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Mr President of the National Assembly,
Honourable Members of the Bureau of the National Assembly,
Honourable Members of Parliament,
I am truly delighted to be amongst the Members of the Parliament of the 8th legislature to present Government's Economic, Financial, Social and Cultural Programme for the 2008 financial year.
Before discharging this constitutional duty, I would like to very sincerely thank the President of the National Assembly for the kind words he just said to us and the warm welcome given us.
On this solemn occasion Honourable Members of Parliament, I would like to, on behalf of the Government, very heartily congratulate you on your brilliant election to the National Assembly.
Permit me also Mr President of the National Assembly and Honourable Members of the Bureau, to salute your election by your colleagues to the helm of this august House. My wish is that the legislature just beginning should further strengthen the collaboration that has always existed between Parliament and Government. In this regard, I was very pleased with your recent initiative which enabled me to have fruitful discussions with a delegation of your Bureau on the preparation of the budget and wish that many more of such meetings be held.
Honourable Members of Parliament,
The ending year was marked by the third year of implementation of the Programme of Greater Achievements defined by the President of the Republic, His Excellency Paul BIYA.
In this regard, actions taken on the political front to "modernize our democratic system" were strengthened. Among these, mention can be made of:
- the computerization of electoral registers which contributed to the more efficient management of the voter registration process and electoral registers;
- the preparation and holding, on schedule, of the twin legislative and municipal elections of 22 July and 30 September 2007. The success of these elections attests to the vitality of our democracy and the maturity of Cameroonians.
Actions to enhance governance were also intensified. Thus, the Criminal Procedure Code came into force on 1 January 2007. The computerization of judiciary services was continued alongside other measures aimed at improving the administration of justice.
Furthermore, the National Anti-Corruption Committee (CONAC) - the new governmental mechanism for combating corruption - went into operation with the appointment of its members in March 2007
Honourable Members of Parliament,
During 2007, economic and financial issues remained high on Government's agenda. Globally, the concern was to follow up the 2005-2008 three-year economic programme, continue capitalizing on the positive benefits accruing from various debt relief initiatives, accompany private sector initiatives by creating a conducive investment framework, enhance the purchasing power of households and encourage financing in the SME/SMIs and profitable sectors.
At the same time, Government embarked on the process to revise our Poverty Reduction Strategy Paper (PRSP), incorporating therein aspects concerned with economic growth, employment and better delivery of social services.
With particular regard to the three-year (2005-2008) economic programme backed by the International Monetary Fund under its enhanced Poverty Reduction and Growth Facility, the two IMF/World Bank missions that visited Cameroon respectively in March and September 2007 expressed satisfaction with its good implementation.
The privatization programme of State corporations continued and was marked by the completion of the lease process of SNEC, with the choice of Morocco's Office National de l'Eau Potable as the interim successful bidder. At the end of negotiations, the latter will, in January 2008, manage the pipe-borne water supply network in our main cities.
As part of efforts to improve the living conditions of the populations, special emphasis was placed on protecting the purchasing power of consumers through consultation meetings with businesspersons. The aim was to pre-empt inflationary pressures and combat wanton speculation. In this connection, a number of price control and approval missions went on the field and a mechanism was established to monitor distribution networks. However, it remains understood that the price stabilization measures taken by public authorities cannot restrain market forces for long. It is only by supplying more consumer goods, especially those produced locally, that we will cease being victims of price hikes on these goods.
Moreover, the grant of advance salaries and pensions to State employees and retirees was re-introduced and a total amount of CFAF 16 billion was paid out for the period from June to October 2007.
With regard to regional economic integration, 2007 was marked by the implementation of far-reaching institutional reforms within CEMAC which is currently chaired by Cameroon. To date, the reforms have resulted in:
- the transformation of the Executive Secretariat of CEMAC into a Commission ;
- the enlargement of the governorship of BEAC ;
- the adoption and implementation of balanced representation of Member States in community institutions.
Moreover, negotiations are continuing with the European Union for the conclusion of an Economic Partnership Agreement (EPA). The aim is to ultimately reach agreement for the signing of a balanced instrument, capable of fostering the economic and social progress of our country and sub-region.
The SME/SMI support policy was translated into action through, inter alia, the setting up of financing schemes for small and medium size enterprises (SME). Similarly, the organization of the handicrafts sector was set forth in a law which structures, supervises and coordinates the handicraft economy.
