Burundi’s Finance Minister Audace Niyonzima on Friday called on the Burundian Revenue Office (OBR) to intensify efforts to reverse a revenue shortfall of 110 billion Burundian francs (BIF) over the last four months, warning of significant consequences for the national budget if the situation persists.
Meeting with OBR officials, Niyonzima emphasized the urgency of addressing the deficit, which he attributed to multiple factors, including fuel shortages, foreign currency scarcity, and climate change. However, he also pointed to systemic issues like fraud in customs and internal taxation, as well as non-compliance by traders who fail to issue standardized invoices required for value-added tax (VAT) collection.
“The VAT is our main source of revenue, and its loss significantly impacts the budget,” Niyonzima said, urging OBR staff to improve monitoring of taxpayers and address fraudulent practices.
Revenue Shortfall Poses Budgetary Challenges
Burundi, which achieved its revenue targets last year, is now grappling with the consequences of the deficit. The shortfall risks derailing the government’s 2024 fiscal plans, potentially limiting its ability to fund critical programs and services.
Niyonzima warned that unless corrective measures are taken, the deficit could have a “serious impact” on the government’s ability to implement its annual budget.
Infrastructure Delays Compound Challenges
The meeting also highlighted logistical issues within the OBR, including inadequate workspaces. Niyonzima, along with members of OBR’s board of directors, visited the site of the agency’s new headquarters under construction in the Kigobe district of Bujumbura.
The project, initially scheduled for completion in two months, is facing delays of up to two years due to difficulties in accessing foreign currency needed to import construction materials.
Niyonzima said the government would work with the Bank of the Republic of Burundi (BRB) to secure resources to accelerate the project. “This building is crucial for ensuring the efficiency of our revenue administration,” he said.
Call for Coordinated Efforts
In his remarks, Niyonzima urged OBR staff to redouble their efforts. He called for better coordination. He also emphasized increased accountability and stricter enforcement of tax laws.
The government, he said, is committed to addressing both structural challenges and economic pressures, including fuel shortages and currency constraints.
With the fiscal year underway, OBR faces mounting pressure to deliver on its targets to safeguard the country’s financial stability and ensure the execution of government programs.