logoBC
Yaoundé - 18 May 2021 -
Finance

Cemac: Member countries should amend their 2020 finance law because of Covid-19 (Ministers of Economy and Finance)

Cemac: Member countries should amend their 2020 finance law because of Covid-19 (Ministers of Economy and Finance)
  • Comments   -   Friday, 03 April 2020 10:55

(Business in Cameroon) - With the Coronavirus pandemic, revenue projections in Cameroon's 2020 budget of XAF4,850.50 billion have become unrealistic and budgetary allocations irrelevant. For several experts, it is now necessary to revise this finance law since for less significant shocks, Cameroon revised its budget in 2018 and 2019.

During a meeting, on March 28, in Brazzaville, Congo, CEMAC Ministers of Economy and Finance suggested member countries should quickly amend their finance law. The amendment, they say, should align with “updated and realistic forecasts of budget revenue and public expenditure, to strengthen the means of combating the spread of the Covid-19 pandemic, while ensuring the regular functioning of the State.

States were also invited to reallocate funds from non-priority public expenditure to the health system to enable effective care for infected persons. In other words, a country like Cameroon should increase the resources allocated to health.

Also, following the fall in the oil prices, Cameroon should lower its 2020 oil revenue forecasts, initially set at XAF443 billion. Indeed, the country based its forecast on the production of 26.5 million barrels with the barrel costing $57.9 and the dollar exchange rate at XAF552.7. However, with a barrel currently costing less than $30, Cameroon could see its oil revenues decrease by half.

 "We also know that with the decrease in foreign trade, imports will fall. And if imports fall, customs revenues will fall. All these will have consequences on the real economy. Reports have it that impacts will be terrible for our States. However, this will depend on the duration of the pandemic," Cameroonian Finance Minister Louis Paul Motaze (photo) said at the end of the Brazzaville meeting.

According to the official, Cameroon’s tax and customs revenues, forecasted at  XAF2,962.2 billion for 2020 should also be revised downwards.

Sylvain Andzongo

tunisian-firm-simac-selected-for-the-development-of-sigipes-ii-after-the-audit-conseil-cbl-consulting-episode
Tunisian company SIMAC has been selected to develop the 2nd generation Integrated Computerized State Personnel and Payroll Management System (SIGIPES II)....
mining-corporation-sonamines-seeks-statutory-and-alternate-auditors
In Cameroon, the newly created mining corporation SONAMINES is seeking one statutory and one alternate auditor, according to a tender document recently...
the-new-economic-program-could-fetch-xaf375-bln-budget-support-for-cameroon
The Cameroonian government is currently stepping up its efforts to get its new 2021-2024 economic and financial program approved by June 2021. The...
commercial-bank-cameroon-government-will-sell-most-of-its-shares-to-a-strategic-partner-and-retail-investors-dg-leandre-djummo-says
The government of Cameroon will sell most of its 98% shares in Commercial Bank-Cameroon (CBC), a release signed on May 4, 2021, by the bank’s Director...

Mags frontpage


Business in Cameroon n99: April 2021

Outages ENEO’s director-general explains the situation


Cocoa: Time to boost processing


Investir au Cameroun n109: Avril 2021

Délestages Le DG d’Eneo s’explique


Cacao : cap sur la transformation

  1. Most read 7 days
  2. shared 1 month
  3. read 1 month
next
prev