CR-T1207 : Support for Fiscal Institutionality

The main objective is to provide technical support to the Ministry of Finance in the comprehensive review of public spending, public employment and strengthening the implementation of electronic invoicing. The Government of Costa Rica has been making efforts to correct its fiscal imbalance. Specifically, the country has completed the approval process of a fiscal reform that includes measures for both the revenue side (changes in VAT and Income Tax) and the expenditure side (more control in wage bill and earmarked expenditure), as well as the implementation of an expenditure fiscal rule. The IMF estimates a return of around 4 percentage points of GDP (2023-2018) as a result of this policies. As a continuation of the efforts to stabilize public finances, the government requires support in the review of the expenditure and the implementation of the Electronic Invoice, specifically the tax risk analysis derived from this tool. The specific objectives are: (i) formulate, in coordination with the General Directorate of Taxation, the design and application of a methodology for tax risk analysis with the Electronic Invoice databases; (ii) support the implementation of the reform in public employment through occupational and market studies; (iii) determine the design of an institutional reengineering, in accordance with the implementation of a Zero-Based Budgeting (ZBB) for the public sector.