Fiscal Strengthening Support in Nicaragua

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The objective of this technical cooperation is contributing to improve the efficiency and equity of fiscal policy in Nicaragua, and to support the preparation and implementation of the activities included in the Fiscal Strengthening Program for Growth and Equity I (NI L1151). Structured under the programmatic loan modality in Support of Policy Reforms (PBP), NI-L1151 currently has three specific objectives: (i) increase the efficiency and simplicity of the tax system; (ii) increase the efficiency and equity of public spending; and (iii) mitigate fiscal risks associated with contingent liabilities. For the fulfillment of these objectives, it is foreseen the implementation of a series of policy reforms in different dimensions of public finances (tax revenues, public expenditures, management of contingent liabilities ) in two interrelated phases. As a result of the TC, we expect to contribute to the strengthening of public finances in the country, promoting the necessary policy dialogue to generate consensus around the key policy reforms, and as a corollary, facilitate compliance with the actions contemplated in the PBP over time.