The Prime Minister of the Government, Charged with Administrative Coordination, Francisco Pascual Obama Asue, appeared on 16th August before the plenary session of the Chamber of Deputies, to present draft laws drawn up by the Executive, which will be studied by representatives of the people during the the current ordinary period of sessions, for approval, in the event, by National Parliament.
As they were budget sessions, the Prime Minister presented the first Draft Law on the Liquidation of the General State Budgets for 2017, and the report on the execution of State Budgets, during the first quarter of 2018, while explaining the reasons why the Draft Law on State Budgets for the upcoming 2019 period, due to the ongoing negotiations with the International Monetary Fund.
The General State Budgets for 2017 were applied during an economic climate marked by a slight recovery in the international oil price, following the dramatic fall in summer 2014, the reduction in oil production, and the consolidation of public spending, with respect to the previous period.
The policies adopted by the Government, through the reduction in public spending, greater control over income, and an increase in the price of hydrocarbons, allowed a slight improvement in the real rate of economic growth, which reached -3.2%, against -9.7% for the previous period.
In 2017 income was 1.2 billion Franco CFA, some 10% more than in 2016, and the total spending was 1.3 billion, some 79% of the spend planned, and 1% less than in 2016, thanks to the policy of rationalisation, and greater control over public spending.
Within this economic and financial context, the period closed with a fiscal deficit of 145,565 million Franco CFA, equivalent to 2.5% of the GDP, against a forecast of 300,360 million.
The macroeconomic forecast for 2018 point to negative growth in GDP, in real terms, as a consequence of the contraction in the production of crude and low levels of economic activity in general, and for that reason the Government has announced that it will continue with the adoption of adjustment and reactivation measures for the economy, in order to guarantee the financial sustainability of the National Development Plan.
The execution of the General State Budgets during the first quarter of 2018 concluded with a deficit of 6,821 million Franco CFA, against 8,825 million registered for the same quarter from the previous period, signifying a reduction of 23%.
In that period, the total income was 293,649 million, some 12% above the income recorded for the 2017 period, and 2% above the forecasts, while spending was calculated at 300,470 million, representing 99% execution of the forecast, due to the contention and rationalisation efforts regarding public spending, implemented by the Government.
It was also revealed that, during the first quarter of this year, the Executive spent a total of 129,972 million Franco CFA in investments, compared to a forecast of 125,500 million, representing an execution of 103% with respect to the forecast.
The Prime Minister said that, despite the data that reflect the efforts of the Government to contain public spending and improve income, the adjustment and reactivation measures for non-petroleum would continue to be implemented, meaning the promotion of an extension of the tax base, an acceleration in the implementation of the Single Window, the reduction and control of exoneration and respect for the mechanisms and procedures of for executing spending, in accordance with the Law.
Accompanied by members of the Government, the Prime Minister presented the draft law drawn up by the Executive for the regulation of road transport throughout the nation, in order to create an efficient coordinated transport system which adequately covers the need for mobility of users, and favours the development of private initiative, within an atmosphere of the free market, in accordance within the regulatory framework of CEMAC and OHADA:
Through the unanimity of the two parliamentary groups, the plenary session of the Chamber of Deputies agreed to allow for procedure the draft laws presented on 16th by the Prime Minister, and the Chamber also accepted the reasons for the Government not presenting the draft State budget for next year.
Declaring support for the draft laws presented, the spokesperson for the Democratic Coalition, Salvador Nguema Mangue, invited the Executive to diversify the National economy, and implement the Single Window project.
The same support was declared by the spokesperson for the Democratic Party of Equatorial Guinea, Miguel Edjang Angue, who praised the Government for the measures adopted to stabilise the economy; measures which will allow improvements to future forecasts.
The PDGE parliamentary group also praised the Government for the successful celebration of the thirty-ninth anniversary of the Freedom Coup, and the VI Table for National Dialogue.
The session took place under the moderation of the President of the Chamber of Deputies, Gaudencio Mohaba Mesu, who declared willingness to support projects presented by the Executive for the development and well-being of the people.
Source: Chamber of Deputies Press Team