State Consolidation Development Program 2

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The objective for the Second State Consolidation Program Project for Central African Republic is to support the reestablishment of basic fiscal management and transparency, as well as economic recovery. The operation is structured around two pillars. (1) Reestablishing basic fiscal management and transparency pillar will increase fiscal revenue, improve wage-bill management, and improve budget control and transparency. (2) Supporting economic recovery will support a pro-poor, post-transition reform agenda that reinvigorates drivers of economic growth in critical sectors, including transportation, agriculture, and telecommunications/ICT. Since these programmatic reforms represent both upstream and downstream interventions, the successful implementation of this ambitious program will require time, assistance, and flexibility. The two pillars have a positive influence on each other as improved fiscal management and transparency will lead to improved spending with a positive impact on critical areas such as agriculture, transportation and ICT. Conversely, economic recovery is expected to have a positive impact on revenues which will contribute to improve basic fiscal management.