Second Programmatic Development Policy Loan

closed

Closed

Objective of the Second Programmatic Fiscal Management and Efficiency of Expenditures Development Policy Loan Project for Panama is to support the Government of Panama in creating fiscal space and strengthening social transfer programs. The operation supports four areas that are central to the Government's reform program: (1) tax reform will support the Government's tax policy and administration reforms and its improvements in international tax information sharing. Together, these reforms are expected to mobilize tax revenue and facilitate the international exchange of tax information; (2) modernizing public procurement practices will significantly increase accountability and transparency and reduce transaction costs, since 37 percent of non-financial sector public spending is done through procurement; (3) increasing the efficiency of debt management; a major challenge for debt management in Panama is the lack of a medium-term debt management strategy. In particular, while overall guidelines such as the development of the domestic debt market and the smoothing of the debt profile exist, there is no formal debt management strategy in place. Such a strategy will establish target ranges for selected indicators of financial risk after assessing the cost-risk tradeoffs of different alternatives; and (4) and expanding and improving targeting of social transfer programs.

FY17 - Education,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Government, Education