Central African Republic - Economic and Financial Reform Support Programme

The Economic and Financial Reform Support Programme (PAREF) is an extension of the Emergency Support Programme for Emerging from the Crisis and Economic Recovery (PUASCRE). PUASCRE has supported the transitional government in restoring the capacities of the financial and social administrations. The PAREF will take the form of a Programmatic Support Operation (PSO) covering the 2016 and 2017 fiscal years. It incorporates more structuring measures to help relaunch the economy and improve public finance management. The Programme will have an impact on the country's economic growth and social situation. The programme will contribute to (i) improving tax collection; (ii) improving transparency and the budget execution rate, especially in the social sectors and; (iii) consolidating economic growth through an improvement of the business climate and governance in productive sectors (agriculture, forestry and mining). The programme will have two components, namely (1) Improvement of tax revenue mobilisation and public expenditure management and (2) Improvement of the business environment and governance in productive sectors. The two components are complementary and help revive economic growth in CAR. Tax revenue mobilisation and improved public finance management will enable government to gradually create the fiscal space to support economic recovery.