|Approval Date||21 Nov 2019|
|Signature Date||25 Nov 2019|
|Planned Completion Date||31 Dec 2020|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The Resource Mobilisation and Reform Effectiveness Support Programme (PAMRER I) is the first phase of a series of three programme-based budget support operations covering the 2019, 2020 and 2021 financial years, with an overall indicative financing package of EUR 62.5 million. It presents the programme’s multi-year framework and provides a list of reforms considered to be the indicative triggers for the second (PAMRER II) and third (PAMRER III) phases. The programme seeks to address two major issues, namely: (i) Increased mobilisation of domestic resources to finance PSE projects and reforms in the long term; (ii) Acceleration of the implementation of strategic reforms and projects geared towards enhancing investment attractiveness. It comprises therefore two complementary components, namely: (i) Domestic Resource Mobilisation and Broadening of the Tax Base; and (ii) Implementation of Strategic Reforms and Projects to Enhance Investment Attractiveness. The programme aims to meet the following outcomes:(i) improvement in tax administration by increasing the Doing Business score from 48.08 points in 2018 to 50 points in 2022;(ii) broadening of the tax base by increasing the tax burden from 15.3% of GDP in 2018 to 20% in 2023, as well as a Global Forum on Transparency and Exchange of Information for Tax Purposes rating of “largely compliant” following the inclusion of new standards on beneficial ownership; and (iii) enhancement of the country’s attractiveness as an investment destination through an increase in foreign direct investments (FDIs) from 3% of GDP in 2018 to 6% in 2022.
The overall objective of the programme is to strengthen domestic resource mobilisation and promote strategic reforms to attract investments.
The direct programme beneficiary is the Government of Senegal. However, PAMRER I will benefit the entire population of Senegal. A better adapted fiscal policy should increase Government’s resources and help to finance public services, thus improving the living conditions of the population. A more efficient tax administration should lower transaction costs for taxpaying individuals and reporting companies. This will be a direct benefit to these entities and, at the same time, help to improve tax compliance as well as the business environment. Lastly, the effective implementation of PSE strategic reforms and projects should help to attract investments and create jobs.
African Development Bank
GOUV. DU SENEGAL /MINISTERE DE L'ECO. DES FINANCES ET DU PLAN
|Last Update||20 Mar 2020|