State Budget Forecasts For 2027-2029: Prime Minister Instructs Document Completion

“The Prime Minister, Head of Government, His Excellency Joseph DION NGUT E, chaired a Cabinet Meeting on Friday 26 June 2026, as from at 10:00 am, in the Auditorium of the Prime Minister' s Office. The Meeting was attended by Ministers of State, Ministers, Ministers Delegate and Secretaries of State. The following items featured on the agenda: 1. Statement by the. Minister of Finance on "the macroeconomic framework and the State's budget forecasts for the three-year period 2027- 2029"; 2. Statement by the Minister of Economy, Planning and Regional Development on "the structure of the medium-term priority investment programme", 3. Other matters Following the opening remarks by the Head of Government, the Minister Delegate to the Minister of Finance began by outlining the objectives, challenges and scope of the Budgetary Orientation Debate, which, for the past few years, has been held midway through the financial year. Turning to the macroeconomic context, he noted that the outlook for the global economy continues to be affected by the effects of the conflict in the Middle East in' 2026. This situation is expected to result in a slowdown in global growth, with the rate projected to decline from 3.4 per cent in 2025 to 3.1 per cent in 2026, before stabilising at 3.2 per cent in 2027, provided that hostilities in that part of the world effectively come to an end. At the national level, the Cameroonian economy is expected to remain resilient, with growth projected at 3.5 per cent in 2026 and 3.7 per cent in 2027, up from 3.4 per cent in 2025. Inflation, for its part, is expected to continue its gradual decline, easing to 4 per cent in 2026 and 3.2 per cent in 2027. In this context, fiscal policy for the period 2027— 2029 should be guided, inter alia, by the conclusion of a new Economic and Financial Programme with the International Monetary Fund to ensure that public debt remains sustainable. Accordingly, the planned measures will focus chiefly on strengthening the mobilisation of domestic nonoil revenue and streamlining public expenditure, in order to maintain public debt below 50 per cent of GDP. During the reference period, public policy will prioritise the revitalisation of the infrastructure, agricultural, industrial and social sectors. This will involve, in particular, improving the condition and functionality of the road network, restoring the financial viability of the energy sector, increasing the supply of and access to drinking water, boosting agricultural production, and expanding and diversifying the national industrial base. On the social front, particular emphasis will be placed on extending the universal health insurance scheme to the most disadvantaged segments of the population, as well as accelerating the operationalisation of the Special Fund for the economic empowerment of women and the promotion of youth employment. Finally, the Minister Delegate $0 the Minister of Finance outlined the principal macroeconomic, institutional and financial risks that could undermine the effective implementation of the proposed fiscal policy. Taking the floor next, the Minister of Economy, Planning and Regional Development began by highlighting the economic constraints that call for a more rigorous, selective and prioritised approach to public investment planning. He subsequently presented the reforms initiated to significantly enhance the quality of public investment expenditure. These reforms are aimed, in particular, at strengthening project appraisal and selection mechanisms, as well as improving the monitoring of project implementation and the evaluation of project performance. Furthermore, there are plans to make the use of performance-based contracts systematic for public enterprises and institutions, while prioritising alternative sources of financing, notably public-private partnerships, project finance and climate finance opportunities. Priority Investment Programmes for the 2027- 209 period will ensure on accelerating the deployment of the infrastructure to strengthen the competi1iveness of the national economy. Particular emphasis therefore be placed on improving electricity supply and developing digital infrastructure. Efforts will also focus...