Senegal : program assistance approval document -- economic support fund (ESF-VII) -- program grant (685-0293), technical support grant (6850300)

The cash transfer, which will be disbursed in two tranches, will support tax reform, and as a secondary benefit, will facilitate improved control of budget expenditure in the medium-term by achieving greater transparency in the GOS"s extrabudgetary accounts. The substantive condition precedent for release of the first tranche will be a GOS promulgation of a revised income tax code incorporating a simplified single tax schedule for all sources of household income. An equivalent amount of local currency will be used to reduce GOS arrears to the private sector or to contribute to payments on agricultural debt to the banking sector. Complementary TA and special studies will be provided under 6850300.