A revised wartime budget currently before Congolese lawmakers reveals the mounting fiscal pressure facing the country, as Rwandan-backed M23 rebels tighten their hold on large parts of the eastern border region. The combined impact of surging military expenses and a sharp decline in tax collection is weighing heavily on the nation’s finances.
The International Monetary Fund (IMF) recently noted that the conflict is significantly affecting public resources, highlighting the shutdown of revenue offices in rebel-held areas and the rise in defense-related spending.
Originally expected in March, the budget proposal was approved by President Felix Tshisekedi’s cabinet last Friday and has now been submitted to parliament for review and approval. It outlines a slight decrease in total spending to $17.2 billion and projects a drop in tax revenue from an expected 15.1% of GDP under the previous budget to 12.5%, according to cabinet meeting minutes.
In March, the finance ministry announced a salary increase for soldiers and police forces, aiming to lift morale amid growing security concerns.
That decision is expected to add “$500 million this year,” according to both a military official and a government source who spoke on condition of anonymity.
Additionally, extraordinary military-related costs have reportedly amounted to “$1 billion in the first four months of 2025,” two other government sources said, also requesting anonymity due to the sensitivity of the information.
No immediate response was received from a government spokesperson regarding inquiries into the budget and military expenditures.
Rene Tapsoba, the IMF’s resident representative in Congo, told Reuters that the domestic budget deficit, which stood at 0.8% of GDP in 2024, is forecasted to widen to 1.2% this year. He further stated that the conflict and loss of control over mineral-rich eastern territories could cause a “4% shortfall in expected tax revenue.”
While acknowledging the burden of heightened security costs, Tapsoba also noted the government’s efforts to rein in other expenses.
“Very high,” he said of the extraordinary defense spending, but added that the government has sought to reduce its operating costs by slashing ministry budgets and cutting the salaries of top officials.
Despite increased funding for the military, front-line units continue to report shortages of essential supplies, including food, ammunition, and basic gear. A Congolese general told Reuters that much of the military funding appears to have gone toward weapons purchases.
“The bulk of these funds are handled outside the formal budget framework,” said a senior finance ministry official, who declined to be named. “We don’t have full visibility either.”
The ongoing war has also exposed longstanding structural issues within the armed forces. A Senate report published this month states that the army comprises 268,602 personnel, of whom 74,000 are deployed in combat zones. Over 36,000 are listed as inactive, including “3,618 retired soldiers awaiting $145 million in unpaid benefits.”
Meanwhile, the United Nations and several Western governments maintain that Rwanda has supplied M23 rebels with arms and troops—an accusation Kigali strongly denies. Rwanda insists its military actions are acts of self-defense in response to operations by Congo’s army and a militia formed by perpetrators of the 1994 Rwandan genocide.
