CIRCULAR No. 1/CAB/PRC OF 10 JULY 2020 relating to the preparation of the State budget for the 2021 financial year

REPUBLIC OF CAMEROON

PEACE-WORK-FATHERLAND

# CIRCULAR No. 1/CAB/PRC OF 10 JULY 2020 relating to the preparation of the State budget for the 2021 financial year

# THE PRESIDENT OF THE REPUBLIC

TO

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

!img-0.jpeg

This circular lays down the general budget policy guidelines as well as practical measures for drawing up the State budget for the 2021 financial year.

The preparation of the State budget for the 2021 financial year is a continuation of the implementation of the COVID-19 Pandemic Response Plan in order to mitigate its socio-economic impacts and facilitate post-health crisis recovery and the implementation of the initial reforms of the Nation’s economic, social and cultural development policy underpinned by the National Development Strategy which operationalizes the second phase of the 2035 Development Vision.

Globally, the preparation of the State budget should aim to: (i) strengthen socio-economic prospects so as to build the country’s resilience to exogenous shocks; and (ii) strengthen social cohesion and decentralization. It should trigger the implementation of the new National Development Strategy and consolidate the achievements of the Economic and Financial Programme (EFP) concluded with the International Monetary Fund (IMF), as well as those of the programmes implemented with other technical and financial partners to kick-start our economy following the slowdown in 2020 due to the coronavirus crisis.

Thus, special emphasis should be laid on the implementation of the COVID-19 Pandemic Response Plan to mitigate its adverse effects on the well-being of the population and Cameroon’s economic fabric, the implementation of the national book and textbook policy, the effective start-up of universal health coverage (UHC), the implementation of the plan for the reconstruction of crisis-affected regions, particularly the North-West and South-West, and the organization of the Africa Cup of Nations (AFCON) 2022.

The preparation of the 2021 Budget should take into account the activities contained in the 2019-2021 Public Finance Management Global Reform Plan in order to strengthen the preparation, presentation, execution and monitoring and evaluation of the programme budget.

I. MACROECONOMIC CONTEXT

1. The State budget for the 2021 financial year is being prepared amid an international environment marked by great uncertainties regarding global supply and demand due to the coronavirus pandemic (COVID-19). The collapse of crude oil prices, volatile financial market and deteriorating terms of trade are some of the shocks that are expected to lead to economic recession in many countries.

1. According to the IMF, the global economy is expected to decline to -3% compared with an estimated growth rate of 2.9% in 2019. This contraction is due mainly to the economic consequences of the health crisis whose spread and related containment measures paralyze economic activity.