Improving Subnational Fiscal Sustainability in Latin America and the Caribbean

preparation

The general objective of this proposal is to support the improvement of subnational fiscal sustainability in Latin America and the Caribbean (LAC). The specific objectives are: i) to strengthen intergovernmental fiscal arrangements to incentivize prudent fiscal management; ii) to increase the capacities of the central government entities in charge of governing decentralization processes to make fiscal monitoring and intergovernmental fiscal coordination more effective; and iii) to enhance the financial condition and credit capacity of intermediate and local levels of government in the region to increase their access to development finance.