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IMF recommends fiscal reforms to unlock Cameroon’s true potential for economic growth - Fab-book

’Expanding the non-oil revenue base is a crucial goal because Cameroon’s oil reserves are being gradually depleted. This will require policies aimed at streamlining exemptions and focusing tax incentives on priority sectors. At the same time, it will be essential to continue improving tax and customs administration. ‘’ Mitsuhiro Furusawa said.During his working visit to Cameroon from 14 to 15 September, Mitsuhiro Furusawa, Deputy managing director of IMF, told media that it is essential to implement fiscal reforms as part of a three-year development plan (2017-2019) backed by the IMF since June 2017.

According to the IMF’s deputy director, it is necessary to monitor and ensure in the of the budget to make expenditure strategies more efficient and, to also improve the concession of public contracts to facilitate the development of infrastructure projects.
Another set of fiscal reforms is about public companies because many of those companies are over-indebted. Moreover, subsidies to public companies represent around 1% of the GDP. ‘’ Improvements in financial reporting and enhanced control of the firms’ management will help protect the State budget against contingent liabilities associated with the companies,’’ the deputy manager recommended.

The IMF-backed plan will greatly contribute to fiscal reforms. For instance, to improve budget’s transparency, the programme plans for the release of quarterly reports on budget’s execution. It will also back reforms that will support the budget-prepartion process. Only matured projects will be covered by the budget to ensure effective implementation.
‘’The IMF is also committed to providing comprehensive technical assistance and training in this area. In the coming weeks, Fund staff will assist in the areas of revenue administration, tax and customs modernization, budget management, and management of fiscal risks’’ Mitsuhiro Furusawa concluded.

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