As concerns industrial policy, mention should be made of actions taken within the framework of the Plantain Sub-Sector Reconversion Programme and the enthusiasm shown by investors for prospection and mining of the ores with which our sub-soil is richly endowed. These include cobalt and nickel in Lomie, iron at Mbalam and bauxite in Mini-Martap to name but a few.
During implementation of the Support Framework for the Promotion of Small-Scale Mining (CAPAM), light equipment was provided to about 3,000 small-scale miners.
In the tourism sector, Government embarked on an extensive programme of reclassification of hotels, to bring them in line with international standards. It also rehabilitated some State-owned hotels and built new tourist centres chiefly in Mayo Kani and Djo-and-Lobo Divisions. New tourist sites were also developed at Ebogo, Lake Awing, Lake Tizon, the Damans Islands and Mile Six Beach.
Regarding the agro-pastoral economy, the ongoing agricultural season was very ambitious like in past years, combining production and distribution of quality seeds, strengthening of the support-counselling mechanism, phytosanitary protection and the promotion of mechanization of production.
More concretely, at the end of the 2007 season, the public authorities placed at the disposal of farmers:
- 350,000 improved cassava cuttings;
- 1,023 tonnes of improved maize based seeds;
- 30 tonnes of Irish potato seeds;
- 450,000 oil palm plants;
- 7,337,671 plantain suckers;
- 700,000 cocoa pods;
- 1,150,000 robusta coffee cuttings with roots;
- 1,000 kg of arabica coffee seeds;
- 5,200 kg of rice seedlings.
Furthermore, 75,000 hectares of cocoa and 30,000 hectares of coffee received phytosanitary treatment, while 800 village squads were trained and equipped.
In the livestock sector, Government followed up its plan to prevent and fight avian flu', which led to Cameroon being declared as safe virus-free zone. Assistance was given to poultry farmers in the form of inputs with the support of development partners, in order to improve the supply of poultry products.
Given the importance Government attaches to the livestock sector, it plans this year to open a Department of Veterinary Science and Medicine at the University of Ngaoundere.
Government interventions in environmental protection and the management of forest ecosystems have continued to be guided by an integrated approach to the concept of sustainable development. Thus, implementation of the Environment/Forestry Sector Programme, which is its backbone, has been globally satisfactory in 2007.
The national parks of Takamanda and Mount Cameroon were created, and the management plans of the Waza, Bénoué, Campo Ma'an and Lobeke parks entered their implementation phase. Regarding the preservation of wildlife species, implementation of the great apes management plan has begun while the lions management plan is being drafted.
The education sector truly earned its status of priority sector of Government action in 2007: so numerous were the vote transfers and investments at all the three levels of education.
In basic education, recruitments aimed at addressing the shortage of teachers were continued, with the signing of contracts with 8,000 new teachers financed by C2D funds.
The increase of basic education infrastructure was seen in the construction of over 1,600 classrooms, 9 infirmary blocks, 230 latrine blocks and 15 staff houses.
At the level of secondary education, measures taken by Government helped to stem the outflow of Baccalaureat candidates towards foreign countries.
The school map was enriched with the creation of 199 new schools and the transformation of 64 others. Twelve multimedia resource centres received an endowment of computers. 2000 teachers and 90 monitors of multimedia resource centres were placed at the disposal of schools.
Given the urgent need to professionalize teaching, 254 teachers undertook further training in 58 enterprises, thanks to the convention signed between the Ministry of Secondary Education and the Chamber of Commerce, Industry, Mines and Handicrafts.
In higher education, the quest for better student/lecturer ratio justified the launch of recruitments, upon the authorization of the President of the Republic, of 1,000 new lecturers including 600 assistant lecturers and 400 teaching and research assistants.
Many infrastructural projects were also carried out in our universities.
In another respect, our higher education system is resolutely embarked on the path of academic modernity with the launch of the Bachelors-Masters-Doctorate (BMD) system.
The cultural policy was marked by grants to assist in the creation, production and publication of artistic works and to support cultural associations through the special appropriations account.
Honourable Members of Parliament,
As you must have noticed, whenever the country's social progress is at stake, Government action is characterized by boundless commitment and determination. This holds true in both the education and health sectors.
