YAOUNDE, November 27, 2025 – Cameroon’s budget deficit for 2026 is projected to more than double due to rising government spending aimed at supporting economic activity amid continued global instability, according to a draft finance bill presented to Parliament on Wednesday. The sharp increase underscores the country’s vulnerability to external shocks, including price volatility in essential imports such as fuel, wheat, and automobiles.

Key Figures of Cameroon’s 2026 Budget

The draft bill projects the overall budget deficit at 631 billion CFA francs ($1.11 billion), up from 309.9 billion CFA francs in 2025. Consequently, the government’s total financing needs for 2026 are estimated at 3,104.2 billion CFA francs, compared with 2,326.5 billion CFA francs this year.

The proposed 2026 state budget totals 8,816.4 billion CFA francs, marking a 14% increase over 2025, primarily due to higher expenditures on:

• Personnel costs
• Goods and services
• Transfers and social programs
• Debt repayment

Given that President Paul Biya’s ruling CPDM party holds a majority in both houses of Parliament, the draft budget is expected to pass without major obstacles.

Economic Outlook for 2026

Cameroon’s government anticipates economic growth to reach 4.3% in 2026, up from an estimated 3.9% in 2025. This growth is expected to be driven largely by strong performance in the non-oil sector, while the oil sector is projected to contract slightly by 0.1%. Inflation is expected to ease slightly, declining by 0.2% from the current 3.2%, providing some relief for households and businesses.

Financing the 2026 Budget

To cover the projected financing gap, Cameroon plans a combination of funding sources, including:

• 1,000 billion CFA francs from external borrowing
• 826.7 billion CFA francs in project loans
• 589.7 billion CFA francs in bank financing
• 400 billion CFA francs through the issuance of government securities
• Additional budget support and exceptional financing

The government has increasingly relied on borrowing in recent years to fund infrastructure projects and plug budget shortfalls, as Cameroon contends with liquidity challenges and structural economic reforms aimed at broadening the tax base.

Cameroon’s Economic Context

Cameroon is the largest economy in Central Africa, with key sectors including oil and gas, cocoa, and timber. Despite robust non-oil growth, the economy remains highly exposed to external shocks and global price fluctuations. Analysts highlight that managing the budget deficit and improving fiscal sustainability will be critical to maintaining economic stability and supporting infrastructure development.