CIRCULAR No. 001 of 30 August 2023 relating to the preparation of the State budget for the 2024 financial year

REPUBLIC OF CAMEROON PEACE-WORK-FATHERLAND

CIRCULAR No. 001 OF 30 AOUT 2023

relating to the preparation of the State budget for the 2024 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 2024 financial year.

1. It presents the macroeconomic context, defines the objectives of public action, lays down general budget orientations as well as practical measures for preparing the State budget for the 2024 financial year.

1. The preparation of the State budget for the 2024 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 social development policy, underpinned by the 2020-2030 National Development Strategy (NDS30). It also takes into account the implementation of the post-covid-19 economic recovery plan and the Economic and Financial Programme concluded with the International Monetary Fund (IMF).

1. The preparation is placed under the banner of a socio-economic impact budget. In this connection, special emphasis should be placed on: (i) the implementation of major first-generation projects; (ii) the continuation of the preparation of major second-generation projects; (iii) strengthening social cohesion and decentralization; (v) the continuation of the implementation of plans and programmes for the reconstruction of crisis-affected regions, particularly the North-West, South-West and Far-North Regions; (vi) the continuation of the implementation of the import substitution policy; and (vii) maintaining security and health watch.

1. The preparation of the 2024 budget should continue the implementation of the activities contained in the Comprehensive Public Finance Management Reform

Plan in order to reinforce the use, preparation, presentation, execution and monitoring and evaluation of the programme budget.

# I. MACROECONOMIC CONTEXT

1. The State budget for the 2024 financial year is being prepared amid an international environment marked by gradual global economic recovery, despite lingering uncertainties notably concerning: (i) worsening climate conditions which would negatively impact agricultural output; (ii) persistent disruptions in supply channels caused by the Russia-Ukraine conflict; and (iii) the continuing depreciation of the Euro vis-à-vis the USD, resulting in higher external debt servicing and import costs.

1. In 2023 and according to prospects for the month of April, the International Monetary Fund (IMF) projects global economic growth at 2.8%, as against 3.4% in 2022. This drop is mainly explained by a generalized slowdown in most regions of the world. In the group of advanced economies, growth is expected to drop to 1.3%, after 2.7% in 2022, linked to the decline in production in the manufacturing sector and lingering inflationary pressures. In emerging and developing countries, economic activity is also expected to record a sharp drop, with growth estimated at 3.9%, as against 4.0% in 2022.