CEMAC public spending down by 4,000bn CFA
APA - Douala (Cameroon) - Public spending within Central African Economic and Monetary Community (CEMAC) countries declined by 4000 billion CFA over the past triennium (2014-2017), the Bank of Central African States (BEAC) said Wednesday.
Clearly, these expenditures have gone from 7,000 billion CFA in 2014 to stabilize at 3,000 billion CFA in 2017, a staggering decreased of 4,000 billion CFA in three years.
This drastic reduction in public spending is the consequence of the fiscal adjustment measures implemented within the states or enacted by the BEAC since the decline in global commodity prices.
These include the drop in oil price on the international market, which is detrimental to the economies of the subregion, especially as five of the six countries which compose this area are oil producers and exporters.
Among these producing countries, apart from Cameroon, which has a diversified economy and which economic resilience can be appreciated, other countries in the subregion, such as Congo, Gabon, Equatorial Guinea and Chad, have economies that depend on more than 80 percent of oil.
As a result, several development projects are halted, while the settlement of certain receivables has been frozen.
Despite this decline, the BEAC insisted on “reducing State spending and diversifying the means of production,” so that CEMAC countries can no longer depend on raw materials and, above all, on oil.