Identifier
Created
Classification
Origin
08CONAKRY37
2008-01-15 12:14:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Conakry
Cable title:  

PRESIDENT APPROVES FINAL 2008 BUDGET

Tags:  ECIN EFIN ECON EMIN PGOV GV 
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VZCZCXRO2451
RR RUEHMA RUEHPA
DE RUEHRY #0037 0151214
ZNR UUUUU ZZH
R 151214Z JAN 08
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC 2052
INFO RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS CONAKRY 000037 

SIPDIS

DEPT PLEASE PASS TO USTR FOR LAURIE ANN AGAMA
COMMERCE FOR SALIHA LOUCIF

SIPDIS
SENSITIVE

E.O. 12598: N/A
TAGS: ECIN EFIN ECON EMIN PGOV GV
SUBJECT: PRESIDENT APPROVES FINAL 2008 BUDGET

REFTEL: A) CONAKRY 1138 B) CONAKRY 1161

UNCLAS CONAKRY 000037

SIPDIS

DEPT PLEASE PASS TO USTR FOR LAURIE ANN AGAMA
COMMERCE FOR SALIHA LOUCIF

SIPDIS
SENSITIVE

E.O. 12598: N/A
TAGS: ECIN EFIN ECON EMIN PGOV GV
SUBJECT: PRESIDENT APPROVES FINAL 2008 BUDGET

REFTEL: A) CONAKRY 1138 B) CONAKRY 1161


1. (SBU) SUMMARY. At the end of December, President Conte signed
the 2008 budget, with only slightly different figures from the
original budget submitted by the Prime Minister in October. END
SUMMARY.


2. (SBU) On December 27, President Conte signed Guinea's 2008
budget, improving over the 2007 budget process by six months. As
background, the budget process begins with the Prime Minister
preparing a budget and submitting it to the National Assembly. The
legislature can then change the figures proposed by the PM, both
spending and revenue. After the National Assembly approves the
budget, it is sent to the Office of the President for further review
and changes. Last year, the budget was not signed until June.


3. (SBU) The final budget figures are similar to those proposed by
Prime Minister Kouyate. (REFTELS) For example, the final budget
still assumes an exchange rate of 5,200 GnF to 1 USD, implying a
projected 22% fall in the value of the Franc.


4. (SBU) Guinea's FY2008 internal receipts are projected at US
$638,168,153. FY2008 spending is projected at US$941,346,863, a 68%
increase over FY2007. (NOTE: Spending in the FY2008 budget
originally submitted by the PM projected just a 38% increase. END
NOTE.) The budget deficit is projected to be US$303,178,710.


5. (SBU) The final 2008 budget also provides hard figures for
calculating the burden of external debt service. Projected interest
and principle payments consume 57% of anticipated government
revenue.


6. (SBU) COMMENT. The FY2008 budget is the first for PM Kouyate,
and as such, will provide insight into the PM's programs and
priorities. However, the 30% increase in spending is a 'gift' from
the National Assembly and/or the Office of the Presidency. Notably,
no one matched the increase in spending with additional revenues.
Post is now hearing of a campaign from the old guard at the
Presidency that criticizes Kouyate for having the largest deficit in
Guinea's history. Post has only secured the final budget summary
and has not yet been able to secure a copy of the line item final
budget. Post will provide detailed analysis when the line item
budget becomes available, and perhaps be able to identify who 'gave'
the gift to Kouyate. END COMMENT.



CARTER