Component 1: Economic Management
Objective : To develop a Macroeconomic and Fiscal Framework and Improve the predictability and reliability of revenues and expenditures through the development of sound planning methodology.
This component includes the implementation of a Macroeconomic Framework, to:
- Support the government’s management of inflows of funds through its domestic revenue collection and donor financial support
- Improve the GoSL’s ability to manage increased donor support for better impact on the domestic economy
- Ensure the financial resources are channeled in an efficient and effective manner that supports the operationalisation of the NDP.
In addition, through this component the budget process will be awarded credibility through reliable revenue and expenditure data with the development of a sound budget planning methodology to increase the reliability of core financial data and provide more in-year and future predictability in budget execution.
Finally, it will involve strengthening macroeconomic systems to improve the quality of the macro-fiscal planning and forecasting systems. Fiscal planning will lead to the development of fiscal frameworks such as the Medium Term Fiscal Framework (MTFF) and Medium Term Expenditure Framework (MTEF).