Suriname is working to improve its medium-term fiscal sustainability by optimizing tax revenue collection and improving budget planning and execution, as well as public investment management, supported with a US$50 million loan approved by the Inter-American Development Bank (IDB).
The program will strengthen revenue administration and promote voluntary compliance by supporting the reorganization of the Directorate of Tax and Customs and its internal functions, including the establishment of a semi-autonomous revenue agency and the development of capabilities to implement the value-added tax collection and provide better services to taxpayers. The project will also modernize internal procedures and upgrade the technological infrastructure of internal revenue administration and customs operations.
Additionally, the project will modernize public financial management at the Ministry of Finance and Planning to increase the transparency of the budget process and strengthen the country´s capabilities for budget planning, execution, and monitoring.
It will improve the organizational structure inside the Ministry, upgrade the IT infrastructure and support measures to enhance and build capacity in key areas such as budget planning, treasury operations, procurement, accounting, macroeconomic analysis, and internal controls.
The program will improve management of public investments, increasing transparency and helping the government to prioritize and rationalize investment projects aligned with building resilience and sustainability. Key measures include the creation of a public investment unit inside the Ministry of Finance and Planning to formulate, execute, monitor, and evaluate investment projects; the implementation of a monitoring system and project database; and updates to the legal and regulatory framework for public investments.
The Surinamese government and civil servants are the direct beneficiaries of this project, with more resources to finance public policies and better institutional capacity to control spending and prioritize investments. The project will also benefit the country’s taxpayers with better services. The general population is expected to experience improved public policies and more transparency in the use of public resources.
The IDB loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on Secured Overnight Financing Rate (SOFR).
About the IDB
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. Access our virtual tour. Access our virtual tour.