The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) Costa Rica Fiscal Management Improvement Project (P172352) LATIN AMERICA AND CARIBBEAN | Costa Rica | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 1 | ARCHIVED on 22-Jun-2020 | ISR42162 | Implementing Agencies: Ministry of Finance, Republic of Costa Rica Key Dates Key Project Dates Bank Approval Date: 26-Mar-2020 Effectiveness Date: -- Planned Mid Term Review Date: 27-Mar-2023 Actual Mid-Term Review Date: Original Closing Date: 31-Mar-2026 Revised Closing Date: 31-Mar-2026 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve efficiency, effectiveness and client orientation of tax and customs administration, and public expenditure management. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening public expenditure management:(Cost $44.44 M) Enhancing efficiency and client orientation of tax administration:(Cost $28.46 M) Enhancing customs controls and services:(Cost $52.34 M) Strengthening the technological, institutional and operational environment:(Cost $23.00 M) Project Management & Capacity Building:(Cost $8.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- Moderate Implementation Status and Key Decisions The project was approved by the Board on March 26, 2020. On April 30 the Steering Committee was established as determined in the Loan Agreement as a condition of effectiveness. Through regular meetings and communication with the counterparts the team is working towards the creation of the PIU and the finalization of the project operations manual to ensure project effectiveness within the effectiveness deadline. 6/22/2020 Page 1 of 8 The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High -- Moderate Macroeconomic Moderate -- Moderate Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program High -- High Institutional Capacity for Implementation and High -- High Sustainability Fiduciary Moderate -- Moderate Environment and Social Moderate -- Moderate Stakeholders High -- Moderate Other Low -- Low Overall High -- Moderate Results PDO Indicators by Objectives / Outcomes Improved Efficiency IN00854097 ►Reduction of operating costs of the tax and customs administration relative to revenue (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.77 -- 1.77 1.67 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: Current tax and customs budget of MOF (Colones) in period N / total revenues in period N (Colones) IN00854100 ►Reduction in the time to produce consolidated financial statements (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 -- 30.00 7.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the time reduction, in number of days, in having internally available consolidated Comments: financial statements of the central government, legislative and judicial 6/22/2020 Page 2 of 8 The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) Improved Effectiveness IN00854098 ►Reduction in evasion of Value Added Tax as percent of GDP (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.36 -- 2.36 1.50 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: This indicator measures non-compliance with the Value Added Tax (VAT). IN00854131 ►Reduction in evasion of Corporate Income Tax as a percent of GDP (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.86 -- 5.86 3.72 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: This indicator measures non-compliance with Income Tax (ISR). IN00854133 ►Share of the General Government budget executed directly through the new IFMIS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 100.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Percentage of budget that is directly executed including payment to final beneficiary through the Comments: Integrated Financial Management Information System (IFMIS) Improved client orientation IN00854099 ►Reduction in the time taken to pay Value Added Tax (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 74.00 -- 74.00 24.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: The indicator measures the time taken to prepare, file and pay value added or sales tax. IN00854132 ►Reduction in the time taken for customs clearance (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 72.00 -- 72.00 36.00 6/22/2020 Page 3 of 8 The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: Time for clearance and inspections required by customs authorities Intermediate Results Indicators by Components Strengthening public expenditure management IN00854135 ►Proportion of institutions from the national budget that have undertaken evidence-based methodologies for improving expenditure effectiveness (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.00 -- 16.00 100.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Proportion of institutions from the national budget (Central government, Legislative, Judicial, Ombudsman Comments: Office, and Comptroller's Office) that undertake evidence-based methodologies for improving expenditure effectiveness IN00854142 ►Institutions executing budget through IFMIS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 23.00 -- 23.00 73.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: Number of institutions that are executing budget through IFMIS IN00854146 ►Share of institutions using IFMIS to generate consolidated financial statement complying with International Public Sector Accounting Standards (IPSAS) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 10.00 100.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures institutions that are generating consolidated financial statements complying with Comments: International Public Sector Accounting Standards (IPSAS) IN00854148 ►Electronic payments made to beneficiaries through TSA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 85.00 -- 85.00 100.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: Percentage of payments (value) registered using TSA IN00854149 6/22/2020 Page 4 of 8 The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) ►Integrated debt management system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 4 different systems of 4 different systems of Integrated debt internal and external debt internal and external management system Value -- are operating without debt are operating inter-operable with integration without integration IFMIS Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the integration of the 4 debt management systems inter-operable with IFMIS, so Comments: that generate consolidated internal and external debt reports IN00854150 ►Reduction in time for generation of debt statistics (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 45.00 -- 45.00 7.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: This indicator measures the time reduction, in number of days, in having consolidated statistics of debt Enhancing efficiency and client orientation of tax administration IN00854134 ►Increase in Taxpayers that are satisfied with tax services (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No perception No perception Increase baseline by Value -- satisfaction measured satisfaction measured 20% Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the perception by taxpayers on the timeliness, effectiveness and client orientation Comments: of tax services IN00854138 ►Share of calls attended by the call center (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 -- 25.00 90.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: This indicator measures the level of citizen attention by phone IN00854141 ►Taxpayer services available on mobile applications (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 25.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 6/22/2020 Page 5 of 8 The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) Comments: Number of services made available to taxpayers through mobile apps IN00854143 ►Proportion of tax audits that generate tax revenues (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 66.00 -- 66.00 75.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: This indicator measures the impact of audits on revenue collection Enhancing customs controls and services IN00854136 ►Traders that are satisfied with customs services (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No perception No perception Increase baseline by Value -- satisfaction measured satisfaction measured 20% Date 01-Jan-2020 -- 01-Jun-2020 30-Nov-2027 Comments: This indicator measures the perception by traders on the timeliness, effectiveness and client orientation IN00854139 ►Percentage of inspections carried out by Customs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 10.00 6.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the level of control that Customs exerts on the entry of goods through the Comments: physical review of import declarations IN00854144 ►Use of advance declarations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 -- 13.00 30.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the level of facility granted by Customs and the willingness of operators to comply Comments: with the requirements required for the application of the advance declaration IN00854147 ►Proportion of customs audits that generate tax revenues (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 -- 25.00 70.00 6/22/2020 Page 6 of 8 The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 Comments: This indicator measures the impact of audits on revenue collection Strengthening the technological, institutional and operational environment IN00854137 ►Interoperability of MOF and other external systems (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the number of systems in the MOF that are connected via the interoperability bus Comments: using web services or other similar and appropriate mechanisms that permit these systems to share data within the MOF and potentially externally. IN00854140 ►Availability of Information Management Systems (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 95.00 -- 95.00 99.90 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the level of stability of PFM, Tax and Customs information systems, as the lowest Comments: daily information systems’ up-time measured during the last month. IN00854145 ►Reduction of staff payments overpaid (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10,000,000.00 -- 10,000,000.00 5,000,000.00 Date 01-Jan-2020 -- 01-Jun-2020 31-Mar-2026 This indicator measures the amount of payments paid by mistake on payroll incurred as a result of delay Comments: of information regarding changes on employee´s appointments (e.g. layoffs) Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P172352 IBRD-90750 USD 156.64 156.64 0.00 0.00 156.64 0% Effective 6/22/2020 Page 7 of 8 The World Bank Implementation Status & Results Report Costa Rica Fiscal Management Improvement Project (P172352) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P172352 IBRD-90750 26-Mar-2020 06-Apr-2020 -- 31-Mar-2026 31-Mar-2026 Effective Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/22/2020 Page 8 of 8