Budgeting Workshop Module I

• This workshop aims to build capacity for actors in the budgetary chain.
• Workshop for regional and local authorities in the North-West Region.
• The workshop focuses on the implementation of the performance-based budget PROGRAMME.
• The workshop module is "Module I".
• Module I covers the legal and budgetary framework for introducing performance-based budgeting.
• The workshop is held in Buea from April 2-4, 2025.
• The workshop is under the auspices of NASLA - Buea.
• The general objective of Module 1 is to understand the legal and regulatory framework of performance-based budgeting.
• Module 1 aims to provide actors in the budgetary chain with relevant legal references.
• Module 1 aims to define the legal framework for performance-based budgeting as a public finance management tool.

Terms of Reference for Statutory Texts

• Setting up a performance-based budget programme is regulated by texts with legal basis.
• The legal basis are directives from the harmonised public finance management framework of CEMAC.
• CEMAC's framework is inspired by international best practices.
• Key questions include:
  • What laws provide the legal framework for the performance-based budget programme?
  • What is the scope of the laws that provide the legal basis?
  • What is the scope of the circular within the legal framework?

Legal Framework in Cameroon

• In Cameroon, the performance-based budget programme is legally governed by specific laws and regulations concerning regional and local authorities.
• Law No. 2018/012 of July 11, 2018 relates to the financial regime of the State and other public entities.
• Law No. 2019/024 of December 24, 2019, is on the General Code of Regional and Local Authorities.
• The Financial Law

Law No. 2018/012 Details

• Law No. 2018/012 of July 11, 2018, updates provisions of Law No. 2007/006 of December 26, 2007.
• Law No. 2007/006 concerns the financial regime of the state (now repealed).
• The legal source of the performance-based budget program is in the provisions of Articles 1, 2, 3, 16, 22, 30, 31, 32, etc. of Law No. 2018/012 of July 11, 2018.
• Law No. 2018/012 determines the conditions for adopting the medium-term taxation policy for all public finances.

Law No. 2019/024 Details

• Law No. 2019/024 of December 24, 2019, is on the General Code of Regional and Local Authorities.
• It aligns with Law No. 2018/012.
• Law No. 2019/024 specifies details in its Fifth Book, particularly Articles 389 and 409.

Scope of the Budget

• The budget describes the resources and expenses
• The budget describes resources and expenses of the REGIONAL AND LOCAL authority authorized by the deliberative ORGAN for a financial year.
• The budget presents all programmes contributing to economic, social, health, educational, cultural, and sporting development.

Consistency and Grouping

• The budget and programmes of the council must align with the economic and financial objectives of the State.
• Municipal budgets and programmes must align with the programmes of their respective regions.
• Credits opened in the council's budget are grouped according to the "programme".
• The "programme" groups credits to implement an action/coherent set of actions with specific, linked objectives.
• Objectives are defined according to general interest and expected results and accompanied by performance indicators.

Council Programs and National Strategy

• Council programs are part of the national development strategy.
• Council programs are part of sectoral strategies defined at the national level.
• Council programs are consistent with regional programs.
• Council programs are consistent with previously drafted medium-term framework documents.

Alignment of Regional and Council Programs

• Regional programs are part of the national development strategy.
• Regional programs are consistent with sectoral strategies defined at the national level.
• Regional programmes are consistent with council programmes as well as medium-term framework documents.

Financial Law Objective

• According to Article 12 of Law No. 2018/012 of July 11, 2018, in The Financial Regime of the State and Other Public Entities.
• The finance law aims to determine the State's revenue and expenditure, define budgetary/financial balance, adopt the State budget, and report on implementation.
• The finance law takes into consideration the economic equilibrium and programme objectives/results.
• Revenue of regional/local authorities are public funds, similar to those of the state.

Circular from the Minister of Finance

• The circular from the Minister of Finance provides instructions on execution, monitoring, and control of the budget.
• It applies to the State, public administrative establishments, regional/local authorities, and other subsidised organisations.
• The circular is the last legal instrument for the framework of the performance-based budget programme of the RLA.
• It is a reference document.
• The content is relatively stable from one financial year to the next.
• The target audience is program managers, authorising officers, project owners, financial controllers, public accountants, and other actors.
• It applies to the "chain" of execution, control, monitoring, and evaluation of the state budget and RLAS.
• Defining the legal framework is a key issue for managing local public finance and integrating the performance-based budget programme.

Decentralization and Future Module

• Having made clear the legal basis for both the decentralization policy and the performance-based budget programme, Module II can be proceeded with.