II. Operation Objectives
The program development objective of the proposed operation is to strengthen reporting and increase availability of information relevant to assessing the effectiveness of public finance, and to improve efficiency of public finance through better payroll management and moving closer to upholding the treasury single account principle. The program supports improving the efficiency and effectiveness of public finance primarily through disclosure of relevant information. Such disclosure is important for transparency, enhances accountability, and in the long run, contributes to increasing fiscal space. The proposed program also supports reducing inefficient expenditure. The policy reforms supported by the proposed operation are aimed at enhancing resilience of the country by putting in building blocks to encourage participation of relevant actors and public at large in informed policy discussions.
III. Rationale for Bank Involvement
The reforms supported by the operation are steps towards achieving the development objective, and the risk that they may not be followed through exists. On the other hand, the Bank can strengthen the momentum for the reforms and improve the chances of their success.
The International Monetary Fund has reached an agreement at technical level with the government for a second Rapid Credit Facility and a six months staff monitored program, which will be considered by its Board in November 2015. Other partners, including the African Development Bank, European Union and Agence Francaise de Developpement are providing budget support to the government also.