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2
Chapter
Fisical policy and Development finance
D espite substantial fiscal reform, revenue ratios, fiscal balance and debt levels have deteriorated in Africa, reflecting a continuing reliance on commodity revenue and the recent steep decline in commodity prices. Although growth and employment remain primary objectives of fiscal policy, many African economies need to adopt a countercyclical fiscal policy that also focuses on macroeconomic stability. Overall, African countries could increase their government revenue by up to 5 per cent of GDP by shifting from acyclical or procyclical fiscal policy to countercyclical fiscal policy.
