6 percent of GDP in 1995, and 7.6 percent in 1996, from 9.3 percent of GDP in 1994, and to raise official reserves to the equivalent of 3.6 months of imports by 1996. Implementation of the program should also lead to a normalization of relations with creditors. To achieve these objectives, fiscal policy will seek to lower the overall deficit from 7.2 percent of GDP in 1994 to 6 percent in 1995 and to 5.5 percent in 1996. This reduction is predicated on an increase in government nonmining revenue through reduced duty exemptions, strengthened tax administration, and a broadened tax base. The level of government expenditure will increase by one percentage point of GDP in 1996 and its composition will be altered to favor the social sectors and investments in infrastructure.
Guinea also intends to pursue a tight monetary policy to keep inflation low.
Structural Reforms Structural policies under the program aim at further broadening the scope for private sector growth. Accordingly, they focus on privatizing and reforming the parastatals, strengthening of the judiciary, revision of the development strategy for the mining sector, and reform of the civil service. In particular a complete inventory of the remaining government enterprises and an action plan for their restructuring, privatization, or liquidation is to be completed by the end of 1995. Under the program, the 1996 budget is slated to raise expenditure on primary education and preventive health and sanitation by 10 percent in real terms. The primary school enrollment rate, which has increased from 29 percent in 1990 to about 43 percent at present, is targeted to rise further to 53 percent by the end of the decade.