REPUBLIC OF CAMEROON Peace – Work – Fatherland
REPUBLIC OF TAVACI MINISTERE DES FINANCES SECRETARIAT GENERAL DIVISION DE LA PREVISION CELLULE DES FINANCES PUBLIQUES
MINISTRY OF FINANCE SECRETARIAT GENERAL DEPARTMENT OF FORECASTS PUBLIC FINANCES UNIT
# BUDGETARY EXECUTION AT THE END OF JUNE 2020
During the first half of the 2020 fiscal year, the State budget was implemented within a context marked at the international level by: (i) restrictions on activities and economic disruptions caused by the COVID-19 pandemic, which broke out in China in December 2019 and quickly spread around the world, with an acceleration in contamination and deaths. During the first four months of the year, it led, among other things, to the containment of a good frank of the world population, the putting on hold of the production of many enterprises, and the breakdown of supply chains; (ii) the expected recession of the global economy due to the COVID-19 pandemic. The IMF and the World Bank have revised their forecasts for world growth downwards, with negative growth rates for 2020 estimated at -3% and -5.1% respectively; (iii) the resumption of economic activities throughout the world since May, in connection with the de-confinement decided by various governments, as well as the massive budgetary and monetary measures taken by the States to support recovery; (iv) the uncertainties hanging over the global economic outlook, in particular due to the possibility of a second wave of COVID-19 infections, the likely reorganization of supply chains to ensure access to critical goods, and the deterioration of relations between the United States and China which threatens world trade.
At the national level, the context of budget execution is marked by: (i) the holding of the twin legislative and municipal elections on 9 February 2020; (ii) the health, economic and social consequences of the COVID-19 pandemic, in particular with the increase in confirmed cases and the expected recession of the national economy. The estimated growth rate for 2020 has been revised downwards and stands at -1.1% against 4% previously; (ii) the low level of world oil prices, which are difficult to recover after the fall recorded in March 2020, and whose average price per barrel is estimated at 39.9 dollars, below the 54.4 dollars retained in the finance law, negatively affecting oil revenues; (iii) the elaboration of a comprehensive response plan against the COVID-19 pandemic aimed at controlling the health crisis and supporting economic recovery; (iv) the adoption of a budgetary collective to adjust the finance law in relation to the loss of nearly 800 billion in budgetary revenue expected in 2020, due to the COVID-19 pandemic; (v) The creation of a Special Assignment Account (SAA) endowed with 180 billion, to properly supervise the national and international solidarity that has manifested itself and the actions carried out in the context of the fight against the COVID-19 pandemic. This SAA makes it possible to centralize the resources mobilized and the expenditure carried out relating to the response to this pandemic and its induced socio-economic effects.