Growth acceleration, job creation, strengthened competitiveness and improvement of the livelihoods of Cameroonians are primary in the August 13, 2015 circular.

Cameroon will in 2016 enter the optimisation phase of the result-based management budget that went fully operational on January 1, 2013. Government’s priorities for the second triennium (2016-2018) are due to focus on major reforms. To this effect, President Paul Biya, has given guidelines for the preparation of the 2016 State budget. The executive guidelines are contained in an August 13, 2015 circular.

The presidential instruction plays emphasis on the macroeconomic context within which the budget is being prepared. It also hinges on government objectives. Behind it lies the commitment to align to the country’s long-term growth objectives contained in the Growth and Employment Strategy Paper (GESP) whereby government seeks the acceleration of economic growth, creation of jobs, strengthening of competitiveness and improvement of the livelihoods of Cameroonians as major priorities. Consideration is also given to the three-year emergency plan, besides insecurity in some border towns.

The Macroeconomic Context

The preparation of the 2016 State budget is coming at a time the economies of emerging and developing countries are expected to slowdown according to International Monetary Fund projections. This is attributed to lower commodity prices, especially oil, strong fluctuations in exchange rates and the recurrence of insecurity in some African countries. Growth estimates are stagnating with the IMF projecting 4.7 per cent in 2016 against 4.3 in 2015 and 4.6 in 2014. The drop in oil prices (represented 48 per cent of exports in 2014) and raw materials, the war against Boko Haram and insecurity at the borders; are national threats to balance of payments.

The operationalisation of first generation infrastructure projects with the Lom Pangar Hydro Electricity Dam as premier is expected to bridge the energy gap and improve livelihoods. Inflation rate in the first half of 2015 was 3.4 per cent as against 1.9 per cent in 2014. The wish is that it should not outdo the community standard of 3 per cent. Government efforts are in place to watch out for this.

Set Objectives

Government’s intent is multifaceted. Top on the agenda is to accelerate economic growth, make it strong, sustainable, inclusive and promote job creation. This is expected to run through the modernization of the production process, the improvement of productivity, competitiveness, access to finance. Strengthening the business climate, promoting the emergence of local industries and the continued diversification of the economy with openness to the country’s business partners are also of great priority.

The completion of first generation major infrastructure projects, the speeding up of preparations for such projects counting for the second generation projects, the compliance to the implementation calendar of programmed projects, the acceleration of the implementation of the emergency plan and infrastructure in view of the 2016 and 2019 Africa Cup of Nations are many of the objectives to be taken into account as stakeholders prepare the 2016 State budget.