By Etienne Mainimo Mengnjo
President Paul Biya has ordered government administrations to rein in spending and prioritise the completion of ongoing projects in the preparation of Cameroon’s 2027 State Budget.
The directives are contained in Presidential Circular No. 001 of 12 October 2026, a 24-page document outlining the strategic guidelines for preparing the country’s budget for the 2027 financial year.
The circular, issued a year after Biya’s re-election, sets out the government’s priorities, fiscal policy orientations and practical guidelines for the administrations involved in the budget process. Its main objectives include improving revenue collection, protecting purchasing power, containing public expenditure and promoting inclusive economic growth.
For 2027, the government projects economic growth of 3.6 per cent, inflation of 3.2 per cent, a budget deficit of about 3.2 per cent of Gross Domestic Product (GDP) and a current account deficit of 2.8 per cent of GDP.
The projections point to modest economic growth, alongside a budget deficit that is expected to widen further. The circular outlines economic, social, tax, customs and governance measures intended to sustain growth, modernise the productive sector and improve living conditions.
Among the priorities is the acceleration of the Integrated Agropastoral and Fisheries Import-Substitution Plan, known by its French acronym PIISAH. The government also wants to improve access to agricultural and livestock inputs by putting in place mechanisms to make them more readily available and affordable.
The circular further calls for the development of the pharmaceutical industry through investment and partnerships aimed at increasing local drug production. It also advocates improved access for locally produced medicines to public procurement opportunities.
On energy, the President has called for increased electricity generation capacity through the construction of new hydroelectric dams. The Kikot project is among those highlighted, with the circular directing that the process of bringing it to maturity be completed.
Biya has also instructed the government to use the 2027 budget to complete or accelerate major infrastructure and development projects. These include the Yaoundé-Douala motorway, the transmission line linked to the Nachtigal hydroelectric dam, the opening up of production zones, mining projects and the rehabilitation of the National Refining Company (SONARA).
However, the circular makes clear that the government’s investment priorities will centre on projects already under way rather than the launch of new ones.
Although Cameroon plans to allocate at least 30 per cent of its general budget to public investment in 2027, the President has directed administrations to focus on completing ongoing projects and settling outstanding payments.
Given the volume of commitments already made by some administrations, the circular states that funds should be channelled towards existing projects to ensure their completion and eventual commissioning. The launch of new projects is, where applicable, to be restricted under the 2027 budget.
The guidelines also provide for flexibility in budget allocations. The initial funding envelopes communicated to administrations ahead of budget discussions are indicative and may be adjusted upwards or downwards, depending on the relevance of proposed projects to programme objectives and their level of preparedness.
To strengthen control over public spending commitments, the circular further stipulates that the budget envelopes communicated by the Prime Minister, Head of Government, will be capped through Commitment Authorisations and Payment Credits.
The preparation of the 2027 State Budget will be guided by Law No. 2018/012 of 11 July 2018 on the Financial Regime of the State and Other Public Entities, as well as Decree No. 2019/281 of 31 May 2019, which establishes the State budget calendar.
The government is also expected to continue strengthening programme-based budgeting through the preparation of annual performance plans for each administration, organised by programme.