In public health, efforts focused on the provision of more and better care.
The number of medical staff and administrative personnel of the Ministry of Public health increased in 2007 with the recruitment of 1,650 new workers. 1,500 of them were funded on HIPC resources and 150 on C2D resources. Furthermore, 400 workers previously recruited on HIPC resources were absorbed into the public service, which made their situation more stable.
The health map was enriched with the creation of 130 new integrated health centres and 4 health districts.
Significant progress was recorded by the national HIV/AIDS control strategy with the introduction of free treatment since 1 May 2007. The treatment of malaria has also become affordable to the greatest number, since effective molecules are now sold in generic form.
State support to private non-profit health institutions increased this year, thanks to the signing of framework agreements and execution contracts amounting to CFAF 10 billion with the Episcopal Conference, the Council of Protestant Churches in Cameroon and the Ad Lucem Medical Foundation.
On the social front, Government worked in earnest to maintain a climate of appeasement by preventing and settling conflicts between social partners.
The public authorities also paid sustained attention to specific issues dealing with employment and vocational training. This was the case with the Integrated Support Project for Informal Sector Actors (PIAASI) which was followed up through sensitization, training and financial support of young informal sector actors. Close to one thousand micro-projects received support from this major governmental project in 2007, which generated more than 4,000 new jobs.
In the same vein, Government recently launched two initiatives aimed at encouraging youth employment.
The first, known as Support Programme for Rural and Urban Youths (PAJER-U), has a budget of about CFAF 12 million and seeks to promote the socio-economic integration of young school leavers and dropouts. It is expected to create close to 15,000 direct jobs.
The second is the Project for the Socio-Economic Integration of Youths through the setting up of micro-enterprises for manufacturing sports materials (PIFMAS). It has a budget of CFAF one billion and could create 700 direct jobs and 2,000 indirect jobs.
The most vulnerable segments of the population continued to receive protection in different forms. In this regard, mention can be made of the construction of the Rehabilitation Centre for Disabled Persons in Maroua, the CFAF 10 million partnership agreement signed with the National Social Insurance Fund for the refurbishing of the technical facilities of the National Rehabilitation Centre for the Handicapped and the sensitization of headmasters and principals on disabled persons' recognized right to free registration in Government schools.
As concerns the woman and family, 13 women's empowerment centres were built and studies are underway for the construction of a Women's Palace. Light agricultural equipment was distributed to different rural women's groups in the ten provinces in order to encourage female entrepreneurship and rural development.
Moreover, Government organized many collective marriage ceremonies nationwide for several hundreds of unmarried couples living together, as a means of strengthening their legal martial status.
In communication, a decisive stage was reached in the promotion of private audio-visual communication. The first operating licences were issued to 4 radio-television and tele-distribution firms, namely: Spectrum TV, Canal 2 International, Sweet FM and TV+.
In the area of infrastructure, the maintenance, increase and extension of the existing basic infrastructure were continued.
As concerns roads, apart from the maintenance of rural roads, the current portfolio of the Ministry of Public Works has some 17 ongoing study projects and 20 works projects on the classified network. Progress is about 60%.
Examples of these include:
- work on the first stretch of the Ayos - Abong Mbang - Bonis road is 70% complete, as part of the development of the Douala-Bangui corridor;
- the tarring of the Melong-Dschang road, the main stretch of which was accepted last 13 June: anciliary works are nearing completion;
- the rehabilitation of the Mutengene - Muea - Kumba road, the first stretch of which has been completed;
- the reconstruction of the Yaoundé - Soa road: globally, works are 80% complete;
- the tarring of the Yaoundé - Olama bridge - Kribi, the first stretch of which is 30% complete;
- the strengthening of the Loum - Nkongsamba - Nkam bridge road which is going on;
- the rehabilitation of the Garoua - Figuil road ;
- the tarring of the Obala - Batschenga - Bouam road ; the contract for the Obala - Nkolessong stretch is in the process of being awarded;
- the rehabilitation of the Wouri bridge, the first phase of which is completed while works on the dam and backwater are continuing;
- the construction of a reinforced concrete bridge on River Lokoundje at Lolodorf and the Mungo bridge;
- the rehabilitation of the Ebebda bridge, the Noun bridge and two viaducts at Bangangté ;
- the award of contract for rehabilitation works on the bridge over River Nyong at Akonolinga ;
- the ongoing award of the contract for construction of a 10km stretch of the "ring road".
