Fiscal Sustainability and Macroeconomic Stability in the Democratic Republic of Congo

Taking support on literature, this paper discusses on public finances sustainability in DRC and their effect on macroeconomic stability since 1980 to 2019. Cointegration test and VAR model were solicited for this purpose and lead to establish that in DRC, budgetary policy is more oriented to short run term then middle and long run term, with limited capacities of manipulation. This nonsustainability has affected budgetary choices quality regarding the fact that public deficit are systematic, expenditures are less aligned to revenues, and budgetary policy is not contra-cyclical. The analysis shows that expenditures shocks have limited effects on revenues and revenues shocks have important effect on expenditures. This implies important and persistent fluctuations till 7th year. Absence of discipline involve crowding out effect and reallocation in disfavor of capital and social expenditures. The paper suggests to define and to observe budgetary rules for public finances sustainability, macroeconomic stability, and best‘s economic growth perspectives