Modernising public finances

Project description

Title: Programme to support the modernisation of public finances
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Cameroon
Lead executing agency: Ministry of Economy, Planning and Regional Development (MINEPAT); Ministry of Finance
Overall term: 2014 to 2017

Context

As a low- to medium-income country, Cameroon is struggling to overcome considerable obstacles to development. Ranking 183rd of 226 countries in the United Nations Human Development Index with a per capita income of USD 2,300, Cameroon is one of the world's least prosperous countries. In the health sector, in particular, the country is now further away from achieving the Millennium Development Goals, and life expectancy is low (51.6 years).

Cameroon's Vision 2035 and its national development strategy are designed to improve the situation of the population. They focus on growth, employment and good governance, and cross-cutting issues include the impacts of climate change and gender equality.

These goals are currently being implemented through a reform of public finances, the introduction of results-oriented budgeting and strict coordination of planning, programming, budgeting and evaluation. For this to be successful, financial, material and human resources need to be mobilised and used effectively and efficiently. This calls for action not only by the government, but also by the private sector and Cameroon's technical and financial partners.

Objective

The Ministry of Economy, Planning and Regional Development (MINEPAT) and the Ministry of Finance steer the budget process in line with the national development goals.

Approach

The GIZ ”Programme to support the modernisation of public finances” advises the Government of Cameroon on the implementation of the national development strategy through the national budget. Activities focus on improving the budgetary planning, implementation and monitoring in line with the specifications of the Economic and Monetary Community of Central Africa (CEMAC). Using this process chain, national development goals and strategies are to be translated into ministerial programmes, and the necessary funding is to be earmarked in the annual budget and expenditure. An evaluation is subsequently being carried out to verify to what extent the funds have helped attain the national development goals or whether counter-measures need to be taken. Capacity building activities by PAMFIP supporting the budget reform are aligned to the national capacity building strategy; its operational plan for 2016 is elaborated in close collaboration with the reform division (DREF) of MINFI and MINEPAT. The German consulting company AMBERO supports the programme in this area.

The programme helps to translate the national development strategy into sector strategies, taking into account cross-cutting topics such as gender and climate change mitigation and adaptation. It equally works on improving Cameroon’s tax administration, by developing the IT system “Fusion” which brings together data from both customs and tax administration in view of improving the management of VAT credits through a risk management approach. The Norwegian consulting company Revenue Development Foundation supports the programme in this area. Further, the program supports the tax administration to prepare for an integrated IT solution for revenue and expenditure management.

The programme advises and supports the Support Council for the Realization of Partnership Contracts (CARPA) attached to MINEPAT. In charge of implementing public-private partnerships, it aims at contributing to the national growth and employment goals by involving the private sector more heavily in infrastructure and public utilities management.