The National Assembly of Bénin has unanimously adopted the revised finance law for the 2026 fiscal year during a plenary session held at the Palais des Gouverneurs in Porto-Novo. The new budget, approved by all present and represented deputies, marks an 8% increase compared to the initial projections, rising from 3,700 billion to over 4,148 billion CFA francs.
Key figures of the revised budget
The revised budget reflects a strategic shift to support newly created or restructured ministries while reinforcing social and productive sectors. Economic growth is projected at 7.5%, maintaining the upward trend observed over the past decade. The overall budget deficit is set at 487 billion CFA francs, equivalent to 3.1% of GDP—a figure the government asserts aligns with regional commitments within UEMOA.
Capital expenditures reach 1,572 billion CFA francs, an 8.5% increase from the initial budget. Ordinary ministry expenses total 1,777 billion CFA francs, while the state’s payroll ceiling remains fixed at 102,740 full-time equivalents.
Social measures take center stage
The revised law prioritizes purchasing power and access to essential services. Key provisions include:
- Free secondary education for girls across public institutions.
- Expansion of electricity and potable water connections to health centers.
- Coverage of emergency medical care without upfront payments.
- Strengthening of local social safety nets and support for vulnerable early childhood.
- 90 billion CFA francs in agricultural subsidies to bolster food security.
- Enhanced protection for street children, with special focus on northern and border regions.
A modernized fiscal framework
The law introduces several structural fiscal reforms, including:
- Taxation of undistributed profits: Companies failing to reinvest profits within three years will face taxation. A reduced rate of 7.5% applies to voluntary compliance before December 31, 2026; afterward, penalties and standard rates apply.
- Digital platforms now subject to withholding tax, covering hosting, e-commerce, and money transfers.
- Taxation of capital gains on the sale of shares in Béninese companies, regardless of the seller’s residence.
- Shortened on-site tax audits from three to two months for businesses with annual turnover under 2 billion CFA francs.
- Full legal recognition of digital tax notices and procedural documents.
Streamlining public accounts
The law streamlines special treasury accounts by:
- Abolishing three special funds: the Fund for Financial Modernization, the Arts and Culture Development Fund, and the Sports Development Fund. Their remaining balances will be transferred to the general budget.
- Renaming the Disaster Prevention Fund to include vulnerability management, funded in 2026 by 56.2% of mobile telephony royalties.
- Incorporating climate adaptation criteria into state financial allocations to local governments.
Institutional oversight and parliamentary debate
The Economic and Social Council (CES), consulted per constitutional requirements, issued a favorable opinion alongside fourteen recommendations. These include:
- Returning the deficit below 3% of GDP by 2027-2029.
- Publishing semiannual public debt sustainability reports.
- Implementing geolocated digital tracking for agricultural subsidies.
- Holding semiannual budget execution reviews with the CES and Audit Court.
Parliamentary debates were brief yet constructive. Both the Bloc républicain and Union progressiste le renouveau limited interventions to fifteen minutes each, endorsing the continuity of the economic trajectory established under President Patrice Talon’s administration. Deputies emphasized the need for rigorous expenditure execution and stringent monitoring of social measures.
The Finance Commission, tasked with reviewing the law, submitted four additional recommendations to the executive: intensified tracking of street children in northern and border zones, clarification of urgent care programs, extension of social school measures to university services, and equitable distribution of national investments.