On Friday, the National Assembly of Bénin, meeting in plenary session at the Palais des gouverneurs in Porto-Novo, unanimously approved the rectificative finance law for the 2026 fiscal year. The revised budget increases by 8%, reaching more than 4,148 billion CFA francs, compared to the 3,700 billion initially planned.

This budget adjustment comes at the start of President Romuald Wadagni’s term and reflects the initial directions of his government. Its main goal is to equip newly created or restructured ministries with the necessary resources, while stepping up interventions in social and productive sectors.

The economic growth rate remains at 7.5%, continuing the performance of the past decade. The overall budget deficit is set at 487 billion CFA francs, or 3.1% of GDP, a level the government considers compatible with Bénin’s commitments within the West African Economic and Monetary Union (UEMOA).

Capital expenditure reaches 1,572 billion CFA francs in commitment authorisations, up 8.5% from the initial law. Ordinary spending by ministries amounts to 1,777 billion CFA francs. The ceiling for state-funded jobs stays at 102,740 full-time equivalents.

Social measures take centre stage

Several provisions reflect the government’s stated priority on purchasing power and access to basic services. School fees are now free for girls in general secondary education. A programme to connect health centres to electricity and drinking water has been expanded. Coverage of vital emergencies without upfront payment is written into the budget, along with reinforcement of the local social safety net and measures for vulnerable young children.

The law also includes increased support for agriculture, with 90 billion CFA francs in subsidies, and measures for street children, with special attention requested for northern and border areas.

Modernised tax framework

On the fiscal side, the adopted text introduces several structural measures. The most discussed during committee work concerns the taxation of undistributed distributable profits. Companies that have not reinvested their profits within three years will be subject to taxation. To encourage voluntary compliance, a reduced rate of 7.5% applies to past situations regularised before 31 December 2026. After that date, the standard rate applies along with penalties.

Additionally, digital platforms—accommodation, online sales, money transfers—now fall under withholding tax, with an obligation on platform operators. Capital gains from the sale of securities of Béninese companies become taxable regardless of the seller’s residence. On-site tax audit periods are reduced from three to two months for companies with annual turnover below two billion CFA francs. The dematerialisation of audit notices and procedural acts is given full legal effect.

Only one amendment was adopted in committee, initiated by deputy Gérard Benoshi, to strengthen the coherence of provisions relating to dematerialisation. The Ministry of Economy and Finance gave a favourable opinion.

Special accounts abolished, one account renamed

The law also cleans up the treasury’s special allocation accounts. Three accounts are abolished: the Fund for Modernisation of Financial Administrations, the Fund for Development of Arts and Culture, and the Fund for Development of Sports. Their available balances are transferred to the general budget.

The account ‘Prevention and Management of Disasters’ is renamed ‘Prevention, Management of Disasters and Vulnerability’ and will be funded in 2026 by 56.2% of mobile telephony royalties. Finally, the criteria for distributing state financial support to local authorities now include the dimension of adaptation and mitigation to the effects of climate change.

Economic and Social Council vigilant, swift plenary debate

Consulted in accordance with constitutional provisions, the Economic and Social Council issued a favourable opinion while making fourteen recommendations. The institution notably calls on the government to define a plan to bring the deficit below 3% of GDP by 2027-2029, to publish semi-annual reports on public debt sustainability, to set up geolocated digital traceability for agricultural subsidies, and to organise semi-annual budget execution reviews with the CES and the Court of Auditors.

Plenary debates were brief, as the two parliamentary groups—the Republican Bloc and the Progressive Union for Renewal—agreed to limit their interventions to fifteen minutes each. Deputies from both sides broadly supported the text, praising continuity with the economic trajectory set under President Patrice Talon, while calling for greater vigilance in spending execution and control of social measures.

The Finance Committee, which examined the bill, transmitted four recommendations to the executive: ensure follow-up of street children with priority for northern and border areas, clarify and publicise the vital emergency coverage programme, extend school social measures to university welfare, and guarantee equitable distribution of investments across the national territory.