CFA francs, reflecting lower-than-expected tax receipts in a slowing economy.
Conversely, state expenditure rises by 2.3% to 1,717.1 billion CFA francs. This widening gap produces a deficit of 245.1 billion CFA francs.
Notably, the government plans to finance this deficit entirely through its positive treasury balance drawing on existing cash reserves rather than seeking new domestic or international borrowing in the short term.
Observers interpret this as a demonstration of immediate fiscal prudence, avoiding an increase in public debt.
However, this approach has limits: treasury reserves are not inexhaustible. Persistent deficits would erode this buffer, forcing medium-term structural choices whether boosting revenue, controlling spending growth, or ultimately turning to borrowing.
This revision comes as the 2026 budget, currently under adoption, projects a nearly 15% increase in spending to 2,751 billion CFA francs, with a stated social and transformative focus.
The 2025 amended bill thus serves as a cautious technical adjustment to navigate current headwinds ahead of next year’s more expansive budget. Final adoption is subject to parliamentary approval.
Chantal TAWELESSI