Concurrently, many studies were finalized or are ongoing and will be used in the years ahead for far-reaching works. These include:
- the already completed studies for the tarring of the Foumban - Manki - Mape bridge and the Mape bridge - Likok stretches of the Foumban - Tibati - Ngaoundere road;
- the studies for the tarring of the Bamenda - Ekok road completed at rate of 90%. Expropriations are going on in Lot No. 2 which runs from Batibo to Bachuo Akagbe while the updating of environmental impact and economic studies on the other lots is nearing completion;
- the completion of studies for the tarring of the Garoua-Boulaï - Ngaoundere road within the Douala - Bangui corridor, whose call for tenders are being launched;
- the studies for the tarring of the Sangmelima - Djoum - Congolese border sub-regional road;
- the start of studies for the development of the east and west entry roads into Douala;
- the launch of tenders relating to studies for the construction of a super highway between Yaounde and Nsimalen;
- the relaunching of studies for the construction of a second bridge over River Wouri and its access points;
- the ongoing conduct of studies for the rehabilitation of the Pont de l'Enfance and the Mayo Boula bridge at Salak;
- the completion of studies for the construction of the LOKOMO bridge.
- the launch of studies for the construction of the Kumba - Mundemba road with a view to easing overland access to the Bakassi area.
In addition, it will be necessary to look for financing for the construction of the Kumba - Mamfe road.
Regarding air transport, Government accepted the rehabilitation works on the Maroua-Salak airport, which has restored air links with the Far North Province.
In the road transport sector, two new roadworthiness checking centres were set up in Bafoussam and Garoua. Furthermore, the protection of transport documents continued within ten centres which are now interconnected.
In the urban development and housing sector, several urban infrastructural works were carried out in some sixty towns, thanks to the State's own resources and assistance from development partners. Among these, about fifty secondary towns had their tarred or earth roads maintained. Like in previous years, emphasis was placed on the rehabilitation of the urban networks of the two cities: Douala and Yaounde. Major drainage works were also carried out in these two cities, in order to prevent flooding.
The following works were carried out in Yaounde:
- the rehabilitation of the Cité-Verte - OyomAbang road;
- the construction of the College Siantou-Acropole road ;
Still in Yaounde, contract award procedures for the following operations have been completed and works will soon start:
- rehabilitation of the Tongolo road;
- rehabilitation of «carrefour des trois statues » junction;
- rehabilitation of the Préfecture junction ;
- construction of the north axial road.
In the case of Douala,
- rehabilitation of Franqueville and Sylvani streets is well underway, while that of Gallieni street has been completed.
- rehabilitation of the Soppo Priso Avenue will soon start.
With particular regard to the Douala Infrastructure Project (DIP) which is an emergency programme for the rehabilitation of 23km of road network linking the Douala Port Authority to the industrial zones and the inter-urban network, lot No. 1 thereof is over 80% complete while Lot No. 2 has been accepted.
In the energy sector, a decisive phase has been reached in the implementation of the project to build the MEMVE'ELE dam, with the final selection of the private developer, namely the GLOBELEQ/SUD ENERGIE Consortium.
The concern to modernize and expand the telecommunications network led to the upgrading of the telephone numbering system from 7 to 8 digits, which gave sector operators the capacity of 80 million telephone lines against 8 million hitherto.
Honourable Members of Parliament,
Government's assessment of fiscal year 2007 which I have briefly presented, gives real reason for hope for our country. I must, however, mention some events which caused bereavement in Cameroon and in friendly countries. I am thinking particularly of the crash of Kenya Airways Boeing 737-800 on 5 May 2007, the floods recorded in the northern part of the country, the landslide caused by bad weather at Kekem on National Road No. 1 and the unfortunately high rate of accidents on our roads. This is the place to say that Government's civil protection policy will be strengthened in order to more effectively tackle disasters of all forms that might occur.
Mr President of the National Assembly,
Honourable Members of Parliament,
As you can notice, the Greater Ambitions that the President of the Republic has for Cameroon are steadily, methodically and surely taking concrete shape as the years go by. This is a long drawn endeavour and all constructive proposals will be welcome.
