The Inter-American Development Bank (IADB) and Bolivia have signed a US$15mn loan for a programme to improve efficiency in public administration.
The loan will support policy measures in Bolivia designed to improve and consolidate effective, efficient and transparent results-based public expenditure mechanisms.
The programme is structured to strengthen four policy areas: integration and quality of the budget cycle, integration of financial management systems at the central and subnational government levels, control of government expenditure and measures for enhancing transparency and combating corruption.
The creation of a results-based management system will consist of setting up procedures, methodologies and mechanisms for improving the coordination and integration of the budget cycle. Capacity building for definition of sector programmes, the setting of priorities and the introduction of budget functional classification will contribute to the alignment of policy with resource allocations.
This operation will help improve management to promote efficiency in public administration, a goal of the IADB strategy for Bolivia. The Bolivian finance ministry will carry out the programme.
The loan is for a 40-year term, with a 10-year grace period at an interest rate of 1% during the grace period and 2% thereafter.