Country Report Djibouti November 2006

Economic policy: The government starts the 2007 budget process

In early October the minister of the economy, Ali Farah Assoweh, presented the first outline of the 2007 budget to the Council of Ministers. No details of proposed budgetary measures have yet been published, but Mr Assoweh said that the government's priority areas would continue to be education and health, which he expected to account for 44% of government spending. The IMF has been concerned for some time that the government is not taking action to control the budget deficit and to tackle structural reforms, and has twice postponed a decision on Djibouti's application for a new poverty reduction and growth facility (PRGF), which was originally due to be settled in 2005 (February 2006, Economic policy).

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