State budget preparation: Biya rolls out guidelines to fast-tract economic dev’t in 2025.

The circular instructs the officials to accord special attention in the execution of the 2025 State Budget so that it creates optimal impact towards the attainment of the objectives contained in the strategic document for national development, SND30.

Previewed as a socioeconomic impact budget, President Biya said special emphasis should be placed on how to increase energy output so that local industries and household businesses will operate more efficiently; guarantee the opening up of agriculture and potential industrial production basins; with overall aim being to increase local supply of essential goods, consumables and agro-industry inputs.

Also, focus will be on providing more financial support to the industrial sector; continued improvement of people´s access to quality healthcare; and the preservation of the purchasing power of vulnerable households.

Government also intends to continue speeding up the decentralisation process next year; beef up national security surveillance and continue the implementation of the Presidential Plan for the Reconstruction and Development of the North West, South West Regions.

“The preparation of the 2025 State Budget should consolidate the implementation of the programme-based budget, regarding its preparation, presentation, execution and monitoring-evaluation,” President Biya stressed.

Macroeconomic context

President Biya reminded stakeholders that the 2025 State Budget will be executed within a global macroeconomic context which everyone must take cognizance of.

He noted that armed conflicts around the world are slowing down economic recovery in many nations, pointing specifically to the Rusia/Ukraine war and the conflict in the Middle East. 

He also mentioned the continued global policy of tighter financial conditions, in particular the maintenance of high interest rates; increased geo-economic fragmentation, with consequences for trade and the movement of capital.

President Biya cited the IMF economic outlook for 2024 published in July, showing that world economy will grow by a modest 3.2%; after 3.3% growth recorded in 2023. 

According to the document, growth will remain at 1.7% in advanced countries, while in emerging and developing economies, growth is set to decelerate from 4.4% in 2023 to 4.3% in 2024.

Down to specifics

President Biya emphasised that in 2025, the overall public policy objective remains the strengthening of the economic growth trend, as well as its inclusive nature. 

Therefore, industrial transformation of the national productive fabric and improvement in the living conditions of Cameroonians must be beefed up.

To which end, certain actions must be implemented as a matter of urgency, President Biya stated. 

The Head of State mentioned strengthening security watch along the borders and built-up areas; and pursuing the disarmament, demobilization and reintegration process.

On consolidating the economic front, President Biya gave assurance that government will implement measures that will work towards achieving the objectives of the Integrated Agropastoral and Fisheries Import Substitution Plan, PIISAH.

He also talked of easing access to agricultural and agro-pastoral inputs; promoting the development of the pharmaceutical industry; accelerating work on the construction of the Kikot hydroelectric dam and the development of other renewable energy sources. The Nachtigal dam is expected to be commissioned anytime in 2025, he further assured. 

Beefing up water supply, construction of more low-cost houses, maintenance of existing infrastructure are among other projects which government plans to implemented in 2025 so as to create the social impact of ameliorating the living conditions of Cameroonians.

Highlights on revenue generation

President Biya gave assurance that in 2025, government will pursue an internal taxation policy with the objective to build trust among tax payers and investors. 

An ambition which the government considers as a prerequisite and a necessity for increased tax revenue mobilization without impeding economic growth.

Therefore, government will focus on how to reduce the tax burden on small businesses; further align the dematerialization of tax procedures; and strengthen tax payer´s rights and guarantees.

Government also aims to foster the improvement of the business climate by accelerating the implementation of reforms that are meant to improve the perception of rating agencies; through ownership of the new “Be Ready in Business” methodology.

While the customs policy for next year will involve optimizing measures that contribute to national security, regulate economic activity, facilitate foreign trade and improve the business climate. All with the objective to up revenue generated locally.

This article was first published in The Guardian Post issue No:3274 of Tuesday October 29, 2024