The government’s revised Medium-Term Fiscal Program emphasizes higher capital spending and gradual revenue increases, aiming to reduce the fiscal deficit from 6.2% of gross domestic product (GDP) in 2023 to 3.7% by 2028.
“The revised consolidation plan remains ambitious… but it will be important to ensure that social protection programs, universal health care coverage, and higher education outlays are appropriately enhanced,” the IMF said.
The multilateral lender said increasing government revenues “remains critical to sustain a credible medium-term fiscal consolidation strategy, rebuild buffers, and create space for poverty reduction efforts.”
“Tax administration improvements should be supplemented with tax policy changes, notably to improve the efficiency of value-added tax and broaden the tax base,” it advised.
The IMF acknowledged the country's steady performance despite external pressures, noting a GDP growth slowdown to 5.5% last year due to global shocks and inflation. However, it added that growth is projected to rebound to 6% in 2024 — slightly lower than its earlier projection of 6.2%.
