Fiscal Modernization of the Rio de Janeiro Public Sector

Project BRA/98/013 -- Start Year: 1998; Approved Budget: US$21,706,000; End Year: 2002; Implementing Agent: NEX (National Execution Related Projects); Executing Agent: Finance Secretariat of the State of Rio de Janeiro

Project background and rationale: The State of Rio de Janeiro, the second largest among Brazilian States in terms of GNP, suffers from fiscal deficits, which result mainly from excessive payroll expenditures. Consequently, resources available for public goods and services have become chronically insufficient. In order to increase the State’s income, a series of administrative reforms is needed concerning the organizational structure, the physical infrastructure, the Information Technology and communication system and the level of competence of its professionals. These are undertaken within the framework of this project, which belongs to a broader initiative, the National Programme of Assistance to the Fiscal Administration, aimed at reducing the discrepancies between the various State financial and fiscal administrations and improving the efficiency of Brazil’s fiscal federalism

Project development goal: This project aims at modernizing the administration and organization of the fiscal system of the State of Rio de Janeiro, in order to contribute to the improvement of the level of financial and economic sustainability of the country, which would allow an increase of governmental action in the fields of Public Health, Education and Security.

Project immediate objectives and expected outputs: In order to attain this goal, this project pursues two immediate objectives:

1. To increase, within three years, the level of tax;

2. To attain, within the year 2000, budgetary balance through the improvement of the financial organization and the rationalization of the management of the State’s public resources.

Contact details: Projeto BRA/98/013 - Projeto de Modernização Fiscal do Estado do Rio de Janeiro Secretaria da Fazenda do Estado do Rio de Janeiro Praça Pio X, No. 55 - 6o. andar CEP: 20040-020 - Centro - Rio de Janeiro - RJ