Finance Minister Explains Budget-Raising Mechanisms

The Minister of Finance, Alamine Oumane Mey on December 4, 2012 night defended how the government will raise the revenue for the 2013 draft State budget that stands at FCFA 3,236 billion as compared to FCFA 2,800 billion for 2012, recording an increase of FCFA 436 billion in absolute value and 15.6 per cent in relative value.

Alamine Ousmane Mey told the MPs that Cameroon's draft finance law of 2013 was drawn up within the background marked by the downgrading of the world economic growth rate by the international Monetary Fund, IMF, due notably to the deterioration of the economic situation of the euro zone and the slow-down of the economic activity in emerging countries. The draft budget taking into consideration national realities is tailored towards laying the foundation of making Cameroon an emerging nation by 2035. It maintains the tax halt and introduces dispositions in the tax and customs laws in order to favour economic activity and to improve on the business climate.

The State is therefore counting on internal resources estimated at FCFA 2,662 billion. Resources from the non-petroleum revenue stand at FCFA 1,957 billion, recording an increase of FCFA 234 billion compared to 2012. Tax revenue entries have moved from FCFA 1,076 in 2012 to FCFA 1,214 billion in 2013. Custom revenue increased from FCFA 550 billion in 2012 to FCFA 638 billion in 2013. Petroleum revenue is projected at FCFA 705 billion. Government also intends to raise the budget through external resources awaited that stand at FCFA 324 billion against FCFA 249 billion in 2012. Concerning loans, a bond issue of FCFA 250 billion is also envisaged, the Finance Minister said.