THE EFFECT OF PUBLIC INVESTMENT BUDGET EXECUTION ON ECONOMIC GROWTH IN CAMEROON: A BUDGETARY SIGHT

Abstract

In 2009, the Cameroonian authorities adopted a long-term development vision, one of the major challenges being strong and equitably distributed growth. Now in the second phase of this vision, the problem of growth remains with the same sensitivity. In an attempt to achieve the growth target, set out in the National Development Strategy, they have placed particular emphasis on monitoring the implementation of the PIB. This article discusses the implications of PIB implementation for economic growth in Cameroon. Using ARDL modelling on quarterly data from 2012 to 2020, we show that the increase in public investment expenditure execution results into a growth deterioration in the first quarter, but from the third quarter onwards we start to see an improvement in growth of 0.057 points following a one-point increase in public investment expenditure execution. It is therefore recommended to put in place a strategic committee be set up to monitor and follow up on the recommendations made at the various PIB monitoring meetings, with the goal to subsequently improve the level of execution in order to benefit from these effects on economic growth.