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IDB helps Brazil to improve federal administration and boost quality of public expenditure

The Inter-American Development Bank approved a $28.6 million loan to help modernize the instruments that support the Brazilian federal government's decision-making processes to help it improve the quality and management of public expenditure.

 

Over the past two decades the government has undertaken major public management reforms. Yet, the public sector remains heterogeneous and in need of institutional consolidation and greater coordination among federal, state, and municipal authorities. Government information systems also need to be upgraded and more effectively integrated.

 

The Bank's funding will help tackle these problems, boosting the administration's capacity to plan investments, formulate efficient budgets, manage procurement and implement public projects.

 

To achieve these goals, the project will finance training programs, as well as the design and implementation of management information systems, including process mapping, modeling tools and content-management and decision-making support software.

 

The Brazilian government will provide $20.4 million in counterpart funds to help finance the program.The Ministry of Planning, Budget and Management will be the agency responsible for the execution of the program, which has five components:

 

  • modernization of planning and budget systems ($16 million)

  • management and integration of information technology resources ($8 million)

  • institutional capacity strengthening for investment management ($14 million)

  • modernization of tools to support the execution of public expenditure ($7 million)

  • improvement of government coordination ($2 million)

 

The loan, from the Bank's ordinary capital, will be disbursed over a four-year period. It is for a 20-year term, including a four-year grace period, and carries a variable interest rate based on Libor.