BURUNDI

According to the current Constitution of 7 June 2018, Burundi is an independent, united, sovereign, secular and democratic republic. The political system in Burundi is a multiparty presidential system, with the separation and mutual independence of powers. The president of the Republic is the head of state elected by direct universal suffrage for a seven-year term, renewable once (Article 97). The president is currently assisted by a vice-president. The prime minister is the head of government and is appointed by the president of the Republic. A two-chamber parliament holds the legislative power: the National Assembly and the Senate.

The 2000 Arusha Agreement provides for a system of seat distribution between the different branches of government based on ethnic and gender quotas. Each branch of government must be composed of 60% Hutus and 40% Tutsis, of which a minimum of 30% must be women.

The country is subdivided into provinces, communes, zones and hill districts (Article 3 of the Constitution). The law defines the organisation and operation of the different territorial subdivisions and may change their boundaries and number. Title XII of the Constitution on territorial authorities recognises communes as decentralised administrative entities. In addition, Organic Law 1/04 of 19 February 2020 amending certain provisions of Law 1/33 of 28 November 2014 on the organisation of the commune government stipulates that the commune is a decentralised territorial authority, with a legal personality and organic and financial autonomy. The commune administrator manages the commune under the supervision of the commune council. Commune councillors are elected for a five-year term by direct universal suffrage, according to the multi-party proportional system. The commune council elects a president and a vice-president from among its members, as well as the commune administrator. This administrator acts as mayor and is responsible for implementing the decisions of the commune council. The last local elections took place in August 2020.

In addition, Burundi adopted Law 1/18 of 8 December 2016, which ratified the African Charter on the Values and Principles of Decentralisation, Local Governance and Local Development.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
116 rural communes (Ikomine) 3 urban communes of Bujumbura
Average municipal size: 99 923 inhabitants
119			119

OVERALL DESCRIPTION: The state administrative institutions responsible for implementing the National Decentralisation Policy at the central, provincial and local levels supervise the organisation and management of the commune.

Burundi has 119 communes including 116 rural communes and the three urban communes of Bujumbura. These communes are subdivided into 575 zones and 2 908 census hill districts and neighbourhoods. Zones are deconcentrated administrative districts of the commune, between communes and census hill districts or neighbourhoods. The hill districts or neighbourhoods are administered by hill district and neighbourhood councils of five members elected by direct universal suffrage, and these members must stand as independents. The councillor with the highest number of votes becomes the head of the hill district or neighbourhood for a renewable term of five years. Of all these administrative divisions, only the communes are decentralised territorial authorities with management and budgetary autonomy.

In addition to these territorial subdivisions, the country has a deconcentrated entity, the province, which is responsible for overseeing the communes and ensuring the coherence of the commune development plans, particularly with regard to their inter-commune aspects. There are 18 provinces in total, administered by a governor, appointed by the president of the Republic, who coordinates the deconcentrated services of the central administration operating in the province. The area surrounding the city of Bujumbura forms a province, the Bujumbura Municipality (Mairie de Bujumbura) (Commune Law, Article 123). The Bujumbura Municipality is governed by a mayor, assisted by a cabinet whose members are the same as the other provincial governors (Commune Law, Article 126).

HORIZONTAL COOPERATION: With the aim of promoting the economic and social development of the communes on an individual as well as collective and solidarity basis, the Organic Law 1/04 of 19 February 2020 (article 7) establishes that the communes can cooperate through a system of inter-communal cooperation. There are around fifty of these inter-commune systems in place today in Burundi.

Organic Law 1/04 of 19 February 2020 amending certain provisions of Law 1/33 of 28 November 2014 on the organisation of the communal government states that the commune has general responsibilities relating to the local interests of the population within its jurisdiction. The commune provides and manages public services that are not the direct responsibility of the central government. The State may also delegate the management or execution of certain tasks to the communes, in accordance with the law on the transfer of responsibilities from the State to the communes, such as security (municipal police).

