RIO STATE DEVELOPMENT POLICY LOAN III

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The development objective of the Third Rio State Fiscal Efficiency for Quality of Public Service Delivery Development Policy Loan (DPL) Program is to assist the Government of Rio de Janeiro in strengthening its tax administration, improving the efficiency of public financial management, increasing the quality of public service provision in education and health and ensuring that policies adopted are both consistent with priorities of the State Government and with resources likely to be available in the medium term. This program document presents a DPL in the amount of US$300 million for the state of Rio de Janeiro, Brazil. This DPL is designed to assist the Government of Rio de Janeiro (GORJ) in continuing its efforts to improve fiscal management, social service delivery in health and education, and public financial management. Although requested as a stand-alone DPL, the operation forms part of a long term quasi programmatic engagement with the State. It is the third DPL operation with the state of Rio de Janeiro. The policies supported by this third DPL are part of the GORJ's medium-term reform program and would deepen and extend the areas covered by the first DPL. Specifically, the operation will support measures to: (i) improve the efficiency of tax administration; (ii) improve budgetary management, including screening and evaluation of new public investment projects, better estimating costs of new policy initiatives, and strengthening internal controls; and (iii) increase quality and efficiency of the education system, by introducing merit-based selection processes for school managers, annual school-level performance targets, and performance-linked pay, and in the health system by increasing the efficiency of health spending, both in regional hospitals and smaller municipalities.

FY17 - Education,FY17 - Health,FY17 - Public Administration

World Bank Group

Project

Hospital, Government, Education