IDB Approves $90.4 Million to Modernise Goiás Public Finances

The investment will help the state modernise its revenue collection and public expenditure systems while improving transparency, accountability and institutional capacity.

The Inter-American Development Bank (IDB) has approved a US$90.4 million loan for the Brazilian state of Goiás to improve fiscal management, strengthen public governance and support more efficient delivery of government services.

The investment will help the state modernise its revenue collection and public expenditure systems while improving transparency, accountability and institutional capacity. The programme is designed to strengthen Goiás's financial management as Brazil implements its national consumption tax reform, helping the state adapt its systems and processes to the new framework.

Technology upgrades to improve government efficiency

The project will finance a range of reforms, including improvements to fiscal governance, digital infrastructure and operational processes. Goiás plans to modernise its information technology systems, strengthen personnel management, streamline procurement procedures and increase citizen participation in public administration.

The programme will also update tax administration, budgeting systems and legal frameworks to improve revenue collection, manage public spending more effectively and strengthen oversight of fiscal risks and liabilities. These reforms are expected to make government operations more efficient while improving the quality of services provided to residents.

Programme supports long-term fiscal sustainability

The operation forms part of the third phase of the PROFISCO Programme, a nationwide initiative supported by the IDB to strengthen fiscal sustainability among Brazil's state governments. By improving tax compliance and enhancing financial management, the programme is expected to create more room for high-quality public investment and better public services.

The loan has a 24-year repayment period, including a six-year grace period, with an interest rate linked to the Secured Overnight Financing Rate (SOFR). The project also includes US$10.1 million in counterpart funding from Goiás, supporting the state's broader efforts to promote sustainable economic and social development.