Algebraic analysis of Benin Public debt sustainability
International Journal of Development Research
Algebraic analysis of Benin Public debt sustainability
Received 14th August, 2020; Received in revised form 27th September, 2020; Accepted 26th October, 2020; Published online 30th November, 2020
Copyright © 2020, Alfred B. K. DOSSA et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The outstanding public debt of Benin on June 30, 2020 was FCFA 4,251.44 billion compared to FCFA 3, 857.97 billion on March 31, 2020 (CAA, 2020). The corresponding indebtedness ratios are 43.9% (1st term of 2020) and 48.4% (2nd term of 2020). Such indebtedness progress deserves an analysis of Benin public debt sustainability. The aim of this study is to carry on the algebraic analysis of Benin public debt sustainability. This approach is based on the control of indebtedness ratio through intertemporal budgetary constraint. The algebraic estimate in the programming software R showed that Benin can reduce its indebtedness ratio by 40% in the medium term with considerable budgetary efforts.
