Brazil’s Federal District To Improve Fiscal Management With $72.7Mn IDB Loan
- Brazil’s Federal District will modernize its fiscal management while enhancing its tax administration and public expenditure management with the help of a $72.7Mn loan approved by the Inter-American Development Bank (IDB). The loan has a 24.5-year term and a 6-year grace period, at an interest rate based on the Secured Overnight Financing Rate (SOFR).
- The financing is part of the $900Mn Fiscal Management Modernisation (PROFISCO II) programme, which was approved in 2017 to digitally transform and modernize fiscal management in Brazil’s 26 states and the Federal District.
- Most of the funds ($40Mn) will be used to upgrade technological infrastructure by creating data storage and processing platforms, establishing an IT park, training staff on new technologies, implementing data cybersecurity systems, and using artificial intelligence to serve taxpayers, among other initiatives.
- Another $21Mn of the new loan is designed to streamline tax collection, raise revenues, and simplify tax compliance, while the project will allocate almost a quarter of its resources to help mitigate climate change.
(Source: Caribbean News Global)