The path that will lead Cameroon into modernity must be trodden and consolidated. Its foundations are civil peace, political stability, security and a stable macro-economic framework. The goals to be attained are those recently reiterated to the Government by the President of the Republic during the Council of Ministers meeting of September 12.
Accordingly, Government's Economic, Financial, Social and Cultural Programme for the next fiscal year will focus on the three priority actions defined by the Head of State, namely:
- the consolidation of durable and sustained growth;
- the strengthening of social progress;
- the intensification of the fight against corruption and embezzlement of State funds.
Honourable Members of Parliament,
In line with these priorities, the 2008 budget programme will place special emphasis on the mobilization of non-oil revenue and on quality public spending.
On account of the current tax break, non-oil revenue mobilization will be improved mainly by enhancing the performances of the taxation and customs services.
In this context, the fight against customs fraud and smuggling will be stepped up. Thus, a specialized unit will be set up to manage the container scanner in order to optimize the collection of customs revenue.
Government will observe a cautious spending policy. Emphasis will be laid on public investments having a direct impact on poverty reduction and this will be financed from both internal resources and debt relief funds. Thus, measures will be taken to streamline payment procedures.
At the same time, payment procedures will be shortened in order to avoid making public procurements more expensive.
To enhance production and investment and hence, accelerate economic growth, the Government plans to institute an attractive tax scheme for over-arching investment projects in the agricultural, agro-industrial and low-cost housing sectors, given their effects on job- and wealth-creation. This tax scheme will provide for:
* VAT exemptions on building materials imported or purchased locally during the set-up phase of projects;
* accelerated depreciation at 1.25% of the normal rate to enable quick renewal of production potential;
* extension of the period of carry-forward of debit balance from 4 to 5 years;
* fixed stamp duty of CFAF 50,000 on share capital constituent documents.
Furthermore, there are plans to:
- extend VAT exemptions to all agricultural, livestock and fishery products as well as to inputs and fertilizers;
- reduce the cumulative credit threshold eligible to VAT refunds for SMEs that are members of approved management centers from the current CFAF 25 million to CFAF 10 million;
- exempt budding enterprises from the business licence tax during the first two years of operation;
- introduce tax administration measures whose ultimate goal is to sanitize the business environment. These include:
·reducing the taxes of enterprises that are good corporate citizens: the penalty for errors committed in good faith without the intention of defrauding the law shall be reduced from 50% to 30 %;
·suppressing VAT and income tax advance deductions at source in order to strengthen equity and economic neutrality of taxes;
·suppressing bank guarantee within the context of tax-related petitions before the Supreme Court;
·redefine the tax system of the National Stock Exchange to make it competitive.
Furthermore, if the provisions of the CEMAC Customs Code are incorporated into national laws on economic and processing systems, this will help promote and popularize them and ultimately boost the volume of trade.
Cognizant of the difficulties encountered during implementation of the Public Investment Budget linked to the designing and programming of projects, Government intends to correct the situation by setting up an autonomous structure for the design and maturation of projects.
Also, in the perspective of following up the public finance reform, Government will table before the National Assembly a draft bill to revise the State's financial regime which will modernize the framework of public finances, thus making the State budget more results-oriented rather than a mere allocation of means.
Alongside this, the public authorities will embark on a more aggressive commercial policy to improve the trade balance, while also ensuring a constant commodity supply to markets and protecting consumer interests.
To that effect, apart from strengthening regional integration, Government will strive to build or develop border markets at Kye-ossi, Abang-Minko, Moloundou, Garoua Boulai, Mbaiboum, Kousseri, Bankim and Ekok.
Measures to check scarcity will be stepped up through the setting up of a national consumer products observatory.
At this juncture, I want to stress that agriculture plays an important role in the provision of regular supplies to our markets, as it can be used to curb the inflationary trends of the prices of consumer goods as well as to make significant inroads into the sub-regional market where demand is growing steadily.
Government action in the agricultural sector will therefore consist of more resolutely implementing the rural development sector strategy with the objective of doubling agricultural and food production by 2015 in order to address the food security challenge, increase of exports, stabilizing imports and fighting unemployment.
Implementation of this strategy in 2008 will be perceived in a number of far-reaching projects, such as: support to the productive projects of grassroots communities; construction of more farm-to-market roads; support to mechanization; rural financing; the national seeds programme; support to the development of medium and large farm plantations and the major agricultural statistics programme.
