Cameroon has acknowledged that its growing use of Treasury advances to finance off-budget spending is contributing to the accumulation of unpaid government bills, highlighting a structural weakness in the country's public financial management.
In its 2027-2029 Economic and Budgetary Programming Document (DPEB), the government said it intends to reduce reliance on these cash advances in an effort to slow the buildup of outstanding payment obligations, commonly referred to as the floating debt.
As of the end of March 2026, outstanding payment arrears stood at CFA1.026 trillion ($1.8 billion). Of that amount, CFA452.5 billion, or about 44%, consisted of invoices that had remained unpaid for more than three months.
The Autonomous Sinking Fund (CAA) noted, however, that this figure was still based on estimates as of the end of December 2025, pending the consolidation of payments made during the first quarter of 2026.
According to the Ministry of Finance, part of the problem stems from "the multiplication of off-budget expenditures too often paid through Treasury advances." The statement suggests that payment delays are not simply the result of temporary cash shortages. They also reflect the way some government spending is authorized, financed and later incorporated into the budget.
Spending Before Budget Regularization
Under Cameroon’s normal public spending process, expenditures must first be covered by budget appropriations before they are committed, verified, authorized and paid. Treasury advances allow the government to release funds more quickly for certain expenditures, provided they are later regularized through the budget and accounting system.
The mechanism is not inherently irregular. It can be used to finance urgent expenditures or payments that cannot wait until the full budget process is completed.
The problem arises when Treasury advances become a routine financing tool, when the corresponding budget appropriations are insufficient or when the regularization process is delayed.
In such cases, spending is executed immediately while its final budget recognition is postponed. The government must later identify the necessary appropriations or delay other payments, creating bottlenecks in the expenditure chain and adding to the stock of unpaid invoices at the Treasury.
The DPEB does not estimate how much of the CFA1.026 trillion in arrears is directly attributable to Treasury advances. Outstanding payment obligations also include expenditures that were properly authorized but have yet to be settled. Even so, the government explicitly identifies off-budget spending as one of the main drivers behind the continued accumulation of arrears.
Floating Debt Continues to Rebuild
The government's assessment comes despite significant efforts to reduce the floating debt. According to the DPEB, Cameroon allocated CFA232.5 billion in 2024 and another CFA230.4 billion in 2025 to clear outstanding payment obligations, for a combined CFA462.9 billion over two years. Despite those payments, the government acknowledges that the floating debt "continues to rebuild in certain areas."
It points to several recurring sources of pressure, including underbudgeted public lease agreements, rent obligations under some public-private partnerships and the government's assumption of debts owed by public entities.
In 2025, Treasury payment arrears and other unstructured debt monitored by the CAA accounted for CFA715.6 billion of the government's financing and cash management needs. That amount came on top of a budget deficit of CFA350.2 billion, debt amortization totaling CFA706.8 billion and CFA49 billion in VAT credit reimbursements.
These figures suggest that unpaid bills have become more than an accounting issue. They now absorb a significant share of the government's available liquidity, reducing its capacity to finance new spending.
Suppliers Shoulder the Financing Burden
For businesses, payment arrears represent goods already delivered or services already provided but not yet paid for. When delays persist, suppliers effectively end up financing the government.
Companies must continue paying employees, subcontractors, taxes and banks while waiting for payments from the public sector. The result can be cash flow pressures, delayed investment and greater reliance on bank financing. Those financing costs may ultimately be reflected in future public procurement contracts. Contractors expecting long payment delays may build higher borrowing costs, exchange rate risks or contract uncertainty into their prices.
The accumulation of payment arrears therefore turns a government liquidity problem into a financial risk for companies doing business with the state. Small and medium-sized enterprises are particularly vulnerable because they are generally less able than larger firms to absorb months of unpaid invoices.
A Question of Budget Transparency
The repeated use of Treasury advances also raises concerns about budget transparency. When expenditures are executed outside the normal budget timetable or procedures, they may not immediately appear in reported budget execution even though the government has already incurred the financial obligation.
That makes it more difficult to assess the true cost of public policies and weakens Parliament's, oversight institutions' and citizens' ability to monitor implementation of the approved budget. It can also shift spending decisions from one fiscal year into the next.
Over the next three years, the government says it intends to reduce the use of Treasury advances and, in doing so, limit the buildup of new payment arrears as part of broader efforts to strengthen public finances.
However, the DPEB does not specify the current volume of Treasury advances, set future ceilings or identify the ministries making the greatest use of the mechanism. Nor does it establish measurable reduction targets or provide a breakdown by ministry, spending category or beneficiary.
Baudouin Enama