Togo: the measures taken to deal with the high cost of living this year cost about 3% of the national GDP

Economic governance
Friday, 09 December 2022 03:35
Togo: the measures taken to deal with the high cost of living this year cost about 3% of the national GDP

(Togo First) - All measures taken by the Togolese government to tackle the rising cost of living and security issues faced by Togo in 2022 cost about CFA120 billion or nearly 3% of the country’s GDP in 2021. 

The Ministry of Economy and Finance disclosed the figure in a statement on December 6, 2022, during the presentation of the IMF's Regional Economic Outlook for Sub-Saharan Africa, October 2022 edition.

Last September, Togo First estimated at around CFA90 billion the cost of 10 of the “new measures" enacted by Faure Gnassingbé and his government to deal with the high cost of living.

Though they were taken to ease socioeconomic tensions spurred by rising inflation, especially higher prices of oil and imported products, the measures caused Togo’s budget deficit to widen, from 5% to 8% of GDP. Next year, however, this indicator is expected to fall back to 6.5% of GDP.

According to the ministry of finance, most of the measures are included in the 2023 Finance Bill, which is at the parliament’s level.

"The government remains committed to pursuing fiscal reforms aimed at consolidating public finances and controlling the country's debt level in the medium term," said Agbenoxevi Paniah, Secretary General of the Ministry of Economy and Finance.

As a reminder, the measures taken include a 10% increase in the index value of salaries and retirement pensions for civil and military civil servants and public sector retirees; an additional 5% increase in retirement pensions for all civil and military retirees in the public and private sectors; a special grant of CFA3 billion by direct monetary transfer to parents of students for the purchase of school supplies. Also, a subsidy of CFA2.5 billion for the purchase of writing and reading books for primary school students; an increase in the fertilizer subsidy from CFA6 billion to CFA7.5 billion in order to stabilize prices throughout the 2021/2022 season.

Ayi Renaud Dossavi

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