In the livestock and fisheries domain, there are plans to develop non conventional livestock sectors, whose products will help to diversify the sources of animal protein. Thanks to the support of development partners, a nautical arts institute will be opened in Limbe in the near future, which will train marine fishermen and the mechanics of fishing trawlers.
Forestry and wildlife management will continue to be backed by the combined efforts of the Government and its development partners through the implementation of the Forestry- Environment Sector Programme.
Besides, as was announced by the President of the Republic at the rostrum of the United Nations in New York, during a high level meeting on climate change, a Climate Change Observatory will soon be set up in Cameroon.
With regard to tourism, the Government is determined to continue the classification of tourist establishments and to complete the rehabilitation of the hotel sector.
A far reaching project to identify and develop tourist sites will be conducted in the ten provinces, in order to increase and diversify the attractions offered to visitors.
The Government will steadfastly continue its policy to create and develop small and medium size enterprises and the handicraft sector which are major job providers. Also, as from 2008, support will be provided to thirty SME projects in the ten provinces for the processing and preservation of local staple products. Concurrently, the programme to create 12 handicraft centres will be launched with the construction of the Yaounde International Handicraft Centre and handicraft villages in Garoua and Bamenda.
Land tenure and property issues, which come upstream other policies like the agricultural or the low-cost housing policies, will be of special concern to the Government which intends to develop State land for agro-industrial use at Batschenga and Kienké and for residential purposes in Douala and Yaounde areas especially.
Like in the past, the public works sector will be at the centre of the policy to provide Cameroon with infrastructure, especially roads. This will entail, inter alia, maintaining the existing road network, opening up rural areas in order to ease transportation of products to towns, improving urban traffic and securing the borders.
More than one hundred projects are planned in this sector, including:
- the follow-up of the construction of the Ayos - Bonis stretch of the Ayos - Abong Mbang road;
- the tarring of the Abong Mbang - Doumé - Bonis road;
- the tarring of the Garoua-Boulaï - Ngaoundere road ;
- the rehabilitation of the Loum - Nkongsamba - Nkam bridge road;
- the rehabilitation of the Muteguene - Muea stretch of road;
- the rehabilitation of the Foumban - Tibati - Ngaoundere road ;
- continuation of the tarring of the Yaounde - Kribi road ( Yaounde - Olama bridge stretch) ;
- the construction of a the Kousseri by-pass road.
As concerns urban development, our objective is to enhance the economic role of towns and the living environment of urban dwellers. In the area of roads, drainage and development, planned works include:
- the maintenance and rehabilitation of urban roads in thirty secondary towns;
- the construction of the Olembe - Etoudi road on the north entrance into Yaounde as a super highway;
- the broadening of the east and west entry roads into Douala ;
- the start of the first phase of the construction work of the east loop of Yaoundé ;
- the development of 1,400 plots in Douala and Yaoundé ;
- the start of works to complete the construction of the ministerial building No.1.
In the energy sector, pending the putting in place of heavy-duty equipment that will guarantee the adequate supply of electricity power, there are plans for a short-term step-up of power generation thanks to the rehabilitation of the Edea and Song-Loulou hydro-power plants, the construction of a 225-kilovolts electricity line between Douala and Nkongsamba, the improvement of the cooling system of the Lagdo hydro-power generators to guarantee the installed capacity of 75 megawatts.
In the transport sector, safety remains the prime challenge, especially on our major highways. For this reason, in 2008, Government will again pay attention to safety measures with:
- the strengthening of road safety campaigns ;
- the sensitization of residents along major highways ;
- the stepping up of breathalyzer tests;
- the acquisition of additional radars for speed checks ;
- the crafting of a national road safety strategy backed by a multi-year and multi-sector plan of action;
- the actual launch of the production of secured driving licences .
Besides, there are plans to launch the project to rehabilitate the Douala, Garoua and Yaoundé airports.
Honourable Members of Parliament,
Government action in 2008 will also seek to enhance governance and anti-corruption mechanisms. As concerns the fight against corruption, a real strategy will be devised with the support of development partners and implemented under the CHOC (Change Habits, Oppose Corruption) Programme. Furthermore, the fight against embezzlement will be intensified.
