The ratings on Burkina Faso are constrained by a low level of economic development, with GDP per capita among the lowest of rated sovereigns, estimated at $520 in 2007; and weak human development indicators. The economy is narrow, with a large informal sector and heavy dependence on cotton cultivation. The ratings are also constrained by the lack of fiscal flexibility, owing to the low level of government revenues. These are projected at only 12.8% (excluding grants) of GDP in 2007, notably reflecting the narrow tax base. The tight context on the revenue side, coupled with higher expenditures--partly one-off--has translated into widening general government deficits in 2006 and 2007. The deficit is expected at 6.2% of GDP (including grants) in 2007,
