"Increasing domestic resource mobilization and improving public financial management will be essential for fiscal consolidation. The modernization of tax administration, including elimination of ad hoc custom duty exemptions, will be of paramount importance to minimize revenue leakages. To keep spending in line with projected resource flows and avoid a recurrence of spending overruns, the authorities will carry out an analytical audit of the expenditure commitment process and put in place monthly ministerial expenditure commitment plans.
"The monetary stance will need to remain sufficiently tight throughout the remainder of 2006 to prevent a spillover of energy-related price increases into general inflation. Monetary policy implementation will be strengthened through the development of indirect instruments. Madagascar's exchange rate regime is broadly appropriate, particularly given the economy's vulnerability to exogenous shocks.
International Monetary Fund (IMF) is an organization of 184 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty.
International Monetary Fund
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