Published on : 9/08/23 2:06 PM
Despite the difficult socio-economic situation throughout the year, the budget execution at the end of December 2022 is characterized by satisfactory results both in the mobilization of resources and in their use for the implementation of public policies.
The State execution budget shows an overall deficit balance of 307.7 billion (1.1% of GDP). This deficit fell by 316.5 billion compared to 2021. The deficit in the primary balance fell by 287.5 billion to stand at 0.4% of GDP against 1.5% in 2021. The ratio of debt service to domestic revenue fell from 33.7% in 2021 to 29.6%. The wage bill to tax revenue ratio stands at 34.7% against 38% in 2021. Since 2017, this is the first time that Cameroon has met this monitoring criterion in the CEMAC zone (ratio below 35%).
Cameroon has met all the quantitative criteria of the program with the IMF at the end of December 2022. It has met two indicative targets out of the four. Cameroon did not meet the indicative targets relating to the ceiling of direct SNH interventions and the net accumulation of domestic arrears.
The execution budget at the end of December 2022 is characterized by a satisfactory level of revenue mobilization, in particular tax revenue, which recorded a good performance. Budgetary resources were realized at 99.9% and expenditures executed at 97.3%.
With regard to domestic revenue, oil revenue and non-oil revenue have an execution rate of 120.8% and 104.4% respectively.
As for the execution of expenditure, it was overall contained within the forecast limit. However, it is also marked by a strengthening of transfers and subsidies (up by 409.8 billion compared to 2021).
By economic nature, capital expenditure represents 23.5% of authorizations, followed by personnel expenditure (21.9%) and transfers and subsidies (21.1%). Recurrent expenditure (excluding debt interest) recorded an execution rate of 108% (compared to 112.8% in 2021), capital expenditure, an execution rate of 90.1% (compared to 81.7% in 2021), and public debt service was executed at 83.3%.
However, some anomalies persist in terms of budget management. These include, among other things, pressure on expenditure (or the persistence of the phenomenon of budget overruns), the fragility of the regional security situation, the weak implementation of public finance reforms and the long payment delays (above the standard in the CEMAC zone of 60 days).
Efforts to recover resources and control operating expenses must be continued to ensure the achievement of the objectives set in the three-year economic and financial program 2021-2024. The same applies to the limitation of abusive recourse to derogatory procedures, the control of floating debt and the methods of execution of FINEX as well as the improvement of financial reporting.
