Left Menu
Development News Edition

World Bank approves project to modernize Finance Ministry of Costa Rica

The project will support investments in many IT systems, including the interconnectivity and interoperability of government systems.

World Bank | Washington DC | Updated: 27-03-2020 08:08 IST | Created: 27-03-2020 08:03 IST
World Bank approves project to modernize Finance Ministry of Costa Rica
The project will support investments in many IT systems, including interconnectivity and interoperability of government systems. Image Credit: www.worldbank.org

The World Bank Board of Executive Directors approved today a US$156.64 million investment project for Costa Rica to improve the efficiency, effectiveness, and client orientation of the tax and customs administrations and public expenditure management. The support, called Hacienda Digital (Fiscal Modernization) aims to modernize and digitalize the Ministry of Finance to make tax and customs services and payments easier, reduce tax evasion, improve budget efficiency and debt management, and transform the Ministry of Finance's institutional culture to place citizens at the center as clients.

"Hacienda Digital provides Costa Rica with technical and financial support, under three components –modernization of our tax, customs, and budget administration—as we have an ambitious modernization agenda, which also includes public employment reforms, labor market reforms, simplifying business procedures and harmonizing statistics", said Rodrigo Chaves, Costa Rica's Finance Minister.

The project has several components. It will improve the quality of budget spending, addressing current shortcomings in expenditure management, control of payroll and debt service systems; it will facilitate revenue collection by increasing voluntary compliance and reducing tax evasion, and it will improve the business environment by reducing the high transaction costs for importers and exporters and by improving time-consuming procedures. The project will support investments in many IT systems, including the interconnectivity and interoperability of government systems. Key expected results include reduced time to generate financial statements; increased share of the budget executed through the financial management information system; improved budget efficiency; reduced tax evasion; and reduced VAT processing time for customs clearance.

"Ensuring Costa Rica's revenues and expenditures are managed as effectively and efficiently as possible will be essential towards allowing the country to use its resources where they are needed most—to reduce poverty. This is particularly relevant now as the country, the region, and the world are facing a global pandemic," said Oscar Avalle, World Bank Country Manager for Costa Rica.

The US$156.64 million operations are financed by the International Bank for Reconstruction and Development, which is a fixed spread loan and has a final maturity of 33.5 years including a grace period of six years.

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Maritime transport post-COVID 19: Disruptions ahead in business models, techno-investments, regulations

Cargo shipping is a crucial part of the global supply chains and is likely to become more resilient along with efforts to make supply chains resilient but cruise liners could face much more disruptive changes....

Asia-Pacific response to COVID-19 and climate emergency must build a resilient and sustainable future

... ...

Videos

Latest News

U.S. to probe surging beef prices, falling cattle prices during coronavirus pandemic

The U.S. Agriculture Department will investigate why a surge in beef prices due to coronavirus hoarding did not translate into higher cattle prices for farmers, Agriculture Secretary Sonny Perdue said on Wednesday.The investigation adds scr...

Watchdog blames Syria for chemical weapons attacks

The global chemical weapons watchdog on Wednesday for the first time explicitly blamed Syria for toxic attacks, saying President Bashar al-Assads air force used the nerve gas sarin and chlorine three times in 2017. The findings came in the ...

Virgin Islands at odds with Epstein estate over 'broad' liability releases

Women who say they were abused by deceased financier Jeffrey Epstein should not be required to sign broad liability waivers in order to get payouts from his estate, the attorney general of the U.S. Virgin Islands said on Wednesday.The offic...

Tablighi Jamaat faces criticism in Pakistan for COVID-19 spread

Like in India after the Nizamuddin Markaz congregation, in Pakistan too the Tablighi Jamaat is facing criticism for organising its annual mass assembly at Raiwind Markaz last month in the wake of the outbreak of coronavirus. According to a ...

Give Feedback