Ten-year Horizon Development Framework - Ministry of Finance and ...

• Capacity Expansion: Enhancing production capacity in all sectors of the economy by promoting
public, private and foreign investment
• Human Resources Development: Strengthening and upgrading primary, secondary and tertiary
education institutions by maximising available opportunities and enhancing the access to education,
while improving quality and relevance of education at all levels Providing high quality,
equitable, cost effective, modern and sustainable heath care services
• Infrastructure Development: Building modern, high quality and efficient infrastructure facilities
to expand access to markets Maintain and rehabilitate existing road network, construction of
highways, increasing the coverage of safe drinking water, upgrading the railway sector, expanding
the supply of electricity, transmission and distribution accelerating ongoing power sector reforms,
and developing alternative energy to reduce the cost of power while taking into consideration the
social problems and environmental implications and transforming port and airport sectors as an
air-sea hub and logistic centre
• Improving Technology and Research and Development: Promoting application of modern
technology and undertaking research and development activities in the country to enhance competitiveness
1622 Macroeconomic Policies and Strategies
• Fiscal Policy
Fiscal: Turning around revenue deficit to a surplus through expanded tax base, higher non tax
revenue efforts from state enterprises and cost effective public expenditure management system
together with prudential debt policy, increasing public investments largely through financing from
concessionary foreign sources and long-term funding services and phasing out budgetary transfers
to state enterprises Public expenditure will be programmed within a medium-term and sector
budget framework to improve efficiency and productivity Tax administration as well as policy
environment will be directed to create simple and efficient system of taxation Overall macro fiscal
policy framework will be guided within the Fiscal Responsibility Act of 2002
Monetary and Financial: Avoiding demand-fuelled inflation, ensuring required credit growth
for sustained economic activity and strengthening financial sector stability Further strengthening
the regulatory framework in the banking, insurance and financial services Introducing measures
to reduce high interest spread, prudential measures to banking & financial institutions, strengthening
state banks as strategic state enterprises to improve their financial viability and improve their
competitiveness
• Policies to Strengthen Structure of the Economy
Market Development Strategy: Strengthening both product and factor markets to ensure efficiency
and competitiveness of the economy Major markets requiring improvements are the land,
labour and financial markets
Infrastructure Development Strategies: The country requires an efficient and fast growing
infrastructure system spread throughout the economy to help achieve regionally balanced growth
Public sector institutions, which supply vital services such as power, water, transport, and other
services, are important service providing institutions of the government Most of those institutions
are monopolies, yet the quality and adequacy of services and financial position are very poor
Hence, those institutions are earmarked for strategic reforms
Public Service Development Strategies: The public sector will engage in its critical role as
facilitator and pacesetter The entire perspective of the public service will have to focus on learning
to anticipate change, include development and meet the demands of the future in innovative ways
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