Improved capital structure in private banks Increased resilience of the financial system Financial restructuring of state banks completed No overnight borrowing Extremely high CARs Strong budget consistent with primary surplus target of 6.5 %of GNP Declining debt to GNP ratio Increased resilience thanks to floating exchange rate regime
Appropriate recording of investment expenditures in the budget Ambitious targets and conservative assumptions Substantial adjustment efforts Conservative assumptions on the yield of the measures Inclusion of in-kind credits in the primary surplus also implies a further adjustment in the order of 0.5% of GNP Increased transparency Budgetary discipline
Revenue enhancing measures (1.86 % of GNP) Raise property and motor vehicle taxes Increase the clawback on revolving fund revenues Raise revenue through disposition of state property Eliminate lags in corporate income tax collection Improve revenue collections in social security institutions Improve collection of tax arrears through Tax Peace Plan Expenditure reducing measures (2.53 % of GNP) Limit current expenditures Limit the real growth of health expenditures by preventing misuse Contain the growth of personnel expenses Rationalize the investment program Limit hiring to 35,000 in public employment
In order to keep the program on track and to ensure a smooth rollover of public debt, central government budgetary appropriations for discretionary spending, excluding defense expenditures, will be blocked. Annual savings of at least 1.2 % of GNP
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