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Fiscal management for sustainable and inclusive development
Fiscal Management

We support governments in Latin America and the Caribbean to strengthen fiscal management at both the national and subnational levels and achieve equitable and sustainable growth.

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We finance projects and offer technical assistance based on evidence. We design and implement solutions adapted to the fiscal and institutional context of each national and subnational government to promote environmental and fiscal sustainability as well as greater income and gender equality.

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Tax policy and administration
Tax policy and administration

WHAT DO WE DO? 

We help countries build and implement more efficient and equitable tax systems that contribute to achieving their development goals. 

LINES OF ACTION 

  • Improve the design of tax system structures that are simple, progressive, non-distortionary, and that generate the required levels of revenue. 
  • Modernize tax administrations institutionally and technologically to facilitate compliance and control of tax obligations. 
  • Promote the use of tax, administrative, and third-party data to detect irregularities and improve collection. 
  • Encourage taxation of the digital economy and reduce erosion of tax bases and profit shifting abroad, respecting international tax agreements. 
  • Improve tax coordination among different levels of government, both in policy and management aspects.
Public Spending
Public Spending

WHAT DO WE DO? 

We help governments strengthen policies and public expenditure administration to improve their quality and promote sustainable and equitable development. 

LINES OF ACTION

  • Strengthen the institutional framework of Ministries of Finance to increase the allocative and technical efficiency of public expenditure.
  • Promote digital transformation in public expenditure management by strengthening information systems and data exploitation.
  • Modernize budgetary processes by improving medium-term planning and resource allocation based on evidence and results.
  • Strengthen the management of public investment and public-private partnerships.
  • Enhance public procurement management to improve efficiency and transparency in resource utilization.
  • Improve the allocation and delineation of functions among different levels of government regarding expenditure responsibilities.
Subnational fiscal management
Subnational fiscal management

WHAT DO WE DO? 

We help strengthen coordination between levels of government and the fiscal management capacities of subnational governments for the efficient, equitable, and transparent provision of public services. 

LINES OF ACTION

  • Strengthen institutions responsible for coordinating fiscal relations between levels of government.
  • Promote fiscal autonomy of subnational governments and access to financing within a framework of fiscal responsibility.
  • Improve the design of transfer systems to address subnational fiscal disparities.
  • Modernize public financial management and enhance spending efficiency at the subnational level.
  • Promote transparency and accountability in subnational public management.
Macrofiscal management
Macrofiscal management

WHAT DO WE DO?

 We support fiscal policies to achieve sustained economic growth, with fiscal sustainability, and macroeconomic stability. 

LINES OF ACTION 

  • Strengthen medium-term fiscal planning to encourage fiscal discipline. 
  • Improve the design of fiscal rules and fiscal responsibility laws to increase the sustainability of public finances and reduce pro-cyclical biases in fiscal policy.  
  • Strengthen accountability for fiscal outcomes by supporting the design and implementation of independent fiscal institutions. 
  • Promote the saving of public resources from commodities through sovereign wealth funds. 
  • Strengthen debt and fiscal risk management related to contingent liabilities.
Green Fiscal Management
Green Fiscal Management

We help governments incorporate climate change into the design and implementation of fiscal policies to promote a just and equitable transition to green economies.

LINES OF ACTION

  • Generate and disseminate knowledge on how fiscal policy and management can contribute to addressing the challenges of climate change.
  • Develop instruments and methodologies to include climate aspects in fiscal management.
  • Provide technical assistance to implement climate actions in fiscal policy and management projects.
  • Strengthen the capacities and knowledge of national counterparts, particularly Ministries of Finance, on climate change and sustainability issues.

The IDB has a team of specialists with high technical capacity who is familiar with local realities and maintains a permanent dialogue with member countries to advise them on the design and implementation of effective fiscal management policies and practices. The Bank has different  instruments—loans,  guarantees,  knowledge, technical cooperation and assistance—that allow it to provide comprehensive support during the different phases of fiscal interventions.

LOANS

We offer long-term loans to governments to strengthen and modernize fiscal institutions. More specifically, our policy-based loans support changes in legislation and regulations affecting public finances. Our investment loans support the implementation of institutional and policy reforms.

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Knowledge

We work with governments, academic institutions, and other international organizations to incorporate best practices and cutting-edge knowledge into the design and implementation of projects aimed at strengthening fiscal policy and management. Our work includes the production of in-depth research and rigorous diagnoses, as well as the organization of seminars and regional dialogues to disseminate knowledge and exchange experiences and best practices.

 

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Technical Assistance

We offer technical assistance to governments to strengthen institutional capacity and support the design, implementation and evaluation of fiscal reforms and fiscal management modernization projects.

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Word FISLAd Fiscal Sustainability for Latin America and the Caribbean

Learn more about our analytical tool FisLAC

A laptop, on it there is a graphics tablet that displays graphics, on top of the tablet there is a pen. Subnational fiscal information platform about Latin America and the Caribbean

Check out our database and visualizations.

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The Fiscal Management Division of the IDB promotes technical dialogue through different types of networks to discuss best practices, cutting edge research and exchange lessons learned in the design and implementation of fiscal policies. The topics of discussion include: public procurement, public investment, public financial management, green fiscal policy, result-based budgeting, and subnational governments.

LAC Regional Climate Change Platform of Economy and Finance Ministries

Latin-America and the Caribbean Community of Practice on Managing for Development Results. (COPLAC)

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