With regard to justice, the computerization of legal proceedings will begin in courts of first instance, in order to make justice more accessible. This will be achieved by simplifying procedures as well as reducing charges and delays.
Similarly, several measures intended to make detention conditions more humane are expected and will, in the long term, profoundly change our prison system. There are plans to build new prisons and rehabilitate existing ones, better protect prison yards, reduce overcrowding in prisons, improve the hygiene, sanitation and feeding of detainees and develop vocational training and production units in prisons.
Education remains a key priority for our country. As the President of the Republic pointed out recently, progress has been made and needs to be consolidated and stimulated so as to enable more Cameroonians have access to education.
In this connection, at the level of basic education, the programme to recruit teachers will be continued with the signing of contracts with 3,500 holders of the Teachers' Grade I Certificate and additional 2,000 "PTA" teachers. Similarly, the opening of multimedia centres in primary and nursery schools will help to speed up the modernization of teaching aids. Besides, a new policy on school text books and teaching materials is in process and will be effected next year by the opening of book banks in 400 primary schools.
With regard to secondary education, apart from increasing the number of schools nationwide and improving on infrastructure and facilities, efforts to professionalize teaching, begun some years back, will be continued in partnership with the business community. Especially, some twenty new disciplines with a high job-creation potential will be introduced in the curricula of technical schools. As for teaching contents, special emphasis will be laid on the promotion of bilingualism and the introduction of learning and teaching of national languages and cultures.
The objective of professionalization is also at the centre of the higher education policy. In 2008, the first University Free Zone (UFZ) will go operational within the National Advanced School of Engineering. At the same time, the annual segment of the Support Programme to the technology and professional component of higher education will be implemented and will help to pursue:
- the rehabilitation of the Faculty of Medicine and Biomedical Sciences, University of Yaounde 1 ;
- the rehabilitation and extension of the Higher Teachers' Training College, Annex Bambili ;
- the construction of the Faculties of Medicine, Pharmaceutical Sciences and Industrial Engineering in the University of Douala;
- the rehabilitation of ENSET of Douala ;
- the construction of the Faculty of Medicine of the University of Buea ;
- the construction of the Maroua Higher Teachers' Training College.
The professionalization of teaching and the opportunities it offers in the business world requires the building of bridges with the research sector. It is increasingly established that both fundamental and applied research are making marked progress in our country and their findings must be used in economic development.
This holds true for agricultural research and medical research which the Government intends to upgrade for the good of our agro-industrial sector and health system.
The human potential of our research system and research facilities will be strengthened, inter alia, through:
-the recruitment of new researchers ;
- the launch of a Financing Support Fund, on a competitive basis, for research projects ;
- the development of partnerships with national universities on the one hand, and Cameroonian researchers abroad, on the other;
- the gradual construction of provincial research centres.
On the cultural front, the guidance and support given to artists will, like in the past, be supplemented by a drive to safeguard and promote our rich artistic and cultural heritage.
In this wise, plans are underway to restore historical sites and monuments, such as the Yaounde reunification Monument and the architectural heritage of some traditional chiefdoms. Furthermore, design studies for the construction of the Cameroon National Theatre, the National Institute of Arts and Culture and Cultural Centres in the provinces shall be conducted. In the area of culture, one of the highlights of 2008 will undoubtedly be the organization of the Maroua National Festival of Arts and Culture.
In the area of sports, besides our participation in major international competitions like the African Football Cup of Nations and the Beijing Olympic Games, the Government intends to intensify efforts to rehabilitate facilities such as the Douala, Garoua and Bafoussam stadia. Studies for the construction of new facilities will also be conducted. An example is the Olembe Sports Complex in Yaounde.
The increase in the staff strength of the health sector, begun in 2007, will continue with the recruitment of 3,000 more health personnel.
At the level of infrastructure, the number of hospitals will increase with the building of a gynaecological and obstetrics hospital in Douala and a referral hospital in Sangmelima, the rehabilitation of the Jamot Hospital, as well as the upgrading of technical support centres of the main hospitals.
Special emphasis will be laid on health services and care especially as concerns maternal and infant health.
In the case of maternal health, measures will be taken to improve emergency obstetrical and neo-natal care, the screening of gynaecological cancer and the fight against obstetrical fistula and other traumas related to delivery. Efforts will be continued to improve pre-natal consultations, care during delivery and basic care to the newly born babies.
