The supplementary budget reflects the first major policy moves under President Romuald Wadagni’s administration, designed to equip newly created or restructured ministries with the resources needed to fulfill their mandates. Growth targets remain robust at 7.5%, consistent with the nation’s strong performance over the last decade. The overall budget deficit is set at 487 billion CFA francs, representing 3.1% of GDP—a level the government asserts aligns with regional commitments within UEMOA.

Capital expenditures reach 1,572 billion CFA francs in authorized commitments, an 8.5% increase from the original budget. Recurrent ministry spending totals 1,777 billion CFA francs, while the civil service staffing cap remains unchanged at 102,740 full-time equivalents.

Social priorities at the heart of the law

The revised law places strong emphasis on improving living standards and expanding access to essential services. Tuition fees for girls in general secondary education are fully waived. A nationwide program to connect health centers to electricity and potable water is being expanded. Emergency care without upfront payment is now budgeted, alongside enhanced local social safety nets and targeted measures for vulnerable early childhood populations.

Agriculture receives a boost with 90 billion CFA francs in subsidies, and new initiatives target children living on the streets, particularly in northern and border regions.

Modernizing the tax system

The legislation introduces key structural tax reforms. One of the most discussed measures targets profits that companies retain without reinvestment. Firms failing to deploy undistributed earnings within three years of realization will face taxation. A reduced rate of 7.5% applies to voluntarily regularized cases before December 31, 2026; after that, the standard rate applies, with penalties for non-compliance.

Digital platforms—including hosting services, online sales, and money transfer operators—now fall under source tax withholding requirements. Capital gains from the sale of shares in Bénin-based companies become taxable regardless of the seller’s residency. On-site tax audit periods are shortened from three to two months for businesses with annual turnover under two billion CFA francs. The law also grants full legal validity to the digitalization of audit notices and procedural documents.

Only one amendment was adopted during committee review, proposed by Deputy Gérard Benoshi to improve the coherence of digitalization provisions. The Ministry of Economy and Finance supported the change.

Restructuring special accounts

The law streamlines the Treasury’s special allocation accounts by abolishing three funds: the Modernization Fund for Revenue Agencies, the Fund for Arts and Culture Development, and the Sports Development Fund. Any remaining balances will be transferred to the general budget.

The ‘Disaster Prevention and Management’ account has been renamed ‘Disaster Prevention, Management, and Vulnerability’ and will be funded in 2026 with 56.2% of mobile telephony royalties. Additionally, the criteria for distributing state financial support to local authorities now include climate change adaptation and mitigation considerations.

Economic and Social Council calls for stronger monitoring

The Economic and Social Council, consulted as required by the Constitution, issued a favorable opinion while proposing fourteen recommendations. Among these, the Council urges the government to establish a plan to bring the deficit below 3% of GDP by 2027–2029, publish semi-annual public debt sustainability reports, implement geolocated digital tracking for agricultural subsidies, and hold bi-annual budget execution reviews with the participation of the Council and the Court of Auditors.

Plenary debates were brief, with both the Bloc Républicain and Union Progressiste le Renouveau limiting their interventions to fifteen minutes each. Deputies from both sides broadly supported the bill, praising its continuity with the economic trajectory established under President Patrice Talon’s administration. They also stressed the need for rigorous execution oversight and tighter control over social measures.

The Finance Committee, reviewing the bill in depth, submitted four recommendations to the executive: prioritize tracking street children—especially in northern and border zones, clarify and publicize the emergency care program, extend school social measures to university services, and ensure equitable distribution of investments across all regions of the country.