abstract

Theme : Analysis of the dynamics of the wage bill on tax revenues in Burkina Faso
Abstract
The ratio of wage bill on tax revenue is one of WAEMU's convergence criteria which fixed
standard is 35%. Respecting this standard is in line with economic approaches because wage
bills or tax revenues influence the development of every country. Informed by this link
between wage bill or tax revenue and development, each WAEMU country strives to
implement policies that keep them up with WAEMU’s fix standard. Unfortunately, in some
countries, there are social challenges to efforts toward this standard because of the working
conditions of public servants and workers’ continued request for pay raise. Burkina Faso is
experiencing these challenges and barely keep up with WAEMU’s ratio. This study, entitled
“Analysis of the dynamics of the wage bill on tax revenues in Burkina Faso,” is inspired by
the current situation of Burkina Faso. This study analyses the wage bill on tax revenues in
Burkina Faso at a time of social demands and the unemployment of young graduates. For this
purpose, a linear regression from Eviews.8 software was used to explain the ratio by different
variables among which the number of civil servants, the average salary per civil servant and
Taxes on goods and services. Findings of this economic simulation allows us to predict a
ratio of 66.15% in Burkina Faso which means keeping up with WAEMU’s indicator by 2019
is a utopia for Burkina Faso. With regards to these findings, though theoretical, it is crucial
for actors involved in the computing of the ratio to reflect on the method of computing and
consider social stability as a prerequisite for economic stability. Respect for the ratio also
includes taking population issues into account in development and recruitment policies,
promoting the private sector and developing effective taxe revenue mobilization strategies.
Key words: wage bill ratio/ tax revenue / convergence / Burkina Faso.