RIO GRANDE DO SUL FISCAL SUSTAINABILITY

closed

Closed

The objectives of the Fiscal Sustainability for Growth Loan Program in Brazil are to assist the State of Rio Grande do Sul achieve a more stable and sustainable fiscal position, to improve its debt profile, to reduce social security imbalances, and to enhance the efficiency of the state public sector. This Program Document presents a two-tranche Development Policy Loan (DPL) in the amount of USN.1 billion to the State of Rio Grande do Sul, Brazil. The proceeds of the loan will used to restructure part of the state's debts and smooth its debt servicing profile. It will provide financial support at a critical juncture, as a new administration pursues policies to reverse a non-sustainable fiscal position. The operation is also a priority for the Federal Government, since it will enhance compliance by the state with the federal Fiscal Responsibility Law. The program supported by this operation is broad based and reflects a commitment to a multi-year process of reforms.The actions include, among others, a rationalization of expenditures, improving tax collection efficiency, limiting the use of tax expenditures, improving fiscal and debt management systems, restructuring of the state's debt, reforming the social security system, modernizing public sector management, reorganizing the civil service, and improving the provision of public services. The DPL is multi-tranched in order to support policy continuity. The disbursement of the first tranche would be made on the basis of actions already implemented. The second tranche is expected to be disbursed following the implementation of policy actions in 2009.

FY17 - Financial Sector,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Government