Republic of Congo First Fiscal Management and Inclusive Growth DPF

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The development objective of the First Fiscal Management and Inclusive Growth Development Policy Financing for Republic of Congo is to support the government’s efforts to: (i) strengthen fiscal sustainability and governance through improved revenue mobilization and public financial management; and (ii) create the conditions for inclusive and sustainable growth. Given Congo’s past and current fiscal challenges (including low domestic revenue mobilization and debt distress), strengthening domestic revenue mobilization and the Public Financial Management (PFM) system through the first pillar is critical to reducing the country’s debt burden, building resilience to future shocks, and expanding fiscal space to fund investments in infrastructure and human capital needed for sustainable growth. The reforms under the second pillar represent some of the key foundations for sustainable growth, with actions to improve the business environment, enable the development of new growth sectors (such as the gas sector), and improve the delivery of infrastructure services (such as power and water supply). It also supports reforms to accelerate human capital development, itself a key constraint to diversification and sustainable growth, by addressing critical shortcomings in the delivery of basic public services throughout the country, thereby making growth more inclusive.