Furthermore, Law 1/016 of 25 May 2015 on the terms of the transfer of responsibilities - whose application decrees have not yet been issued - stipulates that the commune will contribute, together with the State, to the administration and planning of the territory, to economic, educational, social, health, cultural and scientific development, to the protection and enhancement of the environment and to the improvement of the population’s living environment. Basic education and health services are provided by the deconcentrated offices of the ministries of education and health, with contributions from the municipalities for the construction and maintenance of the infrastructure. The responsibility for road maintenance is shared between the municipalities and the central government. The national agency Regideso manages the supply of electricity and running water.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Municipal level
1. General public services (administration)	Issuance of administrative acts, civil status and identification acts, land certificates etc.
2. Public order and safety	Detachment of police assigned to the commune and establishment of order in the area (shared)
3. Economic affairs/transport	Creation of commune or inter-commune income-generating activities, construction and management of commune markets and trading centres, agreement on the establishment of communication infrastructures (shared)
4. Environmental protection	Fight against all forms of pollution and degradation of the environment and natural balance, creation and maintenance of vegetation, green spaces, development of mining sites on its territory, etc., (shared)
5. Housing and community amenities	Construction and renovation of drinking water supply, public lighting networks, urban planning, etc. (shared)
6. Health	Primary health care, preventive health, etc. (shared)
7. Culture and recreation	Sports, Libraries, Local Museums, etc. (shared)
8. Education	Pre-school, basic and vocational education, etc. (shared)
9. Social welfare	Social protection for children and young people, support services for the needy, etc. (shared)

Scope of fiscal data: communes

Statistics Directory 2020,Ministry of Interior, Community Development and Public Security

Availability of fiscal data: Low

Quality/reliability of fiscal data: Low

GENERAL INTRODUCTION: The government has adopted a handbook of administrative and financial procedures for the communes. This handbook is a tool for commune management to guide the people managing and supervising the communes. This handbook is made available to the communes; it is updated whenever the legal situation requires it.

Despite this, fiscal decentralisation in Burundi is progressing slowly. Only partial financial data on the spending of the communes exists. The level of the communes’ own sources of revenue remains low. Moreover, their potential revenues are not always fully mobilised and properly administered.

In 2021, the ministry in charge of community development organised test weeks for the collection of commune revenues, mainly aimed at combating tax evasion and corruption among tax collectors. These weeks have had some impact, leading to increased revenue levels in many communes. Nonetheless, in general, the financial capacity of communes to carry out their mandate remains limited.

Subnational government expenditure by economic classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total spending	7	0.9%	3.1%	100.0%
Current spending	3	0.4%	1.9%	42.4%
Staff spending	-	-	-	-
Intermediate consumption	-	-	-	-
Social spending	-	-	-	-
Subsidies and current transfers	-	-	-	-
Financial charges (including interest)	-	-	-	-
Other current spending	-	-	-	-
Capital spending	4	0.5%	5.8%	57.6%
Capital transfers	-	-	-	-
Direct investment (or GFCF)	-	-	-	-

EXPENDITURE: Organic Law 1/04 of 19 February 2020 provides a list of spending items at the commune level divided into two main categories: (i) operating spending and (ii) capital spending. Operating spending includes the costs of staff compensation, operating costs of municipal services, transfers to households and social welfare. Capital spending includes, among other things, the costs of maintaining the commune’s infrastructure and other costs related to the commune’s capital investments.

In 2020, the total spending of subnational governments represented 0.9% of GDP and just over 3% of total public spending. Capital spending accounted for almost 60% of the total spending of the 119 communes.

DIRECT INVESTMENT: In 2020, the investment spending of the communes accounted for 0.47% of GDP and 5.8% of public investment spending. With less than USD 4 PPP per capita, they still fall far short of covering their investment needs as defined in the commune’s community development plans.

In this context, funding for the implementation of commune development plans relies almost entirely on international technical and financial partners (of which World Vison International Burundi is a major partner). In addition, spending on the maintenance and operation of basic social infrastructure (health centres, primary and secondary schools, water supply points) is also limited, which further reduces the capacity of local authorities to provide access to social services for citizens.

