Boosting Growth through Fiscal Policy: Empowering Macro-Fiscal Units with Multisectoral Tools

preparation

The objective of this Technical Cooperation (TC) is to strengthen the capacity of macro-fiscal units within the Ministries of Finance (MEF) in Ecuador, Bolivia and Colombia to strength inform fiscal policy decisions that affect growth, equity, and fiscal sustainability, by improving the analytical inputs used in macro-fiscal policymaking. The TC will support this objective by fostering a regional collaboration among macro-fiscal units to share tools, technical standards, and best practices, and by jointly developing an action plan for the adoption of modern analytical instruments, considering countries' differing institutional capacities. To achieve this objective, the TC will: (i) develop a harmonized institutional framework to guide macro‑fiscal units in the design and evaluation of fiscal policy; and (ii) create a Regional Fiscal Analysis Tool based on standardized Fiscal Social Accounting Matrices (Fiscal SAMs), enabling multisectoral, evidence‑based assessments of the growth and distributional impacts of fiscal policies. These tools will support the analysis of fiscal policy trade-offs—such as tax and expenditure reforms, fiscal consolidation paths, and sectoral impacts—used in policy dialogue and the preparation of lending operations.