This is lauded as a major improvement because by this same time last year, only FCFA 620.4 billion had been collected.
But the country's economic growth that was recently projected at 4.3 percent is reportedly taking a downward trend. Economic observers say that the economic growth in Cameroon is the kind that does not trickle down to the masses. That is why human development in the country is still at a very low ebb.
The 2005 Human Development Report rated Cameroon among countries in which poverty is still eating deep in the majority of the population. More so, Cameroon's legal and governance environment is yet to be fully conducive for massive foreign investments.
In a project benchmarking business regulations in 155 countries, Cameroon was identified on September 13 as one of the countries in which it is very difficult to start a business. It is stated that even though the Investment Charter prescribes a conducive environment for investments, administrative bottlenecks and corruption have continued to scare away foreign investors.
But the document issued by the Economy and Finance Minister claims victory in the execution of this year's budget. According to him, the increase in taxes and the hikes in petroleum products have paid off. As at last June, the National Hydrocarbon and Petroleum companies were reported to have put some FCFA 179.1 billion into the state coffers. This development, according to the authorities, was possible because of the rise of the hikes in the cost of petrol in the world market.
According to statistics, non-oil revenue collected as at June, stood at FCFA 591.1 billion, indicating a 17 percent increase from that of last year. There are claims that there has been an improvement in the collection of taxes and customs duties. As at June, FCFA 165.1 billion was collected, while FCFA 364.5 billion taxes was collected as customs dues.
Non-fiscal revenue stood at FCFA 65.5 billion. The authorities say the increase in collection of fiscal revenue is due to an improvement in the tax administration and increase in Value Added Tax, VAT.
As far as expenditure is concerned, statistics indicate that as of June, FCFA 675.3 billion, representing an increase of FCFA 16.4 billion from that of last year. It is stated that due to the stringent management of the budget, unnecessary spending has been reduced. Current expenditure stood at FCFA 456 billion in June as against Fcfa 469.4 billion in June 2004, which recorded poor investment.