Subnational government expenditure by functional classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total spending by economic function	7	0.9%	3.1%	100.0%
1. General public services (administration)	-	-	-	-
2. Defence	-	-	-	-
3. Public order and safety	-	-	-	-
4. Economic affairs/transport	-	-	-	-
5. Environmental protection	-	-	-	-
6. Housing and community amenities	-	-	-	-
7. Health	-	-	-	-
8. Recreation, culture and religion	-	-	-	-
9. Education	-	-	-	-
10. Social welfare	-	-	-	-

Expenditure is not broken down by function, but on the basis of the compulsory spending listed in Article 87 of Organic Law 1/04 of 19 February 2020 and the responsibilities assigned to the communes. The key sectors of activity for Burundian communes are: economic development (maintenance of socio-economic infrastructure and municipal roads), environmental protection (waste and wastewater treatment), health and social protection (care for sick pupils and the needy).

Subnational government revenue by category
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	8	0.9%	4.7%	100.0%
Tax revenue	4	0.5%	2.5%	50.6%
Grants and subsidies	4	0.4%	-	49.4%
Tariffs and fees	-	-	-	-
Income from assets	-	-	-	-
Other revenue	-	-	-	-

OVERALL DESCRIPTION: To carry out the various tasks assigned to them, the communes have three main sources of funding: (i) sources of revenue generated on the territory of the commune, (ii) transfers from the State and third parties (subsidies, grants, etc.) and (iii) other sources of revenue (financial income, exceptional income, external support, donations and legacies).

In 2020, commune revenues amounted to USD 8 PPP per capita, less than 5% of total government revenues. There are large disparities in the revenue collection potential between communes. A 2014 World Bank study indicated that communes in the north-eastern part of the country appeared to be the best performers in terms of revenue collection per capita. The study also highlighted the weakness of the municipal tax system in Burundi and the transfers from central government to the communes.

Another more recent study carried out in July 2021 in six communes, including two communes in the Province of Ngozi (in the North), two communes in the Province of Kirundo (in the North) and two communes in the Province of Cankuzo (in the East), shows that the rate of collection of the revenues identified is very low: this rate amounted to 43.1% on average for these six communes. In other words, these communes were “losing” on average almost 60% of the resources that they could draw on for local development.

TAX REVENUE: Law 1/02 of 3 March 2016 on the reform of communal taxation governs the tax system for subnational communities. This law regulates the taxes, fees and contributions levied for the benefit of the commune’s budget.

By this law, the communes are due around ten taxes and levies: the tax on large livestock, the tax on the sale of livestock, the tax on slaughter, the tax on bicycles and mopeds, the property tax, the tax on pylons, the flat-rate tax on business activities, the tax on industrial crops, the tax on rental income and the VAT contribution to commune development.

Article 3 of the law stipulates that ‘the communes shall establish, collect, administer and account for the taxes and levies devolved to them, with the same obligations and prerogatives as the fiscal administrations of the State’. However, this provision does not apply to VAT and, more recently, to rental income tax. The Burundi Revenue Office (OBR or Office Burundais des Recettes) collects both of these taxes.

Furthermore, most rural communes face difficulties in defining the tax base and collecting these taxes.

GRANTS AND SUBSIDIES: An adequate transfer system for current spending has not yet been established. There is no mechanism to ensure that communes receive fair and transparent transfers to cover their running costs. With regard to capital transfers, Law 1/33 introduced a financial transfer from the State to local authorities as budgetary support.

This capital grant, paid through the National Communal Investment Fund (FONIC or Fonds national d’investissement communal), aims to promote balanced development among all communes by enabling them to equip themselves with basic socio-economic infrastructure. In 2020, according to the Statistical Directory of the Ministry of the Interior, Community Development and Public Security, the total amount of allocations to the communes amounted to USD 41.34 million PPP, or just under USD 4 PPP per inhabitant. (This figure is half of that which was reported in the FONIC Budget Implementation Report for the same year: USD 98.44 million PPP, or just over USD 8 PPP per capita.)

Grants to communes were provided in four areas: (i) support for hill district co-operatives (43%), (ii) subsidies for chemical fertilisers (30%), (iii) investment in social infrastructure (14%) and (iv) shareholding by communes in the youth bank (13%).

