The 2023 state budget report, prepared by the Court of Auditors, reveals that at the end of the year, the state’s unpaid debts amounted to CFA408.2 billion. This is CFA144.5 billion less than the previous year, where unpaid debts were CFA552.7 billion. Unpaid debt refers to financial obligations recorded but not yet paid by the public accountant. In other words, these are the government’s arrears to its suppliers for goods and services already provided but not yet paid for.

The figures for unpaid debts presented by the Court of Auditors differ from those of the Ministry of Finance. According to the Public Accounting Directorate at the Ministry of Finance, the unpaid debts at the end of 2023 stood at CFA387 billion, compared to CFA367 billion in 2022. In 2024, the state has accumulated CFA330 billion in unpaid debts, based on Ministry of Finance figures. In both cases, the level of unpaid debts recorded by the Court of Auditors or reported by the Ministry of Finance remains high, showing significant growth in recent years.

In 2018, when the reform of the Treasury Single Account was adopted, the state’s unpaid debts were only CFA33.5 billion. This reform aimed to centralize all state financial resources into a single account managed by public accountants, ensuring better alignment of expenditures with national priorities and making it easier to settle the state’s obligations.

However, seven years after the reform, the unpaid debts have increased tenfold, reaching a value in 2024 that is ten times greater than in 2018. Moreover, the reform has not helped reduce payment delays; on the contrary, the average payment delay has increased. According to the Public Accounting Directorate, the delay has grown from 110 days in 2018 to 160 days in 2024, far exceeding national standards of 60 days and the Cemac standards of 90 days.

For the Court of Auditors, the accumulation of unpaid debts has serious consequences for the economy. Judges argue that it slows economic growth, increases the cost of services, and leads to a reduction or suspension of public services. It also contributes to higher levels of corruption. Furthermore, unpaid debts lead to higher interest rates, encourage suppliers to avoid paying taxes and social security contributions, and create a budget imbalance at the end of the fiscal year.

Source: Business in Cameroon