Following a visit to Mali IMF staff have issued a preliminary report of their discussions and their view of the economic position of Mali. Mali’s economy grew by 7.2% in 2014 and real growth is estimated to be 5% in 2015. The end-2014 tax revenue target was not met as revenue was hit by weaknesses in customs administration. This together with higher government spending and a delay in budget support led to a wider fiscal deficit than planned.
From the beginning of 2015 the government has carried out measures to introduce results-based management in the tax and customs directorates. These measures have put tax revenues back on course during the first quarter of 2015. The measures have been welcomed by IMF staff.
Mali’s government is to submit a supplementary budget to the National Assembly targeting an increase in tax revenue by 1.8% of GDP and a fiscal deficit of 5% of GDP. This will permit room for extra government spending on certain essential defense programs, increases in public sector pay and payment of arrears due to suppliers.