IMF Urges Government To Continue Its Structural Fiscal Reforms

Moving towards a risk-based approach to collect customs revenues would facilitate timely customs clearance.

The effectiveness of revenue collections can be bolstered by fully implementing the single Tax Identification Number and enacting the Tax Administration and Procedures Act. IT systems should also be upgraded.

The planned submission of the Medium-term Fiscal Framework to parliament together with the 2019 budget is welcome.

The effectiveness of the recently established Cash Management Committee should be further enhanced by preparing cash flow forecasts periodically, and the stock of arrears be reviewed and cleared.

Going forward, the authorities should also consider introducing fiscal rules.

The Ministry of Finance (MOF) is planning to issue a regulation requiring state owned enterprises to submit timely financial information, aimed at strengthening oversight over state-owned enterprises.

The MOF should also put in place a framework to assess financial risks pertaining to Public-Private-Partnerships.