Chad-DPO Fiscal Consolidation Program

closed

Closed

The development objectives of the Fiscal Consolidation Program Support Grant (FCPSG) Project for Chad are to help maintain stability on the fiscal and macroeconomic fronts including protecting critical government’s programs and setting the basis for medium term reforms. The operation is designed to assist the authorities in addressing the fiscal and external impacts of large exogenous shocks while continuing to develop and implement critical public financial management (PFM) reforms and improvements in the business climate necessary to bolster the competitiveness of the nonoil economy. The operation has three objectives. First, it provides urgently needed financial assistance to cover the fiscal and external gaps caused by the decline in oil prices to maintain macroeconomic stability as the authorities intensify their fiscal consolidation efforts. Second, it ensures that the progress in macro-fiscal management that allowed Chad to reach the enhanced heavily indebted poor countries (HIPC) completion point will be maintained and further strengthened to promote continued growth and poverty reduction. Third, reforms included in this operation support increased PFM transparency and the development of the nonoil economy. In addition to the support for fiscal consolidation, this development policy operation (DPO) will provide financial resources which contribute to maintain minimum levels of pro-poor expenditures as appropriated in the finance laws for 2015 and 2016. The operation supports three pillars: pillar one: broadening the tax base; pillar two: improving the rationalization of public spending and transparency in public resource management; and pillar three: improving new business registration.

FY17 - Industry, Trade and Services,FY17 - Public Administration

World Bank Group

Project

Oil and Gas, Government