France hails Cameroon’s financial sector reforms.

He represented the French Minister of Finance at the first session of Cameroon’s Financial Governance Support Project, which held on Friday June 14 in Yaounde. 

Tourtois announced that the Cameroon government attained 95% level of achievement when it comes to implementing reforms that aim at cleaning the public accounting system so that it serves the purpose of moving the economy forward, for the benefit of the population.

Specifically, he said government had introduced reforms that are strengthening state budget credibility, improving cash management and budget regulation. 

“The implementation of the single treasury account, CUT, will make it possible to consolidate the funds of public entities and thus optimise management of the state´s cash position in order to better meet payment deadlines. At the same time, budgetary regulation will be optimized through the implementation of commitment plans and revamped budgetary accounting,” the visitor said.

Even more, Tourtois expressed optimism that this project, named Financial Government Support Project, which is being implemented in phases, will continue to deepen the implementation of accrual accounting at the state level and will continue to be extended to other public entities – like regional and local authorities, as well as other public establishments; by strengthening dedicated information systems. 

France also credited the Cameroon government with improvements in managing financial risks of public entities, disclosing that with more than 133 billion FCFA in subsidies, public institutions have taken on a predominant role in the implementation of public policies.

“The situation is similar for the 42 public enterprises, which have generated more than 41,000 jobs in the Cameroonian economy in recent years. This portfolio of public entities is not without significant budgetary risks,” Tourtois pointed out.

A word from government spokesman

The Minister of Finance, Louis Paul Motaze, host and chair of the session, told the gathering that the third phase of the Financial Governance Support Project, PAGFI 3, is but a continuation of PAGFI 2, which aims to improve the management of public finances by contributing to reform initiatives at central, decentralised and parastatal levels.

Therefore, apart from improving budgetary and accounting information for the state, it will do same for regional and local authorities, RLA, and public establishments, EP, as well as control budgetary risks linked to public enterprises and establishments, EEP.

Minister Motaze told participants that in the short and medium term, achieving this objective appears to be a necessary condition for regaining budgetary room for manoeuvre. 

He harped that implementation of reforms in the finance management sector, will also help to maintain macroeconomic stability and to funding investments that are conducive to more inclusive growth, geared towards sustainable development.

The finance minister was corroborated by Boumsong Sophie, Chief of Service for Budgetary Reforms Division, at the Ministry of Finance, who answered questions from journalists at the end of their deliberations. 

She disclosed that the first session incorporated the swearing in of new members of the PAGFI 3 Committee, with her as coordinator. 

She added that they were determined, more than ever before, to keep consolidating the gains so far made, until the public accounting system meets the aspiration of upgrading the living conditions of Cameroonians as desired by government and international funding partners.

What PAGFI 3 aims to achieve

According to documents made available to journalists by the Ministry of Finance, the drawing up of both PAGFI 2 and 3 was guided by the Global Plan for Public Finance Management Reform, PCFGRP, initiated during the 2019 - 2021 business period and finetuned during the 2022-2023 period.

So, in the effort to strengthen budget credibility, the committee will focus on targeted and improved forecasting to make sure that funds are always available to carry out government’s set objectives.

To improve accounting at decentralised collectivities and other public entities, Committee members also aim to ensure that general accounts are kept at each of the other levels of governance and public finance management; and that their accounting systems are more integrated and are compliant with agreed reforms.

As it concerns the control of budgetary risks, the committee will step up monitoring of the performance of public companies and establishments; as well as finetune all round financial and technical supervision by the state.

This story was first published in The Guardian Post issue No:3142 of Tuesday June 18, 2024