Circular No. 001 /CAB/PRC of 23 August 2022 relating to the preparation of the State budget for the 2023 financial year

REPUBLIC OF CAMEROON PEACE - WORK - FATHERLAND

CIRCULAR No. 001 /CAB/PRC OF 23 AOUT 2022 relating to the preparation of the State budget for the 2023 financial year

# THE PRESIDENT OF THE REPUBLIC,

TO

• THE PRIME MINISTER, HEAD OF GOVERNMENT;
• MINISTERS OF STATE;
• MINISTERS;
• MINISTERS DELEGATE;
• REGIONAL GOVERNORS.

1. This circular concerns the preparation of the State budget for the 2023 financial year.

1. It presents the macroeconomic context, defines the objectives of public action, lays down general budget policy orientations as well as practical measures for preparing the State budget for the 2023 financial year.

1. While taking into account the global and local macroeconomic context, the preparation of the State budget for the 2023 financial year fall within the framework of the implementation of the Nation's economic, social and cultural development policy, underpinned by the 2020-2030 National Development Strategy (SND30) which operationalizes the second phase of Vision 2035. It also takes into account efforts to combat the negative effects induced by the war in Ukraine on the national economy and the continuation of the implementation of the post-COVID-19 economic recovery plan, as well as the prior measures and structural benchmarks of the new Economic and Financial Programme concluded with the International Monetary Fund (IMF).

1. Specifically, it lays special emphasis on: (i) finalization and commissioning of the remaining major first-generation projects; (ii) continuation of the preparation of major second-generation projects; (iii) strengthening of social cohesion and decentralization; (iv) continuation of the implementation of the import substitution policy through the actions aimed at boosting local production and reducing dependence on imports; (v) continuation of the reconstruction of crisis-affected regions, particularly the North-West; South-West and Far-North; and (vi) maintaining security and health monitoring.

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1. The preparation of the budget for the 2023 financial year should build on the activities contained in the Comprehensive Public Finance Management Reform Plan in order to reinforce the use, preparation, presentation, execution, monitoring and evaluation of the programme budget.

I. MACROECONOMIC CONTEXT

1. The State budget for the 2023 financial year is being prepared amid an international environment marked by a slowdown in the global economy as a result of the Russia-Ukraine conflict, with negative consequences for market supply and an increase in product prices.

1. According to the International Monetary Fund (IMF), the global economy will grow by 3.6% in 2022, compared with 6.1% in 2021. Growth in advanced economies is expected to slow to 3.3% in 2021, down from 5.2% in 2021, due to higher energy prices, unfavourable financial conditions and supply chain disruptions. This trend will also be visible in the group of emerging and developing countries where growth is expected to decrease from 6.8% in 2021 to 3.8% in 2022.