EXECUTION OF THE BUDGET AT THE END OF DECEMBER 2017
newsare.net
REPUBLIQUE DU CAMEROUN Paix – Travail – Patrie —————- REPUBLIC OF CAMEROON Peace – Work – Fatherland —————- MINISTERE DES FINANCES —————- MINISTRY OF FINANCEEXECUTION OF THE BUDGET AT THE END OF DECEMBER 2017
REPUBLIQUE DU CAMEROUN Paix – Travail – Patrie —————- REPUBLIC OF CAMEROON Peace – Work – Fatherland —————- MINISTERE DES FINANCES —————- MINISTRY OF FINANCE —————– SECRETARIAT GENERAL —————- SECRETARIAT GENERAL —————- DIRECTION DES AFFAIRES ECONOMIQUES —————- DEPARTMENT OF ECONOMIC AFFAIRS —————- DIVISION DES FINANCES PUBLIQUES —————- PUBLIC FINANCE DIVISION —————- EXECUTION OF THE BUDGET AT THE END OF DECEMBER 2017 During the 2017 financial year, the State budget was implemented within a context marked at the international level by: (i) a global economy that was consolidated throughout the year, with a growth estimated at 3.7% compared to 3.2% in 2016, thanks in particular to the good performance of world industrial production and the recovery of international trade. According to the IMF, this dynamic should continue in 2018, in view of the first indices of the year, with growth expected to be higher than in 2017, between 3.8% and 3.9%, driven by United States and emerging countries. (ii) The low level of world oil prices, despite an increase of more than 20% in 2017 compared to 2016. The price of oil stands on average at $ 60 per barrel. At the national level, the budget implementation context was marked by: (i) a slowdown in economic activity, whose growth rate should be around 3.7% in 2017 against 4.5% in 2016 Economic activity should be revitalized in 2018, with a growth rate projected at 4.2%, driven by the tertiary sector and increased energy supply for secondary sector companies; (ii) the further decline in inflation, the rate of which, according to the NIS, is estimated at 0.6% in 2017 against 0.9% in 2016 and 2.7% in 2015; (iv) the budgetary support obtained from development partners, following the satisfactory implementation of the economic and financial programme at the end of the first half of 2017; (v) the second year of implementation of the Economic Partnership Agreement (EPA), with the inclusion of the so-called second group goods and the doubling of the tariff reduction rate for goods in the first group; and (vi) the fight against insecurity in the North West and South West regions. Overall, the implementation of the State budget in the 2017 financial year was particularly characterized by a good performance of tax revenue and under-achievements in both oil revenue and non-tax revenue, as well as control of budgetary expenditure. The evolution in revenue and expenditure is as follows: I- BUDGETARY REVENUE During the 2017 financial year, total budgetary revenues stood at 4,451.9 billion. They are on the increase by 822.4 billion (+ 22.7%) compared to the previous year. This increase can be seen both at the level of internal revenues and that of loans and grants. Domestic budgetary revenue collected amounted to 3,057.1 billion, recording an increase of 218.8 billion (+7.7%) as compared to 2016, when it stood at 2,838.3 billion. This increase is mainly attributable to non-oil revenue. Borrowings and grants amounted to 1,394.8 billion at the end of December 2017 compared to 791.2 billion at the end of December 2016, showing an increase of 603.6 billion (+76.3%). This increase is mainly due to exceptional resources for budgetary support from development partners, within the framework of the implementation of the economic and financial programme with the IMF, and improved disbursements for project loans. With regard to forecasts, the target of total budgetary revenue for the 2017 financial year set at 4,373.8 billion was exceeded. Achievements stood at 4,451.9 billion, representing a completion rate of 100.8%. This overrun is attributable to loans and donations. In fact, internal budgetary revenues show an achievement rate of 97.3% compared to the 3,143.3 billion annual forecast, while loans and grants have a realization rate of 113.4% compared to the projected, 230.5 billion. By categories of revenues, the evolution is as follows: 1- Oil revenue amounted to 385.9 billion at the end of December 2017, down by 39.1 billion (-9.2%) compared to the end of December 2016, due to the effects of the low level of world oil prices. on the activity of the oil sector. It consists of 319.4 billion of NHC oil royalty and 66.5 billion tax on oil companies. Compared with the 455.1 billion annual forecast, its completion rate is 84.8%. The under-realization is attributable to the tax on oil companies which is affected by the low level of oil prices. 2- Non-oil revenue stood at 2,671.2 billion at the end of December 2017 as compared to 2,413.3 billion at the end of December 2016, representing an increase of 257.9 billion (+10.7%). Compared with the 2,688.2 billion annual target, it is on the decrease by 17 billion, representing a 99.4% achievement rate. The underperformance is observed at the level of customs revenue and non-tax revenue. The evolution and achievements of the main components of non-oil revenue is given below. a)- Revenue from taxes and levies collected during the 2017 financial year amounted to 1,790.4 billion compared to 1,585.6 billion in 2016, representing an increase of 204.8 billion (+12.9%). This increase results mainly from the 195.4 billion (+ 36.4%) increase in VAT, 16.5 billion (+15.6%) in the STPP, and 9.9 billion (+10.5%) registration fees and stamp duty. Non-oil corporations taxes and excise duties, on the other hand, recorded decreases of 32 billion (-9.1%) and 11.7 billion (-5.9%) respectively. Compared to the 1,719 billion forecast for the 2017 financial year, tax revenues are in excess by 71.4 billion, representing an achievement rate of 104.2%. This […] Read more