Enhanced Fiscal and Financial Management for Greater Opportunities DPL

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The development objective of the Enhanced Fiscal and Financial Management for Greater Opportunities Development Policy Loan (DPL) Project for Guatemala is to support the Government of Guatemala to: (i) strengthen tax administration and tax policy; (ii) strengthen budget management and increase the results orientation of public spending; and (iii) improve the management and coordination of social policies. This program document provides a second DPL in the amount of United States (U.S.) 340 million dollars to the Republic of Guatemala. This operation complements efforts of other development partners, and builds on lessons learned and progress achieved under previous World Bank operations. It helps consolidate a set of cross-sectorial policies intended to support a more efficient delivery of quality public services. At the same time, this operation aims to establish a foundation for progress in the medium- to long-term. In particular, new initiatives include enhancements to the organizational structure of the tax administration superintendence (superintendencia de la administracion tributaria, SAT), the creation of a department of international taxation within the ministry of finance (ministerio de finanzas publicas, MINFIN), and mandating the use of the single treasury account and the integrated financial management system (SIAF) for all budgetary transactions, thereby increasing the transparency and monitoring of public spending. In addition, to enhance its policy dialogue, the World Bank Group is engaged in a series of analytical and advisory activities in support of envisaged reforms in this DPL in the areas of economic governance, poverty and equity monitoring, and competitiveness.