Announced Budget Hike: Multifaceted challenges, indispensable precautions

The Minister of Finance disclosed during the October 29, 2015 Cabinet Meeting that the preliminary draft budget for fiscal year 2016, which will be submitted for the arbitration of the President of the Republic, is balanced in receipts and expenditure at FCFA 4,249.8 billion, against FCFA 3,746.6 billion in 2015.

The announcement comes at a time when the growth of the economy, like others in the Central African Subregion, hangs in the balance. Macroeconomic forecasts put regional growth rate at 2.5 per cent in 2015, down from 4.6 per cent in 2014.

Although the International Monetary Fund praises the resilience of the economy of Cameroon that raised growth to almost 6 per cent in 2014 as against 5.6 in 2013, government has admitted weaknesses, urging tighter budgetary discipline.

The reasons advanced for this budgetary hike, are that government has to finance the recurrent expenses of the State, but above all, guarantee the completion of first-generation projects and those listed in the three-year Contingency Plan for fast-tracking growth.

But very important is the challenges of hosting the 2016 and 2019 football African Cup of Nations competitions. The implementation of the 2015-2030 Sustainable Development Goals, starting second-generation projects, surmounting security challenges and facing the shocks of the drop in oil prices, are issues that are begging for more attention from government.