Thursday, 17 July 2014
How will Cameroon finance pay rises?
Minister of Finance Ousmane Alamine Mey has explained that Cameroon spends CFA820 billion (US$1.69 billion) a year on government workers’ salaries.
President Paul Biya’s 5% increase in these monthly salaries will increase government spending by CFA30 billion (US$62 million) in the second half of 2014 and increase this year’s total expenditure on civil servants’ wages CFA850 billion (US$1.75 billion).
Mey did not explain, however, how the government intends to pay for the additional CFA30 billion. This is worrying because the government’s 2014 budget has already been concluded.
Menas Associates believes that the additional income will come from increasing oil revenues. Fortunately, Cameroon is expected to witness a surge in oil production in 2014, from 24 million to 30 million barrels as new oil fields come on stream.
Increased oil production could, therefore, provide the necessary additional revenue to finance this year’s 5% pay increase for the civil servants.
For more news and expert analysis about Cameroon, please see Cameroon Politics & Security.
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