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.

Tax policy and administration

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.

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.

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.

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.

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.