2. Economic Policy
2.1 Fiscal Policy
(1) Accelerate the stimulation of the economy in such a way as to increase the people's income levels and arrest the economic slowdown. Toward this end, the current fiscal deficit policy will be maintained for a certain period but within appropriate product fiscal and monetary and guideline. A balance budget policy will be instituted once the economy has attained a normal and sustained growth path. ( In solving the immediate economic crisis, the Government will prepare a budget based on the country's needs and national development strategies. The budgetary process will be reformed. The budget allocation and payment system will be improved by utilizing appropriate and prudent technology to ensure that expenditure may be allocated, disbursed, supervised, audited and evaluated in a timely manner. (Budgetary reallocations will be made by reallocating fund from unnecessary or low priority projects or those having high import contents to projects and programmes which will have immediate impact to stimulate the economy, create new employment and/or new income opportunities with definite project or programme targets.
(2) Improve the tax system in line with national development strategies, in particular, promoting and stimulating the real sector by increasing productivity and domestic value added as the basis for future long term restructuring of the economy as well as the promotion of domestic saving and resource mobilization for investment and creation of new entrepreneurs. The tax codes will be reviewed, a tax map prepared and collection methodology will be streamlined to reduce cost, increase transparency with greater clarity with a view to reduce official discretionary powers and eliminate corruption.
(3) Maintain a prudent and disciplined fiscal policy to promote stable and sustained growth consistent with national economic policies. Implement a responsive, credible and cost effective debt-asset management policy and restricting government borrowings principally to economic and social development projects and programmes with the purpose of creating income and promote private sector economic development and increasing national prosperity.
(2.2 Monetary Policy, Financial Institutions and Capital Markets Policies
(1) Implement monetary policies that facilitate the extension of credits to the real sector in order to support an expansion in the business sector, stimulate stable economic growth, and promote public savings. Such policies would also be consistent with the country's fiscal policies and national development strategies.
(2) Implement exchange rate policies that facilitate the process of income creation for the people of all levels and economic recovery. Such policies would also support the productive and services sectors that rely mainly on the use of domestic resources in order to make them more competitive in world markets.
(3) Accelerate the development and revival of the country's financial institutions system to enable it to function normally to support economic recovery and development, with the least monetary and financial burden on the Government and with the objective of promoting the competitiveness of financial institutions over the long term. The role of state financial institutions will also be developed and adjusted to make them an important mechanism in promoting activities that have the potential to generate income as quickly as possible and in line with the country's national development strategies.
(4) Accelerate the development of the money and capital markets to make them an efficient mechanism for the mobilization of capital and the promotion of long-term savings by the business sector and the people. The tax structure would be revised accordingly and equitably. Business enterprises that are efficient and have good future prospects would be encouraged to be listed in the Securities Exchange so that the economic sectors that are important and correspond with the country's national development strategies are able to fully utilize the money and capital markets.
(5) Accelerate the development of the market for debt instruments in order to create alternatives and opportunities for greater access to sources of capital of the private sector as well as to create equal importance among the money market, capital market, debt instrument market, and savings in financial institutions. This would help accelerate the development of the country's business sector and the economy in a comprehensive manner, while also promoting savings and diversified opportunities for investments among the people over the long term.