Burkina Faso: Second Review Under the Extended Credit Facility Arrangement and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Burkina Faso

This paper presents Burkina Faso’s Second Review under the Extended Credit Facility (ECF) Arrangement and Financing Assurances Review. Burkina Faso’s performance under the program has been satisfactory. The authorities met all quantitative performance criteria, all indicative targets but one, and most structural benchmarks. The remaining structural benchmarks were implemented with delay. The authorities have put renewed focus on fiscal governance and transparency, particularly to improve procurement and treasury deposit account management. The authorities are progressing in their structural reform agenda, including on fiscal governance, while increasing social and development spending in a difficult context. The authorities remain committed to gradually reducing the overall fiscal deficit to three percent by the end of the ECF arrangement. Their fiscal consolidation path builds on further mobilizing domestic revenues, while controlling expenditures. This includes continued efforts to bring the public sector wage bill to a sustainable level and further advancing the energy sector reform. The volatile security situation continues to weigh on economic activity, especially gold mining, which remains a vital sector for the economy.