Swaziland: 'Swaziland uses IMF monitoring programme to fight fiscal crisis'

IMF Managing Director Dominique Strauss-Kahn has approved a staff-monitored program for Swaziland to help the southern African country enact tax reforms and at the same time protect social spending. The program entails IMF staff scrutiny of the authorities’ policies, but does not include formal backing of the program or any financial support. Swaziland is facing a serious fiscal crisis, with an overall budget deficit estimated around 13 per cent of GDP for the 2010/11 fiscal year ending on 31 March 2011. The crisis came from structural imbalances in both government expenditures and revenues.