The supplementary budget arrives early in President Romuald Wadagni‘s term, reflecting the government’s first major fiscal priorities. Its primary objectives include equipping newly established or restructured ministries with the necessary resources to fulfill their mandates while intensifying investments in social and productive sectors. With economic growth maintained at 7.5%, the revised budget aligns with the country’s strong performance over the past decade.

The overall budget deficit is set at 487 billion CFA francs—equivalent to 3.1% of GDP—a figure authorities assert remains within Bénin‘s commitments to the West African Economic and Monetary Union (WAEMU). Capital expenditures reach 1,572 billion CFA francs in commitments, an 8.5% increase from the original plan. Ordinary ministry expenses total 1,777 billion CFA francs, while the state’s payroll ceiling remains fixed at 102,740 full-time equivalents.

Social measures take center stage

The revised law places a strong emphasis on improving living standards and access to essential services. Key provisions include universal free secondary education for girls, an expanded electricity and potable water connection program for health centers, and coverage for essential emergency care without upfront payment. Additional measures target vulnerable children, particularly in northern and border regions, alongside a 90-billion-CFA franc agricultural subsidy package.

Modernized tax framework

The fiscal overhaul introduces several structural changes. Notably, companies retaining undistributed profits for over three years will face taxation, with a reduced 7.5% rate available for voluntary compliance before December 31, 2026. Digital platforms—including hosting, e-commerce, and money transfer services—now fall under withholding tax obligations. Capital gains from the sale of securities in Beninese companies become taxable regardless of the seller’s residence.

Tax audits for small businesses (annual turnover under 2 billion CFA francs) are streamlined from three to two months, and the law formalizes the digitalization of audit notices and procedural documents. A single amendment, proposed by Deputy Gérard Benoshi, was adopted to enhance coherence in these digitalization provisions.

Special accounts reformed

The budget law also streamlines special treasury accounts by dissolving three: the Fund for Modernizing Revenue Authorities, the Fund for Arts and Culture Development, and the Sports Development Fund. Their remaining balances will be transferred to the general budget.

The Disaster Prevention and Management Account is renamed to include vulnerability, and will be funded in 2026 by 56.2% of mobile telephony royalties. Additionally, criteria for state financial support to local authorities now incorporate climate change adaptation and mitigation measures.

Economic council engages and debate rapid

The Economic and Social Council, consulted under constitutional provisions, issued a favorable opinion while proposing fourteen recommendations. These include a plan to reduce the deficit below 3% of GDP by 2027–2029, semi-annual public debt sustainability reports, and the implementation of geolocated digital tracking for agricultural subsidies. Semi-annual budget execution reviews involving the Council and the Audit Court were also suggested.

Plenary debates were concise, with both parliamentary groups—Bloc républicain and Union progressiste le renouveau—limiting their interventions to fifteen minutes each. While broadly supporting the text, lawmakers stressed the need for vigilant execution of expenditures and rigorous oversight of social programs. The Finance Commission, which reviewed the draft, forwarded four key recommendations to the executive: prioritizing child welfare in northern and border zones, clarifying emergency care protocols, expanding social measures to university student services, and ensuring equitable territorial investment distribution.