State Coffers Running Dry: President Biya's Call for Belt-Tightening Echoes in Presidential Directive to Curb State Expenditure

State Coffers Running Dry

With state coffers reportedly running dry, President Paul Biya has called upon citizens to tighten their belts in the face of economic challenges. This directive comes at a time when administrative cutbacks are looming, triggered by a recent fuel price hike that has further strained the nation's financial resources.

The missive, dated January 4, 2024, and addressed to Prime Minister Dion Ngute through Secretary-General Seraphin Magloire Fouda, calls for a "Rationalization of public operating expenses." Prime Minister Ngute, under the guidance of President Biya, is tasked with curbing unnecessary meetings, seminars, missions, and other expenditures to address the financial crisis.

Explicit Instructions for Fiscal Responsibility

The instructions outlined in the directive are explicit and point to a comprehensive strategy to navigate the financial challenges:

1. Substantially limit the creation of Committees/Working Groups and associated expenses, foreign missions, as well as the acquisition of official vehicles and fuel expenses.

2. Exercise control over the management of resources in the context of public procurement of goods and services costing less than five (05) million FCFA.

3. Prioritize the optimal redeployment of numerous available personnel to contain new recruitments, aligning profiles with the human resource needs of the administrations.

4. Postpone any initiative aiming to transform services under ministerial departments into public establishments.{loadmoduleid 377}

5. 

A crucial point highlighted in the directive is the observation that so-called "4.9" contracts serve as instruments for the embezzlement of state funds, emphasizing the need for increased scrutiny in financial dealings.

Presidential Spending Amidst Austerity Measures

However, amidst the call for a reduction in state expenditure and President Paul Biya's plea for Cameroonians to tighten their belts, revelations about the 2024 budget raise eyebrows. The Presidency of the Republic of Cameroon is allocated a staggering 55,300,000,000 FCFA for the next 12 months, translating to 1.3 billion FCFA for each of the 52 weeks of the year. This daily allocation amounts to 151,923,075 FCFA throughout 2024, excluding staff salaries.

It's noteworthy that this budget allocation does not align with the overall directive for fiscal responsibility and reduction of state expenditure. The contrast between President Biya's call for financial prudence and the substantial budget for the Presidency raises questions about the government's commitment to austerity measures.

This revelation unveils a complex economic landscape in Cameroon, where the government is forced to balance the need for financial prudence with maintaining the functionality of essential institutions. As citizens brace for economic challenges, the implementation of these directives will undoubtedly shape the nation's financial trajectory in the coming months.

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