The International Monetary Fund has announced it will be approving a three year programme worth 238 Million Dollars for Togo when its Executive Board meets in April.
It follows a successful discussion with the IMF team led by Cemile Sancak to the West African Country on the Extended Credit Facility.
The programme seeks to reduce the overall fiscal deficit to ensure long-term debt sustainability; refocus policies on sustainable and inclusive growth through targeted social spending and judiciously-financed infrastructure spending; as well as resolve the existing financial sector weaknesses.
This includes a comprehensive set of reforms aimed at accelerating implementation of key reforms in revenue administration and public financial management, strengthening debt management, addressing the weaknesses in the public banks, and supporting private sector development.
To this end, the Togolese government is expected to control capital spending in the budget while improving public investment management and partnering with the private sector and technical and financial partners to continue to improve infrastructure.
It is also expected to mobilize additional revenues through further improving revenue administration and broadening the tax base, with an emphasis on overhauling the exemption and tax expenditure system.
The Programme when approved will also give the government of Togo some donor credibility thereby triggering flow of funds from donor partners.
Source: Africafeeds.com/Fred Dzakpata
