The territorialization of public spending is gaining momentum in the 2026 Rectificative Finance Law. According to the Ministry of Economy and Finance, more than 3.2 trillion ariary is being directed toward the territories.
Bringing the budget closer to the realities on the ground is a key objective of the 2026 Rectificative Finance Law. In a statement released yesterday, the Ministry noted that 12% of state budgets, totaling 3.2 trillion ariary, is allocated to territorial structures and Decentralized Territorial Collectivities (CTD). The goal is to increase decision-making and investment autonomy at the local level.
Beyond the amount of funds transferred, the Ministry emphasizes the need to improve how spending is programmed and executed. Budgetary conferences were held across the country’s 24 regions to align decisions with local priorities. This initiative is being strengthened for the preparation of the 2027 Finance Bill to ensure coherence between expenditure planning and territorial needs.
The Ministry also highlights the improvement of public services through the creation of over 13,200 civil service positions, including 9,000 in the education sector. This policy is supported by efforts to mobilize domestic revenue, which reached 3.99 trillion ariary between January 1 and September 16, compared to 3.586 trillion during the same period last year, thanks to an expanded tax base.
However, as noted by members of Parliament, the complexity of public fund disbursement procedures continues to delay state and local actions, leading to low budget execution rates. Prime Minister Mamitiana Rajaonarison has acknowledged this flaw and committed to addressing it.
Captured & Published at: 2026-09-21 06:08:49 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/09/loi-de-finances-le-budget-favorise-les.html
