Policy and Management of Public Spending
Política y gestión del gasto público

What do we do?

We support the governments of Latin America and the Caribbean in their measures to improve the effectiveness, technical and allocative efficiency, and equity of public spending both in terms of their policies and their administration, to promote sustainable and equitable development.

Action areas

  • Improve the technical efficiency of public spending by promoting the reduction of leakages in tax spending, energy subsidies and social programs towards the non-poor sectors; reducing the gap between salaries in the public and private sectors for the same level of human capital; and tend to reduce inefficiencies and corruption in public purchases of goods and public works
  • Improve the allocative efficiency of public spending based on the evaluation of the social return rates of the different spending alternatives to improve their prioritization, to generate a greater impact on economic growth, equity, and the reduction of social and gender gaps
  • Improve coordination in the assignment and delimitation of functions between the different levels of government in terms of spending responsibilities to align and strengthen efficiency and equity at the national level
  • Strengthen the management of public investment and public-private associations, including institutional framework, planning, evaluation methodologies (exante and ex post, value for money), training, monitoring and follow-up to ensure their financing for both construction and maintenance and achieving the highest possible quality
  • Strengthen and modernize the budget process, including the adoption of results-based budgeting, medium-term spending frameworks; establishing periodic "Spending Reviews" and the management of results for development to contribute to effectively improve allocative efficiency
  • Modernize public financial management through the strengthening of the Integrated Financial Administration Systems; expansion of the coverage of the Single Treasury Account; and promoting the adoption of the International Public Sector Accounting Standard (IPSAS)
  • Improve the design of subsidy and transfer regimes, including the adoption of a negative income tax regime to promote the formality of workers and companies
  • Modernize the management of public purchases to reduce price gaps and corruption, including electronic service portals for transactional purchases, reverse auctions, framework agreements and generic price catalogs for goods and services.