GOC OFFERS ITS OWN VERSION OF BUDGET REVISION

UNCLAS NDJAMENA 000140 SENSITIVE SIPDIS STATE FOR AF/C AND AF/USSES NSC FOR GAVIN AND HUDSON LONDON FOR POL -- LORD PARIS FOR POL -- D'ELIA AND KANEDA ADDIS ABABA ALSO FOR AU E.O. 12958: N/A TAGS: PGOV ECON EPET EFIN IMF IBRD CBD EAID PREL CD SUBJECT: GOC OFFERS ITS OWN VERSION OF BUDGET REVISION REF: NDJAMENA 135 -------------- SUMMARY -------------- ¶1. (SBU) Finance Minister Gata Ngoulou outlined April 21 for Ambassador the GOC's plan to address the budget revenue shortfall precipitated by the drop in the price of oil, a resource that accounts for 75 percent of the GOC's budget. The GOC will fill the USD 80 million gap between 2009 receipts and revenues with a sum withdrawn from the regional central bank. Ngoulou asked for U.S. support with the IFIs in pursuing the GOC's vision of a revised 2009 budget. END SUMMARY. -------------- GOC WANTS TO REVISE ITS WAY -------------- ¶2. (SBU) Finance Minister Gata Ngoulou outlined April 21 for Ambassador the GOC's plan to address the budget revenue shortfall precipitated by the drop in the price of oil, a resource that accounts for 75 percent of the GOC's budget. The meeting request by the Finance Minister came just days after the IMF said that it was not able to persuade the GOC to revise its budget and hours before Ngoulou departed for the April 25-26 IFI meetings in Washington. ¶3. (SBU) Ngoulou explained that the GOC had budgeted CFA 220 billion (USD 440 million) for investment in the 2009 budget. He said that the IMF wanted them to halve those expenditures to CFA 110 billion (USD 220 million). The GOC counter-proposed CFA 180 billion (USD 360 million). The GOC would approach the regional central bank, BEAC, to cover the CFA 40 billion (USD 80 million) different, according to Ngoulou. The FINMIN continued the GOC's mantra, heard on many fronts, that the government could not reduce investment spending and cut projects already in the pipeline. He said that Chad was not like other countries with alterative options for resources and investments. ¶4. (SBU) Ngoulou asked for U.S. support with the IFIs in pursuing the GOC's vision of a revised 2009 budget. ¶5. (U) Minimize considered. NIGRO