A $30 million loan will contribute to the management of public spending and modernization of the tax system
Brazil will contribute to the fiscal sustainability of the State of Amapá with the improvement of public expenditure management and the modernization of the tax system with the support of a $30 million loan approved by the Inter-American Development Bank (IDB).
The program aims to improve management processes and instruments, modernize the technological infrastructure and increase the transparency of the treasury in the State of Amapá, enhancing the institutional performance of its Ministry of Finance.
The management of human resources is foreseen, including mapping of the profiles and skills development of officials and procedures for knowledge management. Information security and cybersecurity procedures and policies will be included, as well as infrastructure for the use of big data and the extension of the contingency environment in case of failures or disasters.
The transparency portal will also be improved with new procedures and technological tools for communication and transparency of state policies, and the reformulation and expansion of the fiscal education program with an awareness campaign.
On the other hand, the efficiency of tax collection will be increased, income will be increased, tax compliance will be simplified and tax discipline will be contributed and the efficiency and effectiveness of public spending will be increased. This will lead to an update of the audit procedure and massive fiscal intelligence based on risk, with improvements in the control module of the Integrated Tax Administration System, the redesign of the organization of the procurement processes and strategic planning of the contracts, and the update of the Integrated Administrative Management System regarding the registration of suppliers, contract management, process automation and the interface with the Financial System, among others.
The State of Amapá will benefit its citizens, businesses, taxpayers, and public and non-governmental sector entities, through a better provision of services, facilities and lower costs for tax compliance, and an improvement in the availability of information for the management and accountability of the State.
The IDB loan of $30 million has a repayment term of 25 years, a grace period of five and a half years, and an interest rate based on LIBOR, and has a local counterpart of $3 million.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.