Preparation of RLAs budgets for the 2026 Financial year: Guidelines of the Joint Circular-Letter are known

On August 11,2025, the Minister of Decentalization  and Local Development signed a joint Circular-letter regarding the preparation of RLAs budgets for the 2026 financial year, with the aim of providing RLAS  WITH GUIDELINES ON PREPARING THEIR BUDGET. The goal is for the State to ensure compliance with current laws and regulations, as well as promote harmonious development that guarantees the well-being of the population.

If the Cameroon’s budget aims to be a socio-economic impact budget with a projected growth of around 4.5% to 5%, Regional and Local Authorities are a priority.  Indeed, the orientation is to finalize decentralization, improve the efficiency of local tax revenue collection, and strengthen the transfe of skills and resources to enhance local governance and citizen participation. The Circular-Letter on the preparation of RLA budgets, taken in application of Article 416, paragraph 2 of the General Code of RLAs, sets out practical guidelines for preparing these budgets as prescribed by the RLA budget calendar. This reference document is in line with the budget policy guidelines defined by Circular No.001 of July 18, 2025, from the President of the Republic, regarding the preparation of the State budget for the 2026 financial year, which emphasizes the need for a socio-economic impact budget focused on energy, infrastructure, employment, and strengthening decentralization.

The drafting of this text took place in a context marked by the enactment of Law No. 2024/016 of December 23, 2024, on Local Taxation, and Law No. 2024/016 of December 23, 2024 on the organisation of the civil Statuts registration system in Cameroon. Furthermore, particular emphasis was placed on the challenges faced by RLAs during the preparation of their budgets for the previous year.

Methodological Approach of the Circular-Letter

 The drafting of the Circular-Letter was carried out in two main phases: a preparatoryphase and a practical phase, articulated around the technical secretariat’s work and validation unde the coordination of the Prime Minister’s Services.

Structure

The Circular-Letter for the 2026 fiscal year of ninety-two–points (92) divided into four main parts:

• Macroeconomic Context: Discusses the international economic context, economic growth projections by the international Monetary Fund (IMF), and improvements in the oil sector at the national level. 
• Objectives of Local Public Action Focuses on promoting development and strengthening local governance.
• Practical Provisions for Budget PreparationEmphasizes strict adherence to budgetary principles for revenue and expenditure while valuing local potential.  
• Miscellaneous and Final Provisions Highlights the obligation for budget coherence and programme alignment with their respective regions.     

Main Innovations

Key innovations include:

• Positioning of State Representatives Inclusion of (Governors and Senior Divisional Officer) as recipients of the circular.
• Quota for Debt Coverage: A minimum quota of 30% for covering arrears and debts in the 2026 budget,
• Operationalization of Local Tax Centres;
• Requirement for Regional and Local Authorities must adopt Programme-based Budgeting.
• Gender-sensitive budgeting: Budgeting that takes into account the different needs and priorities of men and women.
• Budgeting for resources: Allocating resources to implement the provisions of Law No.2024/016 of December 23, 2024, on the organisation of the civil status registration system.
• Strengthening financial control: Enhancing the role of the Financial Contrller in the budget preparation process.
• Clarifying the role of tax Centres: Defining the role of the Head of the Tax Centre in budget preparation;
• Transfer of tax revenues: effective transfe of certain tax revenues to regions starting in 2026.
• Defining key concepts: Clarifying the budgetary and accounting treatment of concepts such as: DENO, Arrears, Debt, Outstanding payments ;

The Circular-Letter for 2026 emphasizes financial rigour, revenue optimization, coherence with the national development stategy, and accelerateion of the decentralization pocess.