CIRCULAR No. 001 OF 23 OCT 2024 relating to the preparation of the State budget for the 2025 financial year

REPUBLIC OF CAMEROON PEACE-WORK-FATHERLAND

CIRCULAR No. 001 OF 23 OCT 2024 relating to the preparation of the State budget for the 2025 financial year

# THE PRESIDENT OF THE REPUBLIC,

TO

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

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1. This circular concerns the preparation of the State budget for the 2025 financial year.

1. It presents the macroeconomic context, defines the objectives of public action, lays down general budget guidelines as well as practical measures for preparing the State budget for the 2025 financial year.

1. The preparation of the State budget for the 2025 financial year takes into account the global and local macroeconomic context, and falls within the framework of the continued implementation of the Nation’s economic, social and cultural development policy, underpinned by the 2020-2030 National Development Strategy (NDS30). It also pursues the implementation of economic and financial programmes (EFPs) concluded with the International Monetary Fund (IMF).

1. The preparation is under the banner of a socio-economic impact budget. In this connection, special emphasis should be placed on: (i) increased energy supply to industries and households; (ii) opening up of production basins; (iii) increased local supply of essential goods and agro-industry inputs; (iv) increased financial support to the industrial sector; (v) continued improvement of peoples’ access to quality healthcare; (vi) continued support and the preservation of

vulnerable households' purchasing power; (vii) speeding up the decentralization process; (viii) continuation of nationwide security surveillance and implementation of the presidential plan for the reconstruction and development of the security crisis-affected areas, in particular the North-West, South-West and Far-North Regions.

1. The preparation of the 2025 Budget should consolidate the implementation of the programme-based budget, regarding its preparation, presentation, execution and monitoring-evaluation.

I. MACROECONOMIC CONTEXT

1. On the international scene, the State budget for the 2025 financial year is being prepared amid an environment marked by a difficult recovery in the global economy, notably relating to: (i) the persistent armed conflicts in Ukraine and the Middle East; (ii) the continued policy of tighter financial conditions, in particular the maintenance of high interest rates; (iii) increased geo-economic fragmentation, with consequences for trade and capital movements; (iv) worsening weather conditions, which are adversely affecting agricultural yields; (v) persistent inflationary pressures, despite the observed deceleration.

1. In its July 2024 Global Economic Outlook, the International Monetary Fund (IMF) forecasts that the world economy will grow by 3.2% in 2024, after 3.3% in 2023. Trends vary according to the major economic groupings: growth is set to remain at 1.7% in advanced countries, while in emerging and developing countries it is set to decelerate from 4.4% in 2023 to 4.3% in 2024.