Louis Paul Motaze, Cameroon's Minister of Finance, recently unveiled the country's 2025 budget proposal, which is set at 7.3 trillion FCFA pending parliamentary approval. The budget reflects a modest growth projection compared to the current year, with an anticipated increase of 39.6 billion FCFA from the previous fiscal year's budget of 7,278.1 billion FCFA.
In his address to the National Assembly, Minister Motaze highlighted the expected economic growth of 4.1% in 2025, slightly up from the current year's 3.8%. This growth is primarily attributed to the non-oil sector, which is forecasted to expand by 4.3% in the upcoming year, surpassing the growth rates of 4.1% in 2024 and 3.6% in
2023. However, a decline in oil production by 1% is anticipated for 2025, following a 2.6% increase in 2024.
The Minister also addressed inflation concerns, stating that the inflation rate is expected to decrease to around 4% in 2025 from 5% in 2024.
Budget Breakdown Minister Motaze outlined the structure of the 2025 budget, indicating that domestic revenues and grants are projected to reach 5,548.1 billion FCFA, marking a 6% increase from the previous year. Oil revenue is estimated at 734.8 billion FCFA, showing a decrease of 8.3% compared to 2024, attributed to global oil price
fluctuations and currency exchange rate variations.
Total budget expenditure, excluding debt repayments, is set at 5,563.6 billion FCFA, representing a 5.4% relative increase from 2024. The expenditure breakdown includes personnel costs at 1,586.6 billion FCFA, goods and services at 1,027.7 billion FCFA, transfers and subsidies at 920.8 billion FCFA, interest on debt at 378.2 billion FCFA, and capital expenditure at 1,650.2 billion FCFA.
Public Investment Budget
For the Public Investment Budget (PIB), Minister Motaze revealed a planned
allocation of 1,863.1 billion FCFA for 2025, reflecting a 16.1% relative increase from
2024. The PIB constitutes 33.5% of the total budget expenditure. The overall budget shows a deficit of 107.8 billion FCFA, down from 137.9 billion in 2024, illustrating a reduced financing requirement.
Additionally, the government will address various financial obligations, including external debt repayment of 729 billion FCFA, domestic debt repayment of 646.7 billion FCFA, VAT credit refunds of 84 billion FCFA, outstanding payables of 207.5 billion FCFA, and exceptional financing expenditures of 189.4 billion FCFA.
Budget Innovations
A key feature of the 2025 Finance Bill is the reduction of fuel pump price subsidies
from 263 billion FCFA in 2024 to 15 billion FCFA in 2025. Minister Motaze
emphasized a continued focus on fiscal consolidation and aligning budget policies with the National Development Strategy (SND 30) objectives. The government's priorities also include ensuring the successful organization of the 2025 presidential election and fostering economic growth to enhance citizens' living standards.
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