Africa Newsroom — Libreville, Gabon — In a significant move towards financial transparency and accountability, the Gabonese government, under the leadership of President Brice Clotaire Oligui Nguéma, has introduced new regulations to govern the expenses of administrative and regulatory councils. These measures come as part of a broader strategy to strengthen public finance management and ensure efficient use of state resources.
The new rules, which are expected to be fully implemented by the end of 2024, aim to clamp down on wasteful spending and improve the governance of public assets. The government has taken several steps to address these issues, including the establishment of a new directorate general of state participations, which will oversee the management of public assets and mitigate fiscal risks associated with state-owned enterprises (SOEs).
One of the key developments is the inclusion of previously unrecorded extra-budgetary expenditures in the 2024 budget, which reveals a weaker fiscal position. However, the government has also initiated a digitalization drive to enhance the tracking and management of public resources, particularly through the Treasury Single Account (TSA). A new platform is set to be fully operational in the first half of 2024, further streamlining public finance processes.
Additionally, a budget law for 2024, which focuses on fiscal consolidation, was adopted in December 2023. This law, coupled with the establishment of the High Commissioner’s Office for Infrastructure Projects in April 2024, is intended to coordinate and facilitate the implementation of various infrastructure initiatives across the country.
The government has also introduced new minimum thresholds for public procurement, aiming to give preference to small and medium-sized enterprises (SMEs). This initiative is part of a broader effort to simplify procurement procedures and promote economic inclusion.
Another notable development is the establishment of an administrative procedure for refunding Value Added Tax (VAT) credits, effective from January 1, 2024. This move is expected to improve the efficiency of tax collection and ensure that businesses receive timely refunds.
The new regulations for administrative and regulatory councils are part of a larger push to combat under-budgeting and ensure compliance with existing public finance management (PFM) rules across all levels of the public sector. This includes preventing spending, debt issuance, or asset transactions without proper budget authorization and transparent procedures.
Experts believe that these new measures will significantly improve the financial health of the Gabonese government and enhance public trust in the management of state resources. The introduction of these regulations comes at a time when the African continent is increasingly focusing on improving public financial governance to foster economic growth and development.
As Gabon implements these new measures, it joins a growing number of African countries that are prioritizing fiscal transparency and accountability. The success of these initiatives will not only have a direct impact on the country’s economy but also set a precedent for other nations in the region.
Source: Gabon Newsroom
Additional reporting by ImNews
