The circular of the Minister of Finance bear instructions on the execution of finance law, the follow-up and control of the execution of the budget of the state, enterprises and public establishments, Decentralized Territorial Collectivities and other subsidized organizations for the Financial Year.
According to the document, Cameroon’s economic and financial program is anchored on growth and employment strategy which received the support of the International Monetary Fund (IMF) through an “Extended Credit Facility” (ECF) for the period 2017-2019.
The challenge of the programme is to ensure quality and rigour in budget management for the benefit of the citizen, the consolidation of Government’s credibility in order to maintain the confidence of its partners and financial markets through the respect of the commitments made.
Some major challenges of the 2018 fiscal year include the intensification of preparations for the 2019 African Cup of Nations, the continuation of the implementation of the 2017-2019 “Youth Triennial Plan” and the completion of the Emergency Triennial Plan (PLANUT) 2015-2017.
In this regard, the Minister of Finance noted that the execution of the Finance bill for the 2018 financial year should reflect the budgetary policy set by the Head of State which anchors around three main axes:
1- The increase in non-oil tax resources by broadening the tax base;
2- The control of public spending through the strict respect of parliamentary authorization, budgetary orthodoxy and regulatory measures, with the constant concern for restricting administrative expenditure;
3- Debt sustainability, though an increase of effort in quality of spending by the State, Enterprises and Public Establishments as well as Decentralized Territorial Communities (CTD).
The Finance Minister also noted that fiscal discipline must be the watchword in implementation of the 2018 budget, implying:
– The anticipation and planning of expenditure in order to guarantee consistency in the rates of expenditure and revenue on priority basis;
– Respect for the allocated budgets, limiting the financing of unforeseen expenses to exceptional situations;
– Rigorous management, drastically reducing the use of derogation procedures.
In order to give practical content to the above guidance, this Circular lays emphasis on measures that must make a visible contribution to the satisfactory implementation of the State’s fiscal policy. It is based on two pillars:
– Mobilization efforts of administrations;
– A reminder of the general principles as well as the description of the procedures and tools to which they must refer in the daily life of their activity.
In line with the relevant guidelines of the budgetary policy, the bases of the execution of the budget 2018 relate to:
– Optimizing the mobilization of resources and support for economic and social activity;
– The control of public expenditure, the search for quality for substantial savings from the administrations;
– Strengthening the contribution of programs to the performance of budget execution.
The presentation of each measure recalls the objectives, specifies the expected results and presents the modalities of its implementation.
The Finance Act for the 2018 financial year was drawn within a context marked, at the national level, by the downward trend in oil resources, the persistence of insecurity centres at certain Cameroonian borders and within the national territory, which requires a high level of availability and intervention of the defence and security forces. At the sub-regional level, the Heads of State of CEMAC, at the Extraordinary Summit of December 22 and 23, 2016, resolutely committed to act in a concerted and coherent manner in order to overcome the crisis.
The circulars urges all heads of public administrations, directors of enterprises and public establishments (EEP), executives of decentralized territorial Communities (CTD), program managers, and control bodies, to mobilize their agents to respect the objectives for 2018.
According to the enlarged revenue mobilisation plan, the rate of airport stamp duty on international flights is readjusted at a rate of twenty thousand (25,000) FCFA for the financial year 2018.
The amount of automobile stamp duty revenue allocated to Decentralized Territorial Communities is capped at seven billion (7,000,000,000) CFA francs. The additional revenue is, where appropriate, allocated to the State budget.