Congo is facing rising military costs and a significant tax shortfall, as a revised wartime budget reveals the strain caused by ongoing conflict with Rwandan-backed rebels. The M23 rebels have taken control of large portions of the country’s eastern borderlands, further exacerbating the country’s fiscal challenges.
The International Monetary Fund (IMF) recently highlighted the toll the war is taking on public finances, noting the closure of revenue collection offices in rebel-controlled areas and increased security spending. The revised budget, approved by President Felix Tshisekedi’s cabinet on Friday, now stands at $17.2 billion, reflecting a drop in tax revenue to 12.5% of GDP, down from 15.1% in the original budget approved in December.
The government has been forced to increase military spending, including doubling the salaries of soldiers and police, which is expected to cost $500 million this year. Exceptional security-related expenses have already totaled an estimated $1 billion in the first four months of 2025.
Despite these efforts, military officials report ongoing shortages of food, ammunition, and basic supplies, with much of the funding directed toward arms procurement, often handled outside the formal budget framework. A senior official at the finance ministry acknowledged the lack of transparency in this spending.
The ongoing conflict, particularly in the resource-rich eastern regions, is also expected to contribute to a 4% shortfall in tax revenue. The IMF projects the domestic budget deficit will widen to 1.2% of GDP this year, up from 0.8% in 2024.
Meanwhile, the military continues to struggle with internal issues. A recent Senate report revealed that out of 268,602 military personnel, more than 36,000 are inactive, and thousands of retired soldiers are awaiting unpaid benefits totaling $145 million.
While the conflict has spotlighted these financial and logistical challenges, Rwanda’s alleged support of the M23 rebels remains a point of contention, with Rwanda denying the claims and stating its military actions are in self-defense against Congo’s army and a militia linked to the 1994 Rwandan genocide.
