This report addresses key issues on macroeconomic stability, efficient allocation of public expenditures, public sector staffing, and public finance management. The fiscal sustainability analysis carried out for this report indicates that serious adjustments will be needed to improve Burundi's fiscal stance
reforms that are complicated by the challenges of rebuilding the country's social and physical infrastructure after years of conflict. The report also examines the measures necessary to establish a sound public expenditure management system aimed at promoting fiscal discipline and the efficient and effective operational performance of the public sector to ensure appropriate allocation of resources based on agreed strategic priorities, with particular attention to key economic and social sectors (education, health, and infrastructure). The report also identifies constraints to effective implementation of Public Finance Management (PFM) reforms and defines the elements of a short and medium-term action plan to overcome these constraints. The action plan matrix, prepared in close cooperation with relevant Government departments and other stakeholders operating in Burundi, proposes a set of concrete recommendations for public spending reallocations and priority reform measures.