1. The main revenues of the State

The revenue forecast in the 2019 budget is CFAF 3,608.5 billion. They are distributed as follows:

2. The main expenses of the State ?

The revenue forecast in the 2019 budget is CFAF 4850.5 billion.  The following table shows the expenditures planned in the 2019 budget according to the 10 sectors of the State defined by the Finance Act:

	THE EXPENSES (in billions of FCFA)
SECTORS	2017	2018	2019
SOUVERAINETY	214,3	212,4	244,8
DEFENSE AND SECURITY	369,9	370.6	410.7
GENERAL AND FINANCIAL ADMINISTRATION	600,4	700,0	631,1
TEACHING, TRAINING AND RESEARCH	682.5	716.9	740.3
COMMUNICATION, CULTURE, SPORTS AND LEISURE	177,5	174,2	110,5
HEALTH	219.4	187,0	213.6
SOCIAL AFFAIRS	18.2	21.4	25.8
INFRASTRUCTURES	891,8	644.8	884,5
PRODUCTION AND TRADE	230,8	204,2	293.1
ACTIVITIES NOT REPAIRED BY FUNCTIONS	969,2	1457.9	1 296.1
TOTAL	4 373 ,8	4689,5	4 850.5

There is another way to present expenses, depending on the nature of the expense. There are 3 main masses of expenditure:

The 3 large masses (in billions of CFAF) are broken down according to the following table:

Current expenditure 2,465.5	Personnel expenses 1,273.3
	Goods and services 919.1
	Grants and contributions 273.1
Capital (or capital) expenditures 1,327.6	External financing 617.0
	Domestic funding 710.6
Debt service 1,057.4	External debt service 461.0
	Domestic debt service 596.4

– BOX : The evolution of debt service

• Source : MINFI data

3. The budget balance: deficit or surplus?

The budget balance in Cameroon is calculated as follows:

The expenditures forecast in the 2019 budget are greater than the projected revenues. The budget balance is therefore negative or in deficit.

4. How does the State finance the budget deficit?

The government finances the budget deficit through borrowing. However, government borrowing does not only finance the budget deficit; it also finances (i) debt repayment, (ii) the repayment of VAT credits and others. In the 2019 budget, the financing needs of the Cameroonian State amount to CFAF 1,342 billion: .

5. What weight for decentralization?

Since the adoption of the decentralization law, the Cameroonian State has committed itself to strengthening local authorities by increasing the resources transferred to them. The table below shows the evolution of transfers to Decentralised Territorial Communities:

• Source : MINFI data

STATE BUDGET	The budget describes, for a year, all the expected revenues and expenses of the State.
CLASSIFICATION ADMINISTRATIVE DES Expenses	When the expenditure provided for in the budget is classified according to the various departments receiving appropriations (Ministry, Directorate…).
CLASSIFICATION ECONOMICAL OF Expenses	When the expenses provided for in the budget are classified according to their economic nature (salary, electricity, transport costs, road construction, etc.)
CLASSIFICATION FUNCTIONALS OF Expenses	When the expenditure provided for in the budget is classified according to the different functions performed by the State (general and financial administration, defence and security, education and training, provision of infrastructure…)
PROGRAMME	It is a coherent set of actions under the same ministry with specific objectives, defined according to general interest purposes, as well as expected and evaluated results.
COMPETITIVITY	It is the ability of an economic sector, a territory (country, region…), a company, to sell and provide sustainably one or more goods at prices lower than those of competitors and of better quality.
ECONOMIC GROWTH	It represents an increase, over a given period, in the quantities of goods and services produced in a country. It is measured by the annual change in the Gross Domestic Product (GDP) indicator.
BUDGETARY DEFICIT	When the difference between total revenue excluding borrowing and total expenditure is negative. (Otherwise, it is referred to as a budget surplus)
CURRENT EXPENSES (also called EXPENSES FUNCTIONAL)	All kinds of expenses that allow the State to function (salaries of civil servants, office supplies, fuel, mission expenses, rental of buildings to house public services, computers, water, electricity, telephone, internet…)

Expenses INVESTMENT (also called EXPENSES EN CAPITAL)	Expenditure on real estate that enriches the country’s heritage (roads, public spaces, rail networks, etc.)
DETTE	Funds borrowed by the State to cover the budget deficit and other financing needs.
DON	A grant of financial assistance granted to the State to implement a development project.
BUDGET ENDOWNINGS	All sums allocated to an administration or a public institution in the finance law.
INFLATION	It refers to a sustainable, general, self-sustaining increase in the prices of goods and services.
FINANCIAL LAW	The Finance Act is a document passed by Parliament that determines the rules for managing state money. This law provides for and evaluates all revenues and expenses for a year, and authorizes their execution.
DEBT SERVICE	The amount that the borrowing State must pay each year to repay its debt. It includes principal and interest.
BUDGET BALANCE	The difference between total revenue excluding borrowing and total expenditure provided for in the State budget.
TRANSFERT CURRENT	State financial assistance to structures with managerial autonomy (State Company, local authority, social partners, political parties, etc.) for the implementation of their actions.
TRANSFERT CAPITAL	A public subsidy paid to a structure to complete the financing of its investments (company in difficulty) or for the acquisition of assets.
MINFI	Ministry of Finance
MINEPAT	Ministry of Economy, Planning and Spatial Planning

The preparation of the budget in Cameroon is done in three phases:

