Brazil’s Piauí State to Modernize Fiscal Management with IDB Support

WASHINGTON – The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a $53 million investment loan to improve revenue and expenditure management in the Brazilian state of Piauí.

The project, part of the third phase of the IDB-backed PROFISCO program in Brazil, will modernize fiscal management in Piauí, strengthening fiscal sustainability and supporting the alignment of the state with Brazil’s consumption tax reform. 

The project will improve public sector governance, planning, and transparency. It includes workforce training and fiscal education programs for the general population, modernization of digital infrastructure and cybersecurity, and expanded use of data analytics and artificial intelligence.

In tax administration, the project will improve revenue collection, update the taxpayer registry, modernize taxpayer services, and enhance oversight through digital tools and artificial intelligence. It will also support more effective budgeting, expenditure management, accounting, and tax-related legal processes, helping the state enhance fiscal health and improve public spending outcomes, and the delivery of public services.

In addition, the project will strengthen the management and recovery of public debt, modernize legal processes, and enhance the management of fiscal and legal risks. It will also support more efficient handling of court-ordered payments and legal claims through digital tools and streamlined procedures.

The project’s main beneficiaries include taxpayers, who will benefit from improved systems and processes for meeting their tax obligations, and the broader population of Piauí, who will benefit from greater fiscal transparency and more effective public policies.

The IDB loan has a 24.5-year term, a six-year grace period, and an interest rate based on SOFR. Counterpart financing totals $5.3 million. Following approval by the IDB's Board of Executive Directors, the program will move through the required Brazilian legal and administrative processes before implementation begins.