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Zambia - Public expenditure review (Vol. 2) : Main report (Inglês)

The central objectives in restructuring public expenditures are to restore economic stability and growth with equity by the use of public expenditure as an effective and efficient policy instrument. The strategy for achieving these objectives include: (i) sharp expenditure reductions; (ii) significant reallocations to support priority sectors and programs; and (iii) strengthening management of public expenditure for effective implementation of the allocative decisions. This report considers it essential to establish a sound macro-economic framework in which both the short-term fiscal stabilization and long-term growth issues can be effectively addressed. In this regard, bringing inflation under control should be considered as a necessary condition for effective adjustment of expenditure composition. The report also considers it imperative for government to take actions on a number of fronts to ensure that the allocative decisions are effectively implemented, that the expenditure audits are enforced in order to effect expenditure control, and that it is essential to integrate donor counterpart funds in a general budgetary framework to ensure better budget performance.

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