Chad - Emergency Fiscal Consolidation Support Programme (PUCB)


Project Summary

Approval Date 24 Nov 2017
Signature Date 29 Nov 2017
Planned Completion Date 31 Dec 2018
Last Disbursement Planned Date 31 Dec 2018
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 15110
Commitment U.A 46,000,000
Status Completion

Project General Description

The Emergency Fiscal Consolidation Support Programme (PUCB) is a Crisis Response Budget Support (CRBS) which is in keeping with the overall framework of concerted, coordinated and complementary interventions of the Technical and Financial Partners (TFP) in order to urgently revive economic growth and safeguard social spending in the countries of the Economic and Monetary Community of Central Africa (CEMAC), including Chad. Indeed, as the case of the majority of CEMAC economies, the Chadian economy has been severely affected by the drop in oil prices, which has caused, since 2014, a significant deterioration of the country's economic and budgetary performance. This situation has a very negative impact on social spending and threatens the implementation of the 2017-2021 National Development Plan (PND) , which is essential for Chad's economic diversification process and its progressive exit from the situation of fragility. The PUCB comprises two complementary components intended to create a fiscal space that will initially contribute to the financing of economic recovery and social spending, and subsequently implementation of the programme to diversify the economy, which is essential to the country’s gradual emergence from its situation of fragility. The PUCB’s two components are: (i) improved domestic resource mobilization ; and (ii) more effective public resource management.

Project Objectives

The PUCB’s objective is to consolidate budget management through the domestic resource mobilization and improved public expenditure management in order to create a conducive fiscal space for economic recovery and safeguard social spending. The expected outcomes of this CRBS are: (i) a tax revenue/non-oil GDP ratio that will rise from 7% in 2016 to 8.2% in 2018; (ii) a wage bill/non-oil GDP ratio, expected to fall from 7.5% in 2016 to 6.9 % in 2018; and (iii) a debt service/revenue ratio, expected to fall from 40% in 2016 to less than 35% in 2018.

Beneficiaries

Chad’s entire population will benefit from PUCB. Also as a result of PUCB, the Chadian administration’s capacity will be built in three key areas of Public Finance Management (PFM); namely: (i) domestic resource mobilization; (ii) wage bill control; and (iii) public debt management. Furthermore, by addressing the issue of domestic arrears in its sub-component on improving public debt management, PUCB will have a positive impact on private sector enterprises and on the social sectors.

Participating Organization

Funding
Fragile States Facility
Implementing
Ministry of Finance and Budget (MFB)

Information

IATI identifier 46002-P-TD-KA0-007
Last Update 25 Jul 2019

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Contact Details

Name LUMBILA Kevin Numbi
Email k.lumbila@afdb.org

Geographic Location

Country Chad