The Executive Board of International Monetary Fund (IMF) yesterday approved US$81.2 million for Zambia’s poverty reduction programmes under the Poverty Reduction and Growth Facility (PRGF) arrangement.
The release of the funds will bring the total disbursements to US$262.5 million this year.
This is contained in a statement issued by first secretary for press at the Zambian embassy in Washington DC, Ben Kangwa.
The executive board of the IMF yesterday also concluded the 2009 Article IV consultation with Zambia.
IMF deputy managing director and acting chairman of the executive board, Murilo Portugal, commended the Zambian government for the country’s solid economic performance under the PRGF-supported programme.
“Their prudent macroeconomic management was demonstrated by the Zambian economy’s resilience to the global economic crisis,” Mr Portugal said.
He also noted that Zambia’s 2010 budget is well-balanced and that authorities are aiming at creating fiscal space for poverty reducing expenditure and infrastructure investment to sustain robust and diversified growth.
Amongst others he mentioned that the authorities will review tax policies and administration,with a view of broadening the tax base and reinforcing tax collection,adding that the upward trend in the wage bill needs to be reversed to free resources for other priority outlays and social spending.Further reforms to enhance efficiency in Government spending are also needed he said.
He said the floating exchange rate regime and reserve money-based monetary programme have served the country well and that Government’s plan to transition an inflation targeting framework should be premised on the establishment of necessary preconditions.