Supporting the reform of public finances

Context

Benin's economy has grown steadily in recent years. Despite this, large parts of the population live close to the poverty line. A lack of financial resources in the national and municipal budgets makes it harder to achieve the Sustainable Development Goals (SDGs) of the United Nations.

Objective

Benin implements national and local budget cycles in accordance with the principles of good financial governance.

Approach

The project supports the reform of public finances of the central state and the municipalities in four main areas:

1. Inclusive, efficient and realistic budgets
   Training courses for administrative staff improve economic forecasts and tax estimates. In addition, digital solutions, such as the national information system for managing public finances, optimise the budget preparation process.
2. Taxes as a common civic obligation
   The project advises the tax administration on improving the state's self-financing. It implements digital solutions, promotes tax morale by raising public awareness, combats international tax evasion and supports green and gender-sensitive tax legislation.
3. Transparency for public finances
   The project supports dialogue between the state, municipalities and civil society for transparent budget planning and accounting. It takes disadvantaged groups into account. It also assists the Supreme Audit Institution in auditing financial statements and publishing audit results.
4. Investing in the future
   With expertise in cost-benefit analyses and public-private dialogues, public expenditure can be better planned. In addition, public investment should take into account the needs of the economy and vulnerable groups and optimise the conditions for private investment.

The European Union is co-financing activities in all four priority areas.

Last update: January 2024