Benin’s National Assembly, convening in plenary session at the Palais des Gouverneurs in Porto-Novo on Friday, gave its unanimous approval to the revised finance law for the 2026 fiscal year. This legislative action endorses an 8% increase in the national budget, elevating it to over 4,148 billion CFA francs, a significant rise from the 3,700 billion initially projected in the foundational finance law.

This budgetary adjustment marks the early stages of President Romuald Wadagni’s term, reflecting his administration’s initial policy directions. Its core objectives include equipping newly established or restructured ministries with essential resources to fulfill their mandates, while simultaneously intensifying interventions across critical social and productive sectors.

The nation’s economic growth rate is projected to remain stable at 7.5%, continuing the robust performance observed over the past decade. The overall budget deficit is set at 487 billion CFA francs, representing 3.1% of the GDP. The government asserts that this figure aligns with Benin’s regional commitments within the UEMOA framework.

Capital expenditures are earmarked at 1,572 billion CFA francs in commitment authorizations, an 8.5% increase compared to the initial law. Ordinary ministerial expenditures total 1,777 billion CFA francs. The ceiling for state-paid employment is maintained at 102,740 full-time equivalents.

Social provisions at the core of the legislation

Several measures within the new law underscore the government’s commitment to enhancing purchasing power and improving access to fundamental services. Notably, secondary school tuition fees for girls are now universally waived. A comprehensive program to connect health centers to electricity and potable water networks is being expanded. The budget also allocates funds for the provision of vital emergency care without requiring upfront payment, alongside strengthening local social safety nets and implementing initiatives for vulnerable young children.

Furthermore, the law allocates substantial support to the agricultural sector, providing 90 billion CFA francs in subsidies. Specific provisions are also included for children living on the streets, with a particular focus on interventions in northern and border regions.

Modernizing the fiscal framework

From a fiscal perspective, the adopted text introduces several structural reforms. A widely discussed provision addresses the taxation of undistributed distributable profits. Companies that fail to reinvest their profits within three years of their realization will now be subject to taxation. To encourage voluntary compliance, a reduced rate of 7.5% will apply to past situations regularized before December 31, 2026. After this deadline, the standard tax rate will be enforced, accompanied by penalties.

Moreover, digital platforms—encompassing hosting, online sales, and money transfers—are now subject to withholding tax, with platform operators bearing the obligation. Capital gains derived from the sale of securities in Beninese companies are now taxable, irrespective of the seller’s residency. The duration of on-site tax audits has been shortened from three to two months for businesses with an annual turnover below two billion CFA francs. The dematerialization of audit notices and procedural documents has been formally recognized, carrying full legal effect.

Only one amendment was adopted during the commission’s review, proposed by Deputy Gérard Benoshi, aimed at bolstering the consistency of provisions related to this dematerialization. The Ministry of Economy and Finance had previously expressed a favorable opinion on this amendment.

Special accounts streamlined, one account renamed

The law also undertakes a rationalization of the Treasury’s special allocation accounts. Three specific funds have been abolished: the Financial Regulatory Modernization Fund, the Arts and Culture Development Fund, and the Sports Development Fund. Their available balances will be transferred to the general budget.

The existing “Disaster Prevention and Management” account has been rebranded as the “Disaster Prevention, Management, and Vulnerability” account. For 2026, this account will be financed by 56.2% of mobile telephony royalties. Finally, the criteria for allocating state financial contributions to local authorities now incorporate considerations for adapting to and mitigating the effects of climate change.

Economic and Social Council’s vigilance and swift plenary debate

In accordance with constitutional requirements, the Economic and Social Council was consulted and issued a favorable opinion, accompanied by fourteen specific recommendations. The institution urged the government to outline a strategy for reducing the deficit to below 3% of GDP by 2027-2029, to publish semi-annual reports on public debt viability, to implement geo-localized digital traceability for agricultural subsidies, and to conduct semi-annual budget execution reviews in the presence of both the CES and the Court of Auditors.

Debates during the plenary session were notably brief, as both parliamentary groups—the Bloc républicain and the Union progressiste le renouveau—agreed to limit their interventions to fifteen minutes each. Deputies from both sides largely endorsed the legislation, commending its alignment with the economic trajectory established under the presidency of Patrice Talon. However, they also called for heightened vigilance in expenditure execution and meticulous oversight of social measures.

The finance commission, which conducted a thorough review, submitted four recommendations to the executive branch: ensuring follow-up for street children with priority given to northern and border areas, clarifying and popularizing the vital emergency care program, extending school social measures to include university services, and guaranteeing an equitable distribution of investments across the entire national territory.