However, these subsidies do not reach the target of transferring 15% of the national budget to the communes, as the government had planned with the creation of the National Communal Investment Fund (FONIC) in 2007.

OTHER REVENUE: No data are available.

ⓘ No detailed data available for this country

FISCAL RULES: Organic Law 1/04 of 19 February 2020 states that the commune council must submit the draft budget it has adopted to the governor of the province for approval.

The legislation also mandates regular audits of the financial accounts of local authorities. The Court of Auditors (Cour des comptes) examines and validates administrative and commune accounts. However, these checks are not regularly carried out.

DEBT: Law 1/04 of 19 February 2020 states that “the commune may, within the limits of its repayment capacity, contract loans under the conditions laid down by the law and the financial regulations” (Article 81). These loans can only be taken out to finance investments. No information is available on the debt of the communes.

TERRITORIAL MANAGEMENT OF THE CRISIS: Like other human communities around the world, the COVID-19 pandemic has affected the communes of Burundi. Although the socio-economic effects are not easily quantifiable, directly or indirectly, the health crisis has had an impact on subnational governments. The currency’s reduced purchasing power has had a negative impact on household incomes and the finances of the communes. The share of health-related spending in household and commune budgets has increased.

The mechanism for managing the COVID-19 pandemic that the communes applied was broadly the same as that which the central government adopted. The commune authorities relayed the measures contained in the National Contingency, Preparedness and Response Plan for COVID-19 and mainly conducted awareness-raising activities for the population. Some communes introduced fines for non-compliance.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: At the commune level, the urgent measures taken to address the COVID-19 pandemic were in line with those which the central government adopted. In places where many people gather (churches, trading centres, stadiums, etc.) the principal measures were: (i) compulsory wearing of masks, (ii) washing of hands as frequently as possible, (iii) provision of soap, (iv) ban on handshakes, etc.

In addition, there were some measures specific to rural communes, notably those linked to Burundian social practices, in particular the sharing of pipes used to drink traditional drinks. Faced with this source of virus transmission, the commune authorities have in most cases banned this practice. In addition, at the grassroots level, people have been advised to undergo voluntary testing.

Finally, in the major cities, the central government has taken the initiative to lower the prices of soap and water.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: The negative effects of the COVID-19 pandemic also affected communal finances. The main financial difficulties the communes faced relate to the local and national economic situation. The crisis has amplified existing problems in municipal finances, such as inadequate budgets, but it has also highlighted other challenges, such as volatile revenues, new demands for services and investments, and the short- and medium-term consequences of reallocating investment budgets to fund operational responses.

The financial problems some communes face have been exacerbated by restrictive measures taken by the central government, such as closing borders between countries, when border trade is an important source of income. As a result, in comparison with the previous year, own revenues fell by 6.5% in 2020, largely due to the effects of the pandemic.

ECONOMIC AND SOCIAL STIMULUS PLANS: The government of Burundi, through the Ministry of Public Health and the Fight against AIDS, has adopted a National Contingency Plan for preparedness and response to the COVID-19 pandemic for a renewable period of 6 months. This plan is aligned with the guidelines for dealing with the pandemic that the World Health Organisation (WHO) gave to governments.

There are three stages to the interventions to mitigate the impact of the pandemic: (i) Short-term actions (crisis response); (ii) Medium-term actions (recovery period); (iii) Long-term actions (building resilience). These affect all sectors of the country’s socio-economic life: (i) Support to the health sector, (ii) Support to the transport sector, (iii) Support to cope with climatic hazards, (iv) Support to the education sector, (v) Support to the protection of women, (vi) Support to the protection of children, (vii) Support to Water, Hygiene and Sanitation, (viii) Support to the hotel and industry sector, and (ix) Support to the informal sector.

Short-term economic measures included rent exemptions, tax breaks and cash support for businesses. Specific support has also been provided to vulnerable populations and workers in the informal sector: cash transfers, reductions in the payment for public services, price controls on certain foods and commodities.