The staff report for the First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF) for the Islamic Republic of Mauritania explains the macroeconomic outlook and fiscal policy. Despite a substantial oil revenue shortfall, the fiscal deficit target was met and significant reserves were maintained in the oil fund. The prudent monetary stance contributed to strengthening confidence in the ouguiya and reining in inflation. Mauritania needs to continue to mobilize concessional support to finance its poverty reduction strategy.
This report assesses the Observance of Standards and Codes on Fiscal Transparency for the Islamic Republic of Mauritania. During the past few years, Mauritania has made considerable efforts to improve fiscal transparency. The withdrawal of the government from commercial activities and the banking sector has helped to clarify the role of government in the economy and reduced quasi-fiscal activities. The private sector has a new investment code and is benefiting from simplification of the tax system. The legislative framework underlying the budget is also complete.