Cameroon’s state budget for the year 2020 has dropped by 542.6 from the initial 4951.7 billion FCFA voted in November 2019 to 4409 billion CFAF.
The reduction of the state budget is contained in a Presidential Ordinance which modifies certain provision of the 2019 finance law.
It was signed by President Paul Biya on Wednesday, June 4, 2020.
The presidential ordinance that reduced the state budget by 11 percent modified and completed ten session of the 2020 finance law.
The reduction of the state budgets comes as a result of a drop in revenue mobilisation prompted by the global ravaging effects of the Novel Corona Virus Pandemic (COVID19).
Officials from the Ministry of Finance points to recessions stemming from the COVID19 pandemic that has led to domestic revenue losses estimated at 775 billion CFA francs.
According to the ordinance, the fight against the corona virus pandemic is at the core of government expenses with the creation of a Special Fund with a threshold of 180 billion CFAF.
The Special Fund will cover sanitary expenses related to the tracing of Covid19 cases and the provision of care, vulnerable persons affected by the public health crisis especially those living below the poverty line and street children.
It will also research funding and aid to enterprises whose activities have been affected by the pandemic.
Some sector that the state counted on the raise funds for the public treasury have also witnessed slowdowns; oil and physical revenue have witnessed a drop in their projections for 2020.
The state is looking forward to budgetary assistance as well as more loans and grants from multilateral and bilateral partners to meet up with its socioeconomic and financial objectives for the year.
The ordinance also gives exemptions in taxes and custom duties to importers bringing in materials for the fight against Covid19 into the country. In the same light, interests on late payments have also been suspended.