Burundi will raise government spending by about 25 percent in the next fiscal year, supported by rising revenues from mining and efforts to diversify exports, Finance Minister Alain Ndikumana said on Friday.
The central African nation plans to spend 6.7 trillion Burundian francs (US$2.26 billion) in the 12 months starting July, up from 5.4 trillion francs in the current fiscal year, according to the budget presentation.
The expansion reflects government expectations of stronger economic activity, particularly in agriculture and mineral production, as authorities seek to broaden the country’s narrow revenue base.
Growth is forecast to rise to 5.5 percent next year, up from 4.7 percent, driven by increased irrigated agricultural output and a gradual expansion in mining production, Ndikumana said.
Mining remains a key strategic sector for Burundi, with output including gold, tin, tantalum and tungsten, all of which are important export commodities for the resource-dependent economy.
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The government has increasingly turned to the mining sector as a potential engine of growth and foreign exchange earnings, alongside agriculture, which remains the backbone of the economy and employs the majority of the population.
Officials said the stronger fiscal outlook is partly linked to expected improvements in export performance and ongoing efforts to formalise and expand mineral production.
As part of broader policy adjustments, Burundi will also scrap import taxes on electric and hybrid vehicles, a move the finance minister linked to fuel shortages that have been worsened by global supply disruptions and recent geopolitical tensions.
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The decision reflects growing pressure on governments in developing economies to manage energy costs and reduce dependence on imported fossil fuels, particularly in the context of volatile global oil markets.
Fuel shortages have been a persistent challenge in Burundi, affecting transport, commerce and industrial activity, and contributing to inflationary pressures in the wider economy.
Economists say the planned increase in public spending could support short-term growth but will require careful fiscal management to avoid widening deficits or increasing debt vulnerabilities.
Burundi remains one of the world’s poorest countries, with limited infrastructure and heavy reliance on external aid, making fiscal planning highly sensitive to commodity price fluctuations and donor support.
The government has prioritised infrastructure investment, agricultural modernisation and mining sector development as key pillars of its medium-term development strategy.
If successful, officials believe these reforms could help sustain higher growth levels and improve living standards over the coming years, though analysts caution that structural constraints remain significant.
