RS: Strengthening Fiscal and Water Resources Management DPL

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The objective of the Strengthening Fiscal and Water Resources Management Development Policy Loan Project for Brazil is to improve government's capacity to mitigate economic volatility in the State of Rio Grande do Sul by supporting measures to increase resources available to the government and to reinforce the Integrated Water Resource Management framework. There are 2 pillars the Bank will be focusing on. (1) Strengthening fiscal management pillar will contribute to strengthening the state’s investment capacity, while the irrigation and water resources management pillar will support strengthening economic, logistical and energy infrastructure, while ensuring environmental sustainability. The fiscal pillar aims to promote savings in expenditures or increase revenues, which will ultimately increase the resources available for investment. (2) Irrigation and water resources management pillar will focus on promoting sound irrigation policies and strengthening the State Water Resources Management System, enhancing capacity for planning and operation of water infrastructure. This operation is connected with the Bank's broader goals since it aims to reduce macroeconomic volatility which disproportionately hits the poor, while the second pillar is targeted to more impoverished regions and families in the bottom 40 percent of the income distribution.