The 2019 Budget Preparation Schedule

N°		LARGE STEPS OF THE BUDGET		DELAYS
1		The Presidency of the Republic publishes the budget preparation circular		30 June
2		which is the forum for the validation of medium-term expenditure frameworks prepared by sectoral ministerial departments		7 July
3		pre-conferences budget that allow sectoral ministries to present their financing needs and programmes ;		27 July
4		The Interdepartmental Program Review Committee (IPRTC) reviews and validates programs proposed by departments without going into financial details ;		17 August
5		31 August
6				21 September
7		Preparation of the finance bill and transmission to the Prime Minister’s Office ;		1er October
8		The Prime Minister’s Office transmits the bill with the latest arbitrations to the Presidency of the Republic ;		8 October
9		The Presidency of the Republic tables the draft finance bill and its appendices to the National Assembly (in parliament, as the budget is discussed and voted in both chambers: the National Assembly and the Senate) ;		15 October
10		Parliament examines and votes on the Finance Act ;		November
11		The President of the Republic promotes the Finance Act.		December

 

1. Economic growth

• Source : World Bank data

2. Inflation

• Source : International Monetary Fund data
• Remark : The figures for the years 2018 and 2019 are estimates

3. Recipes

• Source : MINFI data

4. Expenditures

• Source : MINFI data

5. Debt

• Source : International Monetary Fund data
• Remark : The figures for 2017 and 2018 are estimates

1. What are the economic assumptions used to calculate the 2019 budget?

The economic assumptions in the budget reflect the government’s expectations in terms of growth, inflation, revenue and other factors. They are based on statistical calculations and estimates.

2. What are the objectives of the 2019 budget?
The State budget is used to finance and achieve specific objectives;

For the year 2019 the objectives are:

At the economic level	At the social level	At the level of state governance
– Improving the energy sector – Helping companies to improve their competitiveness – Support the development of local industries – Support agriculture, livestock, and agriculture-based industry – Help small and medium-sized enterprises to find financing for their activities	– Improving access to social services – Strengthen civic education and language teaching – Promoting the culture of living together – Protect the most vulnerable people (i.e. help them find work and provide them with vocational training sessions and other actions)	– Improve government management and performance – Use public money more efficiently- Improve revenue collection- Limiting the State’s indebtedness- Reduce the budget deficit

3. What are the guidelines for state revenues?

In order for the State to achieve its objectives, it seeks to maximize its revenues. To this end, each year the government adopts measures to increase its capacity to collect revenue.

For the year 2019, the main orientations are:

Expand the tax base	This will allow the State to increase its revenues from taxes
Secure recipes	This will enable the State to ensure that the revenue provided for in the budget will be collected and available
Fight against fraud and tax evasion	This will allow the State to prevent individuals and companies from evading the payment of taxes and duties
Improve the business climate	This will attract and create new businesses that will generate taxable activities and income. So even more revenue for the State
Socio-economic promotion	Mostly tax incentives to encourage young people, vulnerable people and businesses to work.

4. What are the spending trends?

The State also seeks to avoid the waste of public money by following guidelines to ensure that its expenditures are effective.

• Reducing the budget deficit ;
• Rationalize government spending by reducing its lifestyle.

Hydroelectric powerHydroelectric powerenergy

N°	Project title	Objective	Project cost and Financing	Implementation status
1	Lom Pangar Hydroelectric Power Plant	Produce 30 MW of energy	Billions	The impoundment was carried out in 2016. Work on a 30 Mw hydroelectric power plant is in progress. Commissioning is scheduled for July 2019.
2	Dam Memve’ele	Increase the offer of energy from 211Mw	Billions	The dam and power plant works are fully completed. Partial commissioning is effective. The full commissioning of the project is linked to the completion of the energy evacuation line, including the execution is 65%
3	Dam Mekin	Increase energy supply by 15 Mw	Billions	The construction of the dam is completed and the water level is effective. Commissioning is imminent.
4	Hydroelectric dam from Birni to Warak	Increase the offer of 75Mw	Billions	The access roads to the sites have been built. The work must be completed in 48 months, with delivery expected by 2021-2022.
5	Second Bridge over Wouri	Fluidify trade in the city of Douala by reducing traffic on the 1st bridge	Billions	Partial provisional acceptance took place on 31 May 2018. The full commissioning of the project is scheduled for the end of 2018.
6	Facility of the East and East entrances West of the city Douala	Sanitize and relieve congestion entries and exits from the economic capital	Billions	The eastern entrance to Douala is already completed and traffic is open. The West Entrance project was received on September 28, 2018. Work on lighting and signalling is nearing completion.

 

N°

Project title

Objective

Cost of the project and Financing

Implementation status

7	Highway Yaoundé- Nsimalen (open field section)	Setting up a traffic lane fast from the Airport to the city centre	39.8 Billion	Over 85% of the work is carried out. They will be completed before June 2019.
8	Highway Yaoundé-Douala (1st phase Yaoundé–Bibodi)	Setting up a traffic lane fast between the two capitals	280 Billion	The work is about 64% complete.
9	Complex industrialo port of Kribi (26,000 hectares, or 260 km²)	Allowing the docking of deep-draught vessels; and promote the development of industrial and mining projects (iron, aluminium, alumina, liquefied natural gas)	Phase 1: 285 Billion	Ships and container carriers have already been received by the port. Traffic started in March 2018
10	Power Supply Project Yaoundé and its surroundings in water Drinkable from the Sanaga (PAEPYS)	Improve the supply and quality of public services of water in the city of Yaoundé and its surroundings.	588.89 Billion	At this date, the work is about 30% complete. Their completion is expected by December 2019.

• Source : MINEPAT data