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# [MADAGASCAR] Budget Execution: 24.8% Completion Rate at Mid-Year — Government Shifts to Acceleration Mode
- URL: https://businessoi.media/en/madagascar-execution-budgetaire-24-8-de-realisation-au-premier-semestre-le-gouvernement-passe-en-mode-acceleration-en/
- Published: 2026-08-16T02:49:19.000Z
- Updated: 2026-08-16T02:49:19.000Z
- Description: Madagascar relaunches its mid-year budget review after 6 years: 24.8% execution on domestic financing, 8.84% on external. The Prime Minister demands corrective plans to accelerate infrastructure projects.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Finances publiques, Économie, Investissement, Revue matinale, #en

After a six-year pause, Madagascar relaunched its mid-year budget execution review. Results presented in early August 2026 under Prime Minister Mamitiana Rajaonarison paint a mixed picture: **24.84% execution on domestic financing** and just **8.84% on external financing**. Faced with these figures, the government has shifted into forced acceleration mode for the second half of 2026.

## First Half Raw Figures

Of the **2,026.09 billion ariary** programmed in domestically-funded investments, **503.22 billion** had been achieved at the halfway mark. Locally-funded infrastructure projects fared slightly better at 32.41% (397.58 billion out of 1,226.63 billion ariary programmed). For external financing — far larger in volume at **6,875.87 billion ariary** programmed — the execution rate stands at just 8.84%, representing 608.53 billion ariary achieved.

## Roads: The Front Line of Economic Development

Road infrastructure sits at the heart of priorities. Officials estimate that the degraded road network costs approximately **2% of GDP every year**. Conversely, quality infrastructure could boost the productive capacity of economic operators by **40%**. Roads, schools, health centres, electricity networks and water access dominate the public investment agenda.

## Obstacles Identified and Corrective Measures Required

The Prime Minister highlighted several structural bottlenecks: overly cumbersome compensation procedures for affected populations, multiple administrative controls on public procurement, and work methods in need of reform. Each ministry has been directed to submit a corrective plan with precise deadlines before the end of Q3\. Transparency and anti-corruption enforcement were also placed firmly on the agenda.

## Why It Matters

Accelerating budget execution is not merely an accounting exercise — it is the condition for promised infrastructure projects to become economic reality. For construction firms, suppliers and local subcontractors, every billion ariary unlocked represents a new order. For rural communities, it means a paved road, an electricity connection, a functioning health post. Madagascar has the resources and the plans — the challenge now is to mobilise them with discipline.