ABSTRACT

This research endeavors to investigate the involvement of the executive and legislative branches in budgetary affairs within Cameroon. The research objectives encompass both broad and specific aims. The overarching aim of this study is to scrutinize the roles of the legislative and executive branches concerning budgetary matters. The specific objectives include an analysis of the budget concept, an examination of the legal framework governing the legislative and executive branches in budgetary affairs, an assessment of the challenges encountered by both branches in the execution of their budgetary responsibilities, and the formulation of policy recommendations. The primary research inquiries involve delineating the functions of the legislative and executive branches in Cameroon’s budgetary processes. Specific research queries include clarifying the concept of a budget, elucidating the legal structure regulating the roles of the legislative and executive branches in budgetary matters, identifying the obstacles faced by these branches in discharging their budgetary functions, and ultimately, proposing policy recommendations to address these challenges.

CHAPTER ONE

Introduction

The budget is an integral aspect of state institutions, often regarded as the lifeblood that sustains their functioning. State institutions rely on the budget for their operations, making it a fundamental element of governance. The budget, in essence, serves as the blueprint for state revenue and expenditures, guided by the financial laws of the land. It delineates the allocation of resources over a specific financial year, as specified under Section 4(1) of Law No. 2018/012 enacted on the 11th of July 2018. This budget, once approved as a finance law, stands as the cornerstone of fiscal governance.

Public finance law is a specialized discipline that delves into the legal framework governing the revenue and expenditures of the state and other public entities subject to public law. Additionally, the study of finance encompasses the allocation of resources within the context of uncertainty and risk management. It is underpinned by three fundamental analytical pillars: optimization, activity evaluation, and risk management.

A set of principles guides budgetary matters in Cameroon, and these principles are particularly relevant in the execution of the budget:

The first principle is the “annual budget,” rooted in the historical notion of consent to taxation. This principle entails that budget authorizations are granted annually, emphasizing both political and financial considerations. Politically, it ensures the survival of parliament by granting short-term budgetary authorizations, which in turn enhance legislative control over executive power. Financially, the annual timeframe is deemed suitable, given that longer periods are susceptible to disruptions caused by economic, social, political fluctuations, and weather.

The second principle, “balance-budget,” mandates that revenue and expenditure within the state’s budget should equate. For instance, the 2021 financial year’s general state budget of 4.865.2 billion aligns total expenditure with revenue.

The third principle, “budgetary sincerity,” was introduced into Cameroon’s public finance system by the 2007 law. It requires the finance law to provide accurate and transparent information regarding all state revenue and expenditures. This principle prohibits the Cameroonian government from underestimating expenses or overestimating resources presented in the budget bill, emphasizing the clarity, precision, and completeness of information.

The fourth principle is “budgetary unity,” which asserts that the budget should encompass all state expenditures and resources. This principle obliges the government to present all state revenues and expenditures within a single document to prevent fragmentation, ensure transparency, clarity, and sincerity. It, in turn, promotes effective parliamentary oversight.

The fifth principle, “budgetary universality,” is embedded in Section 4(3) of the 2018 law, emphasizing that aggregate revenue should correspond to aggregate expenditure. It mandates that all proceeds are integrated into the state budget, blurring the distinction between revenue and expenditure. This principle enhances parliamentary authority in monitoring government actions.

1.1 Background of the Study Participating in discussions on public finance may appear challenging due to the abstract nature of the topics, the complexity of the subjects discussed, and the utilization of technical jargon. As a result, most discussions surrounding public finance typically occur among experts such as economists, tax professionals, policy analysts, and legal experts. These conversations transpire within specialized spheres, including economic journals, research institutions, government departments, and other relevant forums.

Nonetheless, public finance issues are of collective importance and relevance. Government budgetary choices reflect the choices of society and have far-reaching implications for various aspects of daily life. Furthermore, individuals directly contribute to funding government activities through taxation. Consequently, every taxpayer possesses a legitimate right to engage in discussions about public finance. This does not necessitate active participation but entails sharing views with elected representatives, developing informed opinions on public finance, and conveying concerns about public finance matters.

In recent years, decision-making processes regarding public finance in Cameroon have become increasingly centralized. Budgets are predominantly formulated in a limited number of decision-making centers closely linked to political power. This trend has implications for parliamentary processes. Although parliament is the primary legislative body, the reality is that a small faction of parliamentarians, primarily from the Cameroon’s People Democratic Movement (CPDM), actively participate in the budget’s consideration and adoption process. Conversely, the majority of parliamentarians, hailing from different political parties such as the Social Democratic Front (SDF), Union Des Populations Du Cameroon (UPC), MRC, and others, often lack awareness of the budget process. During budget consideration in parliament, members from other political parties frequently resort to boycotts as a form of protest. The underlying issue is that the executive branch, after initiating the budget bill, engages CPDM parliamentarians and briefs them on the bill’s deficiencies, enabling them to address these weaknesses before presenting the bill in a plenary session.

The result is a diminishment of parliament’s authority, which is tasked with adopting the state budget and budget bills related to decentralized regional and local authorities. However, parliament has no authority to initiate or amend budget bills. This concentration of power has not only limited but also weakened the role of parliament in the budgetary process.

These challenges have implications for Cameroon’s public finance system, and addressing these issues is vital to ensure the equitable distribution of resources and foster transparent and effective fiscal governance.

[1] Section 4, Law No. 2018/012.