Budget deficit of Cameroon is due largely to the decrease in revenues from oil, which regularly comprises 25% of the government’s revenues. Cameroon’s budget deficit maxed out at the year end of 2016 at 6.9% of GDP as reported by Standard & Poor’s, an American rating agency.
However, over the period 2017 to 2020, Cameroon’s deficit according to the same report will be declining to 4.3% of GDP on the average. This projection according to Standard & Poor’s is based on the expected increases in revenues in connection with the introduction of new taxes in the country and the international market’s increase in the prices of crude oil.
The Cameroonian government in reference to the Finance law 2017 has created some twenty new customs and tax measures to deal with the decline in oil revenues and the implementation of economic partnership deals with the European Union. The partnership aims to establish a free trade zone between Cameroon and the European Union.
However, it is notable that in spite of the reported development in tax and customs and oil revenues, an increase in government debt in the country is projected by S&P due chiefly by spending in equipment in connection with key investment projects and the organization of the forthcoming elections for 2018.