28-05-2025
DRC faces rising military costs, tax shortfall in revised 'combat budget'
The Democratic Republic of Congo (DRC) is grappling with soaring military costs and declining tax revenues due to an offensive by Rwandan-backed rebels, who now occupy much of the country's eastern borderlands, a revised wartime budget under consideration by lawmakers showed.
The International Monetary Fund (IMF) said this month that the fighting was straining public finances, citing the closure of revenue collection offices in areas controlled by the M23 rebels and elevated security spending linked to the conflict.
Initially expected in mid-March, President Felix Tshisekedi's cabinet approved the budget bill on Friday. It now goes to parliament for debate and voting.
It includes slightly decreased spending of $17.2bn (R307.84bn), according to the minutes of the cabinet meeting, and reflects a drop in tax revenue to 12.5% of GDP from 15.1% expected under the original budget approved in December.
The finance ministry announced in March it was doubling salaries for soldiers and police in an apparent bid to boost morale. That move is expected to cost $500m (R8.95bn) this year, a military official and a government source told Reuters.
