[Skip to content]

Public Finance International
News and comment on global public financial management
.

Guatemala receives $340m for public spending reforms

By Judith Ugwumadu | 19 June 2014

The World Bank has approved a 25-year $340m loan to help Guatemala improve the effectiveness and efficiency of public spending and to reinforce the country’s tax policy.

Specifically, the loan will help support government actions to increase the amount of income tax raised as a proportion of Guatemala’s gross domestic product from 2.7% to 3.2%.

It will also help increase the percentage of children under one year old who receive health and nutrition services in 83 vulnerable municipalities. And funds will be used to improve the implementation of social programmes by including 80% of all beneficiaries in a Unique Beneficiary Registry, the bank said.

Dorval Carias, Guatemala’s finance minister, commented: ‘The government of Guatemala is highly committed to the promotion and implementation of the necessary measures to achieve higher sustainable economic growth, increased productive investment, prioritised in the areas of health and social protection, as well as to strengthening efficiency in public spending management.’

The development policy loan also provides support to the government’s plans to increase the number of effective tax payers by at least 10% and have signed frameworks to exchange tax-related information with 60 countries.

Oscar Avalle, World Bank country manager for Guatemala, added: ‘The 2012 tax reform, along with an effort to increase efficiency in public spending, will allow Guatemala to have more resources to assist the poorest and most vulnerable population. The increased availability of funds will result in more opportunities for all.’

 

Spacer

Share this article here:


Weekly news update

Email icon

Get international news delivered straight to your inbox

Sign up for the Public Finance International weekly newsletter

Blog

  • Italy's recession: new or same old?
    Italy is reported to have slipped back into recession. But this is based on the criterion of two successive quarters of negative growth. There are other ways of measuring...
  • Sovereign debt: can't pay, must pay?
    In the wake of Argentina's debt default, it's worth asking whether conventional wisdom on the subject is overly simplistic. Is it true that states must always repay their...
  • Who's afraid of Janet Yellen?
    As Fed chairman Janet Yellen faces growing dissent, both right and left are casting her as a radical departure from her predecessors. But she is just another Bernanke who...

Configure your Portal

Public Finance International is created in partnership with:

CIPFA logo
Public Finance logo
PFM Jobs logo

Latest vacancies

Twitter feed