As part of the implementation of its social policy, the Government intends in 2008 to rehabilitate six institutes for distressed young people, three childhood institutions and a socio-vocational training centre for disabled young girls.
Honourable Members of Parliament,
To successfully implement the programme outlined above, the Government has prepared a realistic draft finance law for 2008 which is based on the following macro-economic assumptions:
- a 4.5% real GDP growth rate;
- an average annual inflation rate of about 3% ;
- a budget surplus, commitment base, of about 1.5% of GDP ;
- an external current account deficit of less than 3% of GDP ;
On the strength of the foregoing, the budget estimates for fiscal year 2008 are closed off in receipts and expenditure at the sum of CFAF 2,276 billion against CFAF 2,251 billion for the ending year, representing an increase of CFAF 25 billion in absolute terms and 1.11% in relative terms.
Internal revenue estimates stand at CFAF 2,022 billion against CFAF 2,020 billion in 2007, broken down as follows:
- non-oil revenue : CFAF 1 429 billion;
- oil revenue: CFAF 593 billion, including CFAF 483 billion from SNH royalties and CFAF 110 billion from oil companies taxes;
- external resources: CFAF 254 billion, of which CFAF 146 billion from project loans and 108 billion from grants.
As concerns expenditure, priority will be given to:
- the fight against poverty, through a more allocation of resources to the priority sectors, namely: infrastructure, education, health, good governance and the fight against corruption;
- the payment of the internal debt.
Globally, the State budget for the 2008 financial year earmarks 53.91% for recurrent expenditure, 23.64% for investment and 22.45% for debt payment.
With regard to recurrent expenditure, personnel expenses increase from CFAF 479 billion to 510 billion, representing an increase of 31 billion in absolute terms and 6.47% in relative terms. This increase of the wage bill will be used to cover the new salaries resulting from recruitments in the priority sectors of education and health, ensure the levelling off of salaries stemming from the non payment of the financial benefits of promotions and advancements and the reduction of the corresponding arrears.
Public investment expenditure increases from CFAF 496 billion to 538 billion, representing an increase of 42 billion in absolute terms and 8.47% in relative terms.
Especially, the public investment budget financed by internal resources increases from CFAF 326 billion to CFAF 359 billion, that is, an increase of CFAF 33 billion in absolute terms or 10.12% in relative terms.
The expenditure programme for 2008 will receive CFAF 78 billion from HIPC funds, CFAF 80 billion from C2D and CFAF 36 billion from the Multilateral Debt Relief Initiative (MDRI).
Public debt allocations drop from CFAF 605 billion to 511 billion, which represents a decrease of CFAF 94 billion in absolute terms or 15.54% in relative term, broken down as follows:
- external debt : CFAF 103 billion, representing a 14.16% decrease ;
- internal debt : CFAF 408 billion, representing a 15.87% drop.
It is apparent that a huge share of votes, representing 17.92% of the 2008 budget, are set aside for internal debt repayments, all of which is intended to consolidate the trust of the private sector and households in the Government.
Honourable Members of Parliament,
Government's Economic, Financial, Social and Cultural Programme for fiscal year 2008, the outlines of which I have just presented, hinges on speedy economic growth without which the fight against poverty will be nothing but wishful thinking. However quality growth is likely to promote the social advancement and well-being of the populations, within a context of good governance.
Through the facilities it offers in the finance bill, this Programme heralds a new era conducive to the blossoming of our economy.
This is an option, consistent with the commitments taken by the Head of State, His Excellency Paul Biya when, during the Council of Ministers, he pointed out and I quote: "though we chose liberalization... we have not derived all the benefits from it. Most of the time, we still behave as if we are in a centralized economy. The Government should change its attitude towards the private sector, especially with regard to taxation, by making it more attractive... Measures will be necessary to promote local production and processing so as to curb imports which undermine our foreign trade". End of quote.
As can be observed, Government's Programme for fiscal year 2008 is a reflection of the Head of State's policy in which the private sector is considered as the driving force of the economy.
I remain convinced that businessmen will take advantage of the opportunities thus offered and become more active participants in the public-private partnership aimed at developing our country.
The Government will devotedly and steadfastly strive to translate into concrete reality the great ambitions that the President of the Republic, His Excellency Paul Biya has for Cameroonians.
Thank you for your kind attention.
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