The National Assembly of Bénin has officially passed the amended finance law for the 2026 fiscal year during a plenary session held at the Palais des Gouverneurs in Porto-Novo. This legislative update, which received unanimous support from the deputies present, marks an 8% increase in the national budget. The total expenditure is now set at over 4,148 billion CFA francs, up from the 3,700 billion CFA francs initially projected.
Economic stability and budget growth
This budgetary adjustment coincides with the early stages of President Romuald Wadagni’s administration, reflecting the strategic priorities of his government. The primary objective is to provide newly established or restructured ministries with the resources needed to fulfill their mandates while boosting investment in social and productive sectors.
Economic projections remain optimistic, with a growth rate maintained at 7.5%, continuing a decade-long trend of strong performance. The overall budget deficit is capped at 487 billion CFA francs, representing 3.1% of the GDP. Government officials emphasize that this fiscal target remains strictly within the convergence criteria set by the UEMOA. Capital expenditures have been raised to 1,572 billion CFA francs in commitment authorizations, an 8.5% rise, while ministry operating expenses are set at 1,777 billion CFA francs. The state payroll remains stable, with a ceiling of 102,740 full-time equivalent positions.
Strengthening the social safety net
The 2026 amended law places a heavy emphasis on improving living standards and expanding access to essential services. A key highlight is the generalization of free secondary education for girls. Additionally, the government is extending electricity and drinking water connection programs to health centers across the country. A significant healthcare reform is also included: the budget now covers vital emergency care without requiring advance payment.
Agricultural development is another pillar of this text, with 90 billion CFA francs dedicated to subsidies. Furthermore, the law introduces enhanced social protection measures for vulnerable children, particularly those living on the streets, with a specific focus on the northern and border regions of Bénin.
Modernizing the tax landscape
Several structural fiscal reforms have been introduced to modernize the tax system. One of the most notable measures targets undistributed profits. Companies that fail to reinvest their profits within three years of earning them will now face taxation. To encourage voluntary compliance, a reduced tax rate of 7.5% is available for those who regularize their past situations before December 31, 2026. After this grace period, standard rates and penalties will apply.
The law also expands the tax base to include digital platforms. Services such as online sales, digital hosting, and money transfers will now be subject to withholding tax at the source. Additionally, capital gains from the sale of shares in Beninese companies are now taxable regardless of the seller’s place of residence. To ease the burden on smaller businesses, the duration of on-site tax audits has been reduced from three to two months for companies with an annual turnover of less than two billion CFA francs. The digitalization of tax notices and legal procedures has also been fully codified.
Administrative streamlining and institutional oversight
The new law proceeds with a cleanup of the Treasury’s special accounts. Three specific funds—the Fund for the Modernization of Financial Agencies, the Arts and Culture Development Fund, and the Sports Development Fund—have been abolished, with their remaining balances transferred to the general budget. Meanwhile, the account dedicated to disaster management has been renamed the “Prevention, Management of Disasters and Vulnerability” fund. For 2026, it will be financed by 56.2% of mobile telephony royalties.
The Economic and Social Council (CES), consulted as part of the constitutional process, issued a favorable opinion while offering fourteen recommendations. These include a call for a clear plan to bring the deficit below 3% of GDP by 2027-2029 and the implementation of digital tracking for agricultural subsidies. During the parliamentary session, both the Bloc Républicain and the Union Progressiste le Renouveau supported the bill, viewing it as a continuation of the economic trajectory established under Patrice Talon while urging careful monitoring of social spending execution.
