Kinshasa: The Democratic Republic of Congo is grappling with escalating military expenditures and a significant decline in tax revenues, as ongoing clashes with Rwandan-backed M23 rebels intensify in the eastern regions.

President Felix Tshisekedi's cabinet has approved a revised wartime budget, reducing overall spending to $17.2 billion. The adjustment reflects a drop in projected tax revenues from 15.1% to 12.5% of GDP, attributed to the closure of revenue collection offices in rebel-controlled areas.

The International Monetary Fund has highlighted the strain on Congo's public finances, noting approximately $1 billion in exceptional security-related expenditures during the first four months of 2025. In an effort to boost morale among troops, the government doubled salaries for soldiers and police, incurring an additional $500 million in costs.

Despite increased funding, the military reports ongoing shortages of essential supplies, with many expenditures occurring outside the official budget framework. The army comprises over 268,000 personnel, including more than 36,000 inactive members, some of whom are owed $145 million in benefits.

The conflict in the mineral-rich eastern Congo continues to exacerbate fiscal pressures, underscoring systemic inefficiencies within the military and the broader economic challenges facing the nation.