BAMAKO (Reuters) - Mali has proposed a public spending increase of 7.5 percent in 2018, mainly to cover defence and security costs as the state tries to enforce a peace deal between northern rebels and ward off jihadist attacks, the government said on Thursday.
The West African nation expects gross domestic product to grow by 5.3 percent this year and 5 percent in 2018, the Council of Ministers said in a statement.
The 2018 budget foresees revenues of 1,957 billion CFA francs ($3.6 billion) and spending of 2,330 billion CFA francs, the statement said.
“The deficit will be financed by ... external budgetary aid and the mobilisation of savings through the debt securities issued by the treasury,” it added.
The increased budget is meant to cover military and security spending, the 2018 general elections, and costs related to the implementation of a 2015 peace deal between Tuareg rebels, the statement said.
Inflation is expected to rise to 1.8 percent in 2018 from 1 percent this year, it added.
($1 = 543.3800 CFA francs)
Reporting by Tiemoko Diallo; Writing by Nellie Peyton; Editing by Robin Pomeroy