Macroeconomic and Policy Planning Unit

The Macro Policy Unit (MPU) is responsible for:

• Fiscal and Economic Analysis
• Preparation of the Macro Framework
• Monthly Internal Monitoring Committee (IMC) meeting
• Debt Management and Reporting
• Monitoring of the State-Owned Enterprises
• Administration of duty-free concessions

Fiscal and Economic monitoring and Analysis

The compilation of fiscal and economic data forms the basis of the work in this area.

Macro fiscal forecasting

Work in this area revolves around the development of macro fiscal forecasts utilizing data from the four macroeconomic sectors: (i) the real sector and prices; (ii) the external sector (balance of payments with projections of external financing and wealth fund savings abroad, exports and imports of goods and services); (iii) the fiscal sector (government finances) and the public debt); and (iv) the monetary sector (monetary survey with projections for the central government and other public sector domestic financing.

Preparation of the Medium-term fiscal framework (MTFF)

The preparation of the annual medium term fiscal framework (MTFF) is an integral part of the work of the MPU. The MTFF provides the basis for annual budget preparation and fiscal policy formulation, mainly establishing the projected resources envelope for the budget. This framework is rooted in the macro fiscal forecast prepared by the unit which covers a five (5)-year period.

Debt Management and Reporting

The preparation and submission of the annual prospectus for issues on the Regional Government Securities Market (RGSM) is currently the responsibility of the MPU. Additionally, the MPU also has also been assigned the responsibility of undertaking the debt sustainability analysis, an extensive exercise aimed at determining the sustainability of the country’s debt. This is of paramount importance and is used to assess the country’s ability to borrow.

Monitoring of the State-Owned Enterprises

The viability of the State-owned enterprises is of critical importance given its link to the central government budget. The MPU is tasked with monitoring state-owned enterprises.

Administration of duty-free concessions

Duty free concessions continue to play an integral role in the development of the economy. The MPU acts as a back stop in the administration process of duty-free concessions.