2017 Finance law:

FCFA 4373.8bn proposed  as state budget

The president of the republic is expected to give his final say on the amount before the finance bill is eventually tabled in parliament

By Mercy Neba in Yaounde

H.E. Elung Paul Che, Minister Delegate 

to the MINFI in charge of the Budget 

Parliament opened for the third and last ordinary session for the 2016 legislative year on Thursday 10 November 2016.

                The session that has as main agenda the examination and adoption of the Finance Bill that contains the proposed state budget for 2017, opened without government haven tabled the said bill.

                This is against the standing orders of parliament which stipulate that the finance bill should be submitted in parliament not less than 15 days to the start of the budget session.

                However, information gathered by The Median are to the effect that the envelope proposed by the government as budget for 2017 stands at 4373.8, with a net increase of 138.1 billion when compared to the 2016 budget. This represents a percentage progression of 3.1%.        

                Yet, it is not immediately known if the budget would be submitted in parliament as it is. This is because the President of the Republic is yet to put his signature on the bill.

                It should be recalled that last year the proposed budget was increased by up to 488.1 billions, from 3.746.6 billions to 4.234.7 billion, after the Finance Minister had told the council of ministers that the budget was 3746.6 billions. This made a net increase of 13% compared to the initial envelope.

                The government envisages a growth rate of 6.1% in 2017, as against 5.3% in 2016. This contradicts with the IMF projection of  4.8% in 2016 and 4.2% in 2017.

                Thus between IMF and the government the disparity in projections is very marked, up to 1.9%.

                Also, the increase in non-petroleum revenue is projected at 5.5% of the gross domestic product GDP. This considers that a barel of petrol sells at 40 dollars, for an exchange rate of 560 FCFA per dollar.

                It is estimated that the realization of the 2016 budged will witness a deficit of 6% of the PIB, up from a recompended deficit of at most 1.5% by the IMF.