VZCZCXYZ0006
RR RUEHWEB

DE RUEHKI #0588 1511504
ZNR UUUUU ZZH
R 311504Z MAY 07
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 6203
INFO RUEAIIA/CIA WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS KINSHASA 000588 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PGOV CG
SUBJECT: DRC PARLIAMENT DEBATES 2007 BUDGET 
 
 
¶1. (U) The DRC's 2007 budget is currently before the National 
Assembly. Members debated the budget May 29 and 30, and a 
final vote is expected in the coming weeks. 
 
¶2. (SBU) The proposed budget of approximately USD 2.14 
billion projects domestic revenue of about USD 1.2 billion - 
60 percent of the total, external funding of about USD 890 
million and an estimated funding gap of about USD 87 million. 
(Comment: The figure of USD 890 million in external funding 
is an optimistic projection, and the GDRC has not received a 
commitment of this amount. End comment.) 
 
¶3. (U) Nearly one-third of the expenditures - about USD 671 
million - are budgeted to service external debt, while about 
USD 54 million is budgeted for programs in President Kabila's 
five priority development categories.  The budget projects a 
GDP of 6.5 percent, average inflation of 8.8 percent, and an 
average exchange rate of 560 Congolese francs per USD. 
 
¶4. (SBU) Several parliamentary groups, including some in the 
AMP alliance, have criticized the budget, according to 
contacts within Parliament and MONUC.  Opposition party 
groups, including the MLC, have publicly declared the budget 
"unacceptable" and called for its rejection. Passage of the 
budget will be an important test for the AMP and the 
government of Prime Minister Gizenga. 
 
¶5. (U) The Assembly has not set a final voting date, but it 
will not likely occur earlier than mid-June.  IMF officials, 
who have provided technical assistance in drafting the 
budget, do not expect the Parliament to pass the budget 
before the end of June. (Note: The regular session of 
Assembly ends June 15, and an extraordinary session is 
expected to begin June 25. End note.) 
 
¶6. (U) The Prime Minister is scheduled to respond on June 2 
to questions about the budget that Members of Parliament have 
submitted to the government. Following that discussion, the 
Assembly will vote on the current draft.  The Parliament's 
Economic and Financial Commission will then will then review 
and amend the draft as necessary and return it to plenary for 
a final vote. If the Assembly approves the budget, it must 
also harmonize its version with that of the Senate before 
sending it to the President for promulgation. 
 
Comment 
------- 
 
¶7. (U) The Parliament is certainly feeling pressure from 
numerous sources to finally approve a national budget. Plans 
for the DRC's donor Consultative Group meeting, tentatively 
scheduled for June 20-22 in Kinshasa, is one source of 
pressure, but prospects are not good that a final budget will 
emerge by the date.  The presence of an IMF team, in Kinshasa 
until June 7, is also helpfully adding to that pressure. 
Whatever the result, however, few Congolese will be pleased, 
given the meager revenues available to accomplish an enormous 
variety of publicly-demanded tasks. End comment. 
MEECE