• These niches that bring in big money
• Telecom, drinks, mining funds
• Voluntary contribution broken down
LOn July 25, another act of the government’s strategy of mobilizing funds to finance the war that the terrorists have been imposing on us for almost 8 years took place. This, with the modification of the Mining Code. The government has decided to submit the modification of the Mining Code, in order to take part of the resources from the Local Mining Development Fund (FMDL) for the war effort. The Fund is made up of 1% of the turnover of mining companies and 20% of state royalties dedicated to financing municipal and regional development plans, as set by article 26 of the Mining Code. It is this article which has been modified to benefit the Patriotic Support Fund for the duration of the war. From now on, 85% of royalties will go to the Support Fund, as well as 20% of the 1% of the turnover of mining companies.
How much will this bring in per year to the FSP? Around 12 billion FCFA, according to the government, during its hearing by the Commission responsible for the file, the Sustainable Development Commission. This amount will replenish the FSP.
The army, which was not prepared for this type of conflict, was forced to adapt to this new situation. To do this, additional means had to be found to finance military equipment and training of men. Where to find them? The first niche under the successive governments of Roch Marc Christian Kaboré was the increase in the budget of the armies, with incidentally the voluntary contributions of the Burkinabè to the war effort.
But it was from the coup d’état of the MPSRI then the MPSR II that the Burkinabè began to take the full measure of the war effort that the new military authorities expected of them. In the euphoria of the arrival of MPSR II, voluntary contributions have experienced a boom via mobile money payments, bank transfers, in-kind donations and even voluntary payroll deductions.
But there you have it, the needs are enormous: the army needs drone helicopters, radars for telecoms and all of this costs money that needs to be collected. This is where act one of this structured mobilization of resources comes into play, with decree n°2023-025/MEFP/SG of January 25, 2023 setting the rates, amounts and methods of collecting the contribution of citizens to the Patriotic Support Fund (FSP), through the consumption of cigarettes, cigars, cigarillos, drinks, perfumery or toiletries and cosmetic products. Thus, to voluntary contributions which stagnated at 400 million FCFA, the Transition added compulsory contributions, collected on certain products. The objective is 100 billion FCFA over one year. But on June 5 2023, we were still far from the objective: “the amount of collections, all sources combined, amounts to 20,752,574,695 FCFA”.
Even if compared to the situation of collections from the previous point by the FSP steering committee, this represents an increase of 164%. » In one semester, only a quarter of the amount was mobilized.
But at the Ministry of the Economy, Finance and Foresight, we are monitoring the level of mobilization of the war effort like milk on the stove. On June 30, 2023, the President issues a decree promulgating Law No. 009-2023/ALT of June 24, 2023, establishing a special contribution on the consumption of certain products and services. It is now established for the benefit of the State budget, a special contribution on the consumption of certain products and services. The new levies concern telecoms (5%) and subscriptions and re-subscriptions on TV program packages (10%), as well as a levy on the sale of land outside subdivisions (1%).
Of these new compulsory deductions, the deductions on prepaid mobile services could bring in a lot of money, if we look at the turnover of all operators.
In 2021, their cumulative turnover was estimated at nearly 400 billion. A projection of a 5% levy would be around 20 billion in revenue per year. Knowing that the decree came into force in June, in six months, the Patriotic Support Fund could collect around 10 billion, if users do not change their mobile consumption habits. From 2016 to 2021, operators’ turnover increased from 297.8 billion FCFA to 399.5 billion FCFA.
FW
Boxed
The last point of the FSP
20,752,574,695 FCFA, this is the Fund’s revenue as of June 2, 2023. Contributions from consumers of BRAKINA SODIBO products represent 78.96%, imported products 11.08%, other voluntary contributions 3.73 % and MABUCIG (Burkinabe cigarette factory) 2.64%. Compared to the figures for March 31, 2023, the ministry notes an increase of 209.81%. Thus, the contribution increased from 7 to 20 billion FCFA in three months.
Source: Guidance Council of the Patriotic Support Fund.
