Bénin 2026: the revised finance law passes unanimously
The National Assembly of Bénin has approved the 2026 revised finance law during a plenary session at the Governor’s Palace in Porto-Novo. The vote, supported unanimously by all present and represented deputies, marks a significant budget adjustment with an 8% increase, raising the total to over 4,148 billion CFA francs compared to the initially planned 3,700 billion.
Budget highlights and economic outlook
The revised law reflects the government’s commitment to accelerating public investment while maintaining fiscal responsibility. Economic growth remains projected at 7.5%, consistent with the strong performance of recent years. The overall budget deficit is set at 487 billion CFA francs, representing 3.1% of GDP—a level deemed compatible with Bénin’s commitments to the West African Economic and Monetary Union (UEMOA).
Capital expenditures rise to 1,572 billion CFA francs, an 8.5% increase from the original budget, while ordinary ministry spending reaches 1,777 billion CFA francs. The state payroll ceiling remains unchanged at 102,740 full-time equivalents.
Social measures take center stage
The revised budget prioritizes inclusive development with several landmark social initiatives. Secondary school tuition fees are now fully covered for girls nationwide. A major expansion of electricity and potable water access is underway for rural health centers. Emergency care without upfront payment is now budgeted, alongside strengthened social safety nets and targeted support for vulnerable early childhood populations.
Agriculture receives 90 billion CFA francs in subsidies, and special attention is given to street children, particularly in northern and border regions. The government has also pledged to enhance social protection programs, ensuring broader access to essential services across the country.
Modernizing the tax framework
The revised law introduces key fiscal reforms to improve compliance and broaden the tax base. One of the most significant changes is the taxation of undistributed profits. Companies that retain earnings for more than three years without reinvestment will face taxation, with a reduced rate of 7.5% applying to voluntary regularizations completed by December 31, 2026. After this date, the standard rate will apply, subject to penalties.
Digital platforms—including online marketplaces, money transfer services, and hosting providers—are now subject to withholding tax obligations. Capital gains from the sale of shares in Bénin-based companies will be taxable regardless of the seller’s residence. Tax audits for small businesses (with annual turnover under 2 billion CFA francs) are shortened from three to two months, and all verification notices and procedural documents are now fully digitized with full legal validity.
Restructuring public accounts and strengthening governance
The law streamlines special Treasury accounts by eliminating three dedicated funds: the Fund for Modernization of Revenue Authorities, the Fund for Arts and Culture Development, and the Sports Development Fund. Their remaining balances are transferred to the general budget.
The “Disaster Prevention and Management” account has been renamed “Disaster Prevention, Management, and Vulnerability Reduction” and will be funded in 2026 by 56.2% of mobile telephony royalties. Additionally, criteria for state financial support to local governments now include climate adaptation and mitigation priorities.
Expert and parliamentary perspectives
The Economic and Social Council (CES), consulted as required by the constitution, issued a favorable opinion with 14 recommendations. Among these, the CES urges the government to develop a plan to reduce the deficit below 3% of GDP by 2027–2029, publish semi-annual public debt sustainability reports, implement a geolocated digital tracking system for agricultural subsidies, and conduct bi-annual budget execution reviews with participation from the CES and the Audit Court.
Plenary debates were concise, with the majority and opposition groups each limiting their interventions to 15 minutes. Both blocs expressed strong support for the revised budget, praising its alignment with the economic trajectory established under President Patrice Talon. However, they emphasized the need for rigorous oversight in expenditure execution and strict monitoring of social programs.
The Finance Commission submitted four key recommendations to the executive: prioritize tracking of street children with special focus on northern and border zones, clarify and promote the emergency care program, extend educational social benefits to university students, and ensure equitable distribution of investments across all regions.