Congo's Economic Strain amidst Rebel Conflict
Congo faces increased military costs and decreased tax revenue due to the Rwandan-backed M23 rebels' offensive. The issue has prompted a revised budget reflecting decreased spending and increased army salaries, incurring financial strain. Discussions are ongoing as the budget awaits parliamentary debate and approval.
The Democratic Republic of Congo is wrestling with escalating military expenses and plummeting tax revenues due to an offensive mounted by Rwandan-supported M23 rebels, as revealed in a revised wartime budget presented to lawmakers.
The International Monetary Fund highlighted the strain on Congo's public finances, attributing it to the closure of revenue offices in rebel-occupied areas and increased security spending. President Felix Tshisekedi's cabinet has approved the revised budget, which is now set for parliamentary discussions and voting.
The proposed budget includes a slight reduction in expenditures to $17.2 billion and reflects a drop in tax revenue to 12.5% of GDP. Despite doubled salaries aimed at boosting military morale, funding shortages persist in vital supplies. The conflict has brought to light systemic issues within Congo's military and economic stability.
(With inputs from agencies.)
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