- Budget execution has been slow so far this year, reflecting administrative bottlenecks. To support the recovery, the authorities intend to accelerate the execution of public investment while sticking to the end-year primary balance target.
- Full and timely implementation of the supplementary budget measures aimed at rationalizing tax expenditure will be essential to address emerging revenue shortfalls.
- Work on the 2027 budget is underway, with domestic revenue mobilization and the full reinstatement of the automatic fuel pricing mechanism expected to remain the centerpiece of the authorities’ fiscal strategy. This is critical to create space needed to address the country’s large development needs.
Washington, DC: An International Monetary Fund (IMF) team, led by Mr. Constant Lonkeng, visited Antananarivo during October 5–9, 2026, to assess recent economic developments and the outlook, take stock of the execution of the 2026 budget, discuss the shape—and policy intentions—of the 2027 budget, and gauge progress in the authorities’ commitments under Madagascar’s Fund-supported programs. The IMF Executive Board approved in June 2024 an Extended Credit Facility (ECF) and a Resilience and Sustainability Facility (RSF) arrangements for Madagascar (see PR 24/232). The combined Third and Fourth reviews of the ECF and RSF were completed in September 2026 (see PR 26/271).
At the end of the visit, Mr. Lonkeng issued the following statement:
“Madagascar is undergoing a political transition following last year’s protests linked to repeated disruptions to electricity and water supply. Vulnerabilities were compounded by tropical cyclone Gezani earlier this year and higher global oil prices amid the war in the Middle East. Post-cyclone reconstruction is underway.
“Budget execution has been slow so far this year, reflecting administrative bottlenecks. The authorities intend to accelerate capital spending in an efficient manner, taking into account absorptive capacity, to support the recovery while sticking to the end-year primary balance target. Full and timely implementation of the supplementary budget measures to rationalize tax expenditure will be essential to address emerging revenue shortfalls.
“Work on the 2027 budget is underway, with domestic revenue mobilization and spending prioritization—including the full re-instatement of the automatic fuel pricing mechanism—expected to remain the centerpiece of the authorities’ fiscal strategy. This is critical to create space needed to address the country’s large development needs.
“On the structural front, the focus should move from design and planning to implementation of governance reforms. In this regard, a robust framework for monitoring progress under the homegrown action plan for implementing key recommendations of the IMF’s governance diagnostic will be critical to improve accountability. Reform of the public utility company (JIRAMA) must also be accelerated, as well as the implementation of outstanding reform measures under the RSF.
“A formal assessment of Madagascar’s performance and prospects will take place in the context of the upcoming fifth reviews of the ECF and RSF, with the team scheduled to return to Antananarivo in the coming months.
“The team met with his Excellency President of the Refoundation Michaël Randrianirina, Prime Minister Mamitiana Rajaonarison, Minister of Economy and Finance Herinjatovo Ramiarison, Minister of Energy Lucas Rabearimanga, Central Bank Governor Aivo Andrianarivelo, other senior government officials, civil society organizations, private sector representatives and university students.
“The IMF team would like to thank the Malagasy authorities and various stakeholders for their cooperation and candid discussions.”
READ MORE: https://www.imf.org/en/news/articles/2026/10/10/pr26333-madagascar-end-of-mission
