Finance Law of Cameroon : Senators Edified On Adjustment Reasons
- 27 juin 2019 12:45
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The modifications are geared at balancing revenue and expenditure while aligning current macroeconomic and budget framework.
Following the May 29, 2019 ordinance of the President of the Republic to amend and supplement certain provisions of the Finance Law of the Republic of Cameroon for the 2019 financial year, the Minister Delegate to the Minister of Finance, Yaouba Abdoulaye, on June 24, 2019 before the Finance and Budget Committee of the Senate presented and defended reasons for its adjustment. The bill (No 124/PJL/SEN/2L) seeks amendments which help to align with the current macroeconomic and budget framework which has modified the assumptions on the basis of which the 2019 Finance Law was prepared and to take into account the findings of the latest review of the Three-Year Economic and Financial Programme concluded with the International Monetary Fund (IMF).
Minister Yaouba Abdoulaye explained that the new assumptions have resulted in changes in mobilisation of resources, the State budget expenditure level and structure, hence reason for the modification of the Finance Law of Cameroon for this financial year. The budget revision increases the 2019 State budget from FCFA 4,850.5 billion to FCFA 5,212 billion, that is an increase of FCFA 361,5 billion which is a 7.5 per cent increase compared to what was initially projected.
Going by the explanations of the Minister Delegate, revenue is expected to increase significantly by FCFA 361.5 billion resulting from increase in oil revenue mainly due to increased production, increase in tax and non-tax revenue, increase in grants, support funds and legacies and an expected increase in loans and grants gotten partly from amongst other sources the issuing of treasury bills with a maturity of more than two years.
With regards to expenditure, Minister Yaouba Abdoulaye said many constraints faced in executing the State budget have been taken into account to ensure its smooth execution for the remaining period of the financial year. He noted that attention on expenditure will be directed mainly at reducing considerable stock of domestic arrears, increasing investment expenditure on external financing, subsidising fuel pump prices, security, increasing the allocation for pension payments, organising elections and recapitalising the Small and Medium-sized Enterprises bank.