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Viewing cable 08LAPAZ545, BOLIVIAN REPORT ON FISCAL TRANSPARENCY

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Reference ID Created Released Classification Origin
08LAPAZ545 2008-03-10 13:59 2011-08-25 00:00 UNCLASSIFIED Embassy La Paz
VZCZCXYZ0018
PP RUEHWEB

DE RUEHLP #0545 0701359
ZNR UUUUU ZZH
P 101359Z MAR 08
FM AMEMBASSY LA PAZ
TO SECSTATE WASHDC PRIORITY 6775
UNCLAS LA PAZ 000545 
 
SIPDIS 
 
SIPDIS 
 
PASS TO EEB/IFD/OMA FOR ANDREW SNOW AND RICHARD FIGUEROA 
 
E.O. 12958: N/A 
TAGS: EAID ECON PREL
SUBJECT: BOLIVIAN REPORT ON FISCAL TRANSPARENCY 
 
REF: SECSTATE 16737 
 
 
1.  In Bolivia, a proposed national budget is presented to 
the Congress toward the end of the year (November or 
December).  At that time, the Administration makes public its 
budget assumptions and what is being  presented to Congress. 
Congress considers the budget proposals and is then expected 
to approve a final version by the end of the year. 
 
2.  Once approved, the national budget is available on-line 
on the Finance Ministry's website.  It is also available in 
print.  All revenue and expenditure figures are included in 
the publicly-available budget.  On the whole, the information 
is both meaningful and accurate; however, some of the 
methodology used for data collection may be problematic, 
principally because of a lack of institutional capacity in 
small municipalities.  An additional area of concern is the 
growing size and lack of institutional capacity within 
state-run enterprises.  The political disposition for 
transparent fiscal administration appears to continue to 
exist; however, institutional capacity to manage a growing 
budget both within state-owned companies and within the 
smaller, municipal (and even departmental) governments may 
cause the accuracy of budget reporting to be called into 
question. 
 
3.  USAID has provided support for fiscal transparency in 
several different ways.  Currently, USAID is supporting a 
detailed modeling exercise on intergovernmental fiscal 
relations.  The model can be used to conduct detailed 
analyses informing the three levels of government (national, 
departmental, and municipal) on different scenarios on the 
division of fiscal powers and functions across these levels 
of government.  USAID is working to engage the national 
government more directly and actively in this exercise. 
USAID is funding technical assistance and software 
development to improve financial management and transparency 
at the departmental level.  This includes support for the 
Public Management Software System ("SGP ") which is used by 
government staff from five of Bolivia's nine departments to 
monitor public investments, including budget execution. 
USAID plans to undertake a major new activity to strengthen 
municipal service delivery and local democracy in the coming 
months.  This project may include support for financial 
management strengthening in selected municipalities.  This 
could likely build upon limited past municipal financial 
management work USAID has supported and that concluded in 
2006. 
 
4.  Both the World Bank and the International Monetary Fund 
(IMF) report on Bolivia's compliance with standards and codes 
covering fiscal transparency.  Two recent reports are 
available on the IMF website:  (1) Bolivia: Report on the 
Observance of Standards and Codes Data Module, Response by 
the Authorities, and Detailed Assessment Using the Data 
Quality Assessment Framework (DQAF); IMF Country Report 
07/283; August 2, 2007; and (2), 2007 Article IV Consultation 
Staff Report, IMF Country Report 07/248; June 27, 2007. 
 
 
GOLDBERG