Philemon Yang asked the Minister of Finance, in conjunction with the Minister of Economy, to expedite the budget preparation process for the year 2018, in accordance with the relevant presidential instructions, and to closely monitor the implementation of the reform program recently concluded with the IMF.
The statement released at the close of the Cabinet meeting held yesterday.
“Under the effective presidency of the Prime Minister, Head of Government, Mr. Philemon Yang, was held on Thursday, June 29, 2017, at 9:00 am at the main building housing his Services, a Cabinet meeting devoted to the budgetary policy debate for the fiscal 2018 year. Ministers of State, Ministers, Deputy Ministers and Secretaries of State attended.
Two themes were on the agenda:
- A statement by the Minister of State for the Ministry of the Economy, Planning and Regional Development, in charge of planning on the strategic orientations of the public investment budget for the 2018 financial year;
- A statement by the Minister of Finance on “the operating budget profile for the 2018 fiscal year “.
Speaking after the introductory words of the Head of Government, the Minister Delegate to the Minister of Economy first presented the macroeconomic context for the preparation of the public investment budget (PIB) for the 2018 financial year. He said that the development of the 2018 PIB is part of the expansion of Cameroon’s development policy underpinned by the Growth and Jobs Strategy Paper.
This approach is also consistent with the program of economic and financial reforms concluded on 26 June 2017 with the International Monetary Fund (IMF). He pointed out that despite the fragile economic situation in the countries of the subregion due to the double oil and security shock, growth prospects at the national level are rather favorable.
The rate of inflation should not exceed the Community standard of 3, due to price control and improved terms of trade. Specifically referring to the main orientations of the 2018 PIB, the Minister delegated to the Minister of the Economy stated that they derive from the directives of the Head of State, contained in the Circular of 20 June 2017 on the preparation of the budget for the 2018 financial year.
Sustained attention will be
- the completion of the projects of the Three-Year Contingency Plan for Accelerating Economic Growth;
- intensified preparations for the Africa Football Cup of Nations 2019;
- the operationalization of the three-year “Special Youth” Plan and
- supervision of the populations of the regions affected by cross-border insecurity. To ensure the effectiveness of these actions and optimize public investment in a constrained environment, four categories of measures will be implemented.
- The strengthening of the PIB’s preparatory mechanism by setting up new forums for exchanges such as the extended programming conferences;
- improving the efficiency of public investment, favoring the completion and start-up of first generation structuring projects in the course of implementation;
- stimulating the economy through, inter alia, the identification of new growth channels and support for industrial units;
- And finally improving the process of project selection and maturation.
Finally, the Minister delegated to the Minister of the Economy has built up the Council on the measures taken and envisaged to improve the implementation of the PIB in 2018.
Following this presentation, the Minister of Finance immediately indicated that the budgetary debate foreshadows a new approach to the preparation of the State budget, which will be devoted to the completion of the process of transposition of the budget relative to Community directives on public financial management. This debate aims to improve budgetary viability and transparency, by strengthening parliamentary oversight powers.
The Minister of Finance then announced that the preparation of the operating budget for 2018 fiscal year is guided by a series of measures in the areas of fiscal policy, structural reforms and state treasury management.
In relation to fiscal policy, it is planned, inter alia, to reinforce operations to clean up the state balance file; The rationalization of missions and current consumption expenditure (water, electricity and telephone); The judicious budgeting of subsidies to the Public Administrative Institutions on the basis of their performance; The revision of the price mercurial.
As regards the structural measures envisaged, they concern the drawing up of nomenclatures of investment and operational activities; The acceleration of the implementation of the second generation of the integrated system for the computerized management of government personnel and pay (SIGIPES II); The reorganization of the roster of State contributions in international organizations; The taking into account of performance in plan contracts and the introduction of cost accounting of program costs, with the aim of improving parliamentary information.
As regards cash management, the Minister of Finance stressed that the emphasis will be on strengthening fiscal and financial discipline through the rational use of the Treasury Plan and the systematic Budgetary commitment, in strict accordance with the quotas adopted.
At the end of the debate following the presentations, the Prime Minister clarified that the preparation of the budget must be more rigorous in order to meet the many challenges facing our country in 2018. He asked the Minister of Finance, The Minister of Economy, to accelerate the budget preparation process for the year 2018, in accordance with the relevant presidential instructions, and closely monitor the implementation of the reform program recently concluded with the IMF.
The Council ended at 11.15 am, after a briefing by the Minister delegate for the Presidency of the Republic in charge of Defense. “
Yaounde, 29 July 2017
The Secretary General of the Prime Minister’s Office,
(E) Séraphin Magloire FOUDA