(MENAFN- Caribbean News Global) WASHINGTON, USA – brazil's Federal District will modernize its fiscal management while enhancing its tax administration and public expenditure management with the help of a $72.7 million loan approved by the Inter-American Development Bank (IDB).
The financing is part of the $900 million PROFISCO II program, 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 ($40 million) 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 $21 million of the new loan is designed to streamline tax collection, raise revenues, and simplify tax compliance. This component will primarily focus on implementing a modern system for monitoring the movement of goods, an automated audit planning system, and a module for integrating the single foreign trade portal.
A third component will focus on modernizing financial management, including the budget, financial and accounting management system modules. It will also set up a computerized payroll system.
This project will allocate almost a quarter of its resources to help mitigate climate change. Measures in this area include boosting the efficiency of public buildings by installing solar panels and appropriate lighting, air conditioning, and wiring systems to reduce electricity consumption.
The $72.7 million 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).
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