Policy Reform Program
The Incentive Program (IP) seeks to support the government’s reform agenda with a focus on fiscal sustainability and economic governance.
The Program consists of three modalities:
- Revenue Matching Grant: Intended to incentivize improved revenue performance towards agreed revenue targets;
- Structural Reform Scheme: Supports formulation and implementation of reform-oriented actions organized under four areas: Public Financial Management; Governance and civil service reform; Investment Climate and Trade Facilitation; and Sub-National Finance;
- The O&M Facility: Provides an incentive to increase spending for O&M and improve fiscal flows to provinces.
The latest Incentive program was mutually agreed on July 12, 2012. In agreement with Government and Donors, represented by the Incentive Program Working Group, the design of the program was changed in order to allow for a more programmatic, multi-year approach and more frequent technical reviews and disbursements. Please find attached the Memorandum of Understanding for the SY1391-1393 Incentive Program (amended June 2014).