Bolivia will start a program to improve budget management and control public expenditure with a $30 million loan approved by the Inter-American Development Bank (IDB).
The program will be implemented both at central and subnational government levels. It will strengthen the budget process, foster integration of information systems, and improve public expenditure controls, a move that will increase transparency and step up the fight against corruption.
The lending, second in a series of three policy-based loans aimed at promoting the country's development, seeks to build on the achievements of the first operation for the sector –a $15 million loan approved in 2005–, and align the program's actions with the new Bolivian Constitution in place since 2009.
The specific goals of the second operation include:
- Improving coordination and integration of the budget cycle stages, strengthening decision-making systems, and fine-tuning mechanisms aimed at improving public sector management.
- Consolidating the use of financial administration and budget management tools that meet the needs of the central and subnational governments.
- Enhancing the quality of information and monitoring of the main public expenditure components.
- Improving transparency and accountability, promoting access to information and social supervision, and discouraging corruption in the public administration.
The financial package includes a $21 million loan for a 30-year term with a 5½ year grace period at a variable interest rate based on LIBOR, and a $9 million concessional credit for a 40-year term with a 40-year grace period and 0.25% interest rate.