On Friday, the National Assembly of Bénin unanimously adopted the amended finance law for the 2026 fiscal year during a plenary session at the Palais des gouverneurs in Porto-Novo. The revised budget increases spending by 8%, rising to over 4,148 billion CFA francs compared to 3,700 billion initially planned.

This budget adjustment comes at the start of President Romuald Wadagni’s term and reflects his government’s initial priorities. Its main goal is to equip newly created or restructured ministries with the resources they need to carry out their duties, while also stepping up investment in social and productive sectors.

The economic growth rate remains at 7.5%, in line with the performance of the last decade. The overall budget deficit is set at 487 billion CFA francs, equivalent to 3.1% of GDP, a level the government says is 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, an 8.5% increase from the initial budget. Ordinary spending by ministries totals 1,777 billion CFA francs. The cap on state-funded positions stays at 102,740 full-time equivalents.

Social measures at the heart of the text

Several provisions underscore the government’s stated priority for purchasing power and access to basic services. School fee exemptions are now extended to all girls in general secondary education. A programme connecting health centres to electricity and drinking water has been expanded. Coverage of vital emergencies without upfront payment is included in the budget, along with stronger local social safety nets and measures for vulnerable young children.

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

A modernised tax framework

On the fiscal side, the adopted text introduces several structural measures. The most discussed in committee concerns taxation of distributable but undistributed profits. Companies that fail to reinvest their profits within three years of realising them will be subject to taxation. To encourage voluntary compliance, a reduced rate of 7.5% applies to past situations regularised before December 31, 2026. After that deadline, the standard rate applies, along with penalties.

Furthermore, digital platforms — covering accommodation, online sales, and money transfers — now fall under withholding tax, with obligations on platform operators. Capital gains from the sale of securities in Bénin-based companies become taxable, regardless of the seller’s residence. On-site tax audit periods are shortened from three to two months for companies with annual turnover below two billion CFA francs. Digitalisation of audit notices and procedural acts is now legally binding.

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

Special accounts abolished, one renamed

The law also cleans up special Treasury allocation accounts. Three accounts are eliminated: the Fund for Modernising Financial Administrations, the Fund for Development of Arts and Culture, and the Fund for Sports Development. Their remaining balances revert to the general budget.

The account named “Prevention and Disaster Management” is renamed “Prevention, Disaster Management and Vulnerability” and will be funded in 2026 by 56.2% of mobile phone royalties. Finally, criteria for distributing state financial assistance to local authorities now include climate change adaptation and mitigation dimensions.

A vigilant economic and social council and a swift plenary debate

Consulted as per constitutional provisions, the Economic and Social Council gave 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, publish semi-annual public debt sustainability reports, implement geolocated digital traceability for agricultural subsidies, and organise half-yearly budget execution reviews with the CES and the Court of Auditors.

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

The finance committee, which handled the bill, forwarded four recommendations to the executive: track street children with priority given to northern and border zones, clarify and publicise the vital emergency coverage programme, extend school social measures to university services, and ensure equitable distribution of investments across the national territory.