Second Programmatic Fiscal Sustainability and Growth Resilience Development Policy Loan

closed

Closed

The development objective of the Second Programmatic Fiscal Sustainability and Growth Resilience Development Policy Loan (DPL) Program for Colombia is to enhanced fiscal sustainability and strengthened resilience of economic growth. The Government of Colombia has requested a DPL for US$200 million. The First DPL for US$300 million, approved by the Board in July 2011, supported the legislative approval of several important fiscal reforms. Building on the progress achieved under DPL I, this program document is the second DPL supporting the sustained implementation of these reforms. The request underscores the Government's continued interest in engaging with the World Bank to support its efforts in improving fiscal management. The fiscal reform program supported by the loan series seeks to enhance fiscal sustainability and strengthen growth resilience. The program includes a series of measures that can be grouped along three main policy reform areas: (a) budget predictability and stability, (b) social security liability management, and (c) disaster risk financing. The first area includes the implementation of a fiscal rule and a tax reform. The second area covers important legal and regulatory changes to the health insurance system, including the update of the mandatory benefit package and the creation of a contingency fund. The final area includes the development of a national disaster financing strategy and measures to enhance agricultural insurance coverage within a holistic agricultural risk management strategy. The Government of Colombia has made substantial progress in implementing its ambitious fiscal reform program. During the first half of the Presidential term, Congress approved a series of major fiscal reforms, including: a fiscal rule, a reform of the royalties system, a fiscal sustainability constitutional change, tax reforms, and a health law. As detailed in this document, the Government has made good progress in implementing this legislative agenda. The Bank is committed to a long-term engagement in support of the Government's fiscal reform program. The operation is fully consistent with the Bank's business model in Colombia, which emphasizes a strategic and integrated client engagement in support of selected development outcomes through three main lines of business, including financial, knowledge and convening services.

FY17 - Agriculture, Fishing and Forestry,FY17 - Financial Sector,FY17 - Health,FY17 - Public Administration

World Bank Group

Project

Oil and Gas, Hospital, Commercial, Raw Materials, Government