WASHINGTON, DC, March 18, 2025 - The World Bank Board of Directors has approved new financing for the State of Rio Grande do Sul to improve fiscal sustainability and public management efficiency. This package is under the umbrella of the Fiscal Sustainability and Public Management Efficiency Program (Progestão Program), which is open to all Brazilian states. By modernizing governance structures, the project will contribute to a more transparent and accountable government that better serves its citizens.
This project has allocated $50 million to Rio Grande do Sul.
The Progestão Program is designed to provide a unified approach to addressing fiscal challenges faced by Brazilian states which arise from high wage and pension bill, limited public investment planning, and inefficiencies in public expenditure which impact service delivery performance.
The program introduces structural reforms that enhance transparency, accountability, and the efficiency of the overall public administration. In Rio Grande do Sul, key reforms include strengthening Human resources and pension management, public procurement, public investment and asset management, as well as improving financial management in key sectors such as education, health and social assistance.
"Progestão signals the World Bank's long-term commitment to the Government of Brazil to support the coordinated efforts of federal and state government to address complex and common reform challenges across Brazilian states, said Johannes Zutt, World Bank Country Director for Brazil. "In Rio Grande do Sul, the project will help the state implement critical reforms that will optimize public expenditures and strengthen governance for more resilient state institutions."
Key Program Highlights:
- Comprehensive Government Management Systems: The initiative will enhance many governmental services, including human resource management, pension administration, public procurement efficiency, public investment management, and asset management to optimize expenditures and improve transparency.
- Strategic Sectoral Investments: The program will support improvements in financial management within the health, education, and social assistance sectors, ensuring better allocation and use of public resources.
- Project and Change Management: Strengthening the capacity of state institutions to implement reforms, monitor progress, and strengthening the learning agenda of the Program.
Aligned with Brazil's economic reform agenda, this initiative represents a significant step toward a more efficient and sustainable public administration in Rio Grande do Sul and across the various states that will participate in the Progestão Program.
Website: www.bancomundial.org.br
