The development objective of the First Programmatic Reducing Vulnerabilities for Growth Development Policy Credit (DPC) for Honduras is to assist the government in strengthening fiscal management and institutional mechanisms and programs responsible for an integrated violence prevention strategy.
The DPC operation supports progress towards the Country Partnership Strategy objectives of expanding opportunities and reducing vulnerabilities and of improving citizen security. Specifically, the operation supports four areas that are central to the reform program:
(1) tax administration, focused on improving taxpayer compliance;
(2) civil service reform, focused on the rationalization of the public wage bill by delinking teachers’ salary adjustments from those reflected in the private sector's minimum wage;
(3) pension reform, designed to lessen contingent fiscal vulnerabilities by reducing the public pension institutions' actuarial deficits, and
(4) citizen security reform, focused on strengthening institutional coordination mechanisms and programs needed for an integrated violence prevention strategy . The reforms supported by this operation are expected to have a positive impact on poverty and inequality.
Document Date: 2011/11/03. Document Type: Program Document. Report Number: 65556.Volume No: 1 of 1
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