International Studies Program
Guatemala - Fiscal Administration Project
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Guatemala Fiscal Administration Project | |
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Client: |
Ministry of Finance of the Government of Guatemala |
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Funding Source: |
USAID |
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Type of Grant: |
Cost Compensation |
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Period Funded: |
January 1, 1989 - December 31, 1992 |
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Location: |
Guatemala City |
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Amount: |
$1,057,687 |
Project Narrative
Project Publications
Project Team
Project Narrative:
The Guatemala Fiscal Administration Project was a joint consortium between the Policy Economics Group of KPMG Peat Marwick and the International Studies Program of the Andrew Young School at Georgia State University. The goal of the project was to assist the Government of Guatemala in a comprehensive modernization of its system of fiscal administration. The Project had four specific objectives:
1. Improvement in the Allocation of Resources through: (1) identifying the underlying structural problems in the fiscal system that were not in step with the economic programs of the country, and that distorted economic choices in ways that caused losses to society; (2) modernizing, simplifying and improving the administration of the fiscal system, and eliminating the resource costs that operational inefficiencies impose on society; and (3) providing better information to assist government officials in making fiscal decisions.
2. Create greater Fairness in the Distribution of Tax Burdens and Expenditure Benefits by development of a more horizontally equitable fiscal administration system whereby like taxpayers could be treated the same way.
3. Mobilization of Resources to Cover the Cost of Public Services through improved administration of the tax system and the system for delivering public services.
4. Improved Government Ability to Plan and Monitor its Fiscal Decisions that was accomplished by developing the institutional capability to continue this work. The project included a substantial training and data computerization program, as well as the development of analytic models. The purpose of these components was to put permanently in place within the Ministry, the capability to evaluate the implications for future revenue and expenditure, and for income distribution and growth, of changes in public policy or external economic conditions. These enhanced the Ministry’s ability to monitor the efficiency of its operation, and to plan its programs rationally.Cutting across all of the objectives was the goal of decentralization. It was the goal of this project to promote decentralized participation in government decision making, strengthened capacity of local governments to finance and deliver services, and decentralized central government fiscal administration activities.
Based on the work of this project, the Guatemalan government passed a comprehensive tax reform passed Congress in 1992. The reforms broadened the base of the income tax and VAT collections increased as a share of GDP. It significantly improved horizontal equity of the tax system, it did not harm vertical equity, it eliminated harmful economic distortions and it simplified the tax structure, thereby facilitating administration and compliance.
Guatemala Fiscal Administration Reform Project
Techical Memorandum Series
Technical Memorandum No. 1: Customs and Export Incentive Administration Reform
By Kenneth Stacey, February 1989 (Revised November 1989)
Technical Memorandum No. 2: Taxation of Business, Commercial Policy, and Industrial Policy
By Charles E. McLure, Jr., February 1989
Technical Memorandum No. 3: Tax Administration
By Oakley Austin, February 1989
Technical Memorandum No. 4: Public Enterprise Sector
By Melissa Birch, February 1989
Technical Memorandum No. 5: Local Government Finances
By David Greytak, February 1989
Technical Memorandum No. 6: Internal Indirect Taxation
By John F. Due, February 1989
Technical Memorandum No. 7: Income and Payroll Taxes
By Jorge Martinez, February 1989
Technical Memorandum No. 8: Tax and Fiscal Analysis and Modeling Capabilities
By Thomas Vasquez, Sergio Madrigal, and Francis Greaney, February 1989
Technical Memorandum No. 9: Analysis of the Budgeting System
By Darwin Johnson and Jaime Porras, February 1989
Technical Memorandum No. 10: Company and Individual Income Taxation: Structure and Administration
By Victor Thuronyi, July 1990
Technical Memorandum No. 11: Indirect Taxation in Guatemala
By Melissa H. Birch and John F. Due, July 1990
Technical Memorandum No. 12: Restructuring of the Corporate Income Tax in Guatemala
By Jack M. Mintz, February 1991
Technical Memorandum No. 13: Marginal Effective Tax Rates on Capital Income in Guatemala
By George R. Zodrow, October 1990
Technical Memorandum No. 14: Tax Incentives in Guatemala
By Fernando A. Ramos and Wayne R. Thirsk, May 1991
Technical Memorandum No. 15: Computerization of Fiscal Administration in Guatemala
By Malcolm G. Lane, January 1991
Technical Memorandum No. 16: Preliminary Report on the Taxation of Financial Institutions in Guatemala
By Gerard M. Brannon, November 1990
Technical Memorandum No. 17: Fiscal Treatment of the Transport Sector in Guatemala
By Roger S. Smith, December 1990
Technical Memorandum No. 18: The Taxation of Foreign Enterprises and Foreign Source Income
By John Mutti, March 1991
Technical Memorandum No. 19: Improving the Budgeting Process
By Dale McOmber, March 1991
Technical Memorandum No. 20: Guatemala Government Budgeting: A Survey of the Budget System and Practices
By Jaime S. Porras, April 1991
Technical Memorandum No. 21: The Guatemalan Public Enterprise System: Selected Issues
By Melissa H. Birch, June 1991
Technical Memorandum No. 22: Excise Tax Administration-Guatemala: Issues and Findings
By Kenneth Stacey, May 1991
Technical Memorandum No. 23: The Property Tax In Guatemala: Its Present Structure and Future Prospects
By William F. Fox, September 1991
Technical Memorandum No. 24: Training in Fiscal Policy Analysis and Fiscal Models
By Howard Nester, August 1992
Technical Memorandum No. 25: The Guatemala Business Income Tax Model: User’s Manual
By Ned Newland and Stewart Beckwith, September 1992
Technical Memorandum No. 26: The Guatemala Business Income Tax Model: Technical Manual
By Ned Newland and Stewart Beckwith, September 1992
Technical Memorandum No. 27: Taxes on International Trade
By Daniel L. Wisecarver, October 1992
Technical Memorandum No. 28: The Indirect Tax Model for Guatemala: User’s Manual
By Francis Greaney, Lorris Mizrahi, and Ranel Covert, November 1992
Technical Memorandum No. 29: The Indirect Tax Model for Guatemala: Technical Manual
By Francis Greaney, Lorris Mizrahi, and Ranel Covert, November 1992
Technical Memorandum No. 30: The Computable General Equilibrium Model for Guatemala: User’s Manual
By Carlos Bachrach and Ranel Covert
Technical Memorandum No. 31: The Computable General Equilibrium Model for Guatemala: Technical Manual
By Carlos Bachrach and Ranel Covert
Technical Memorandum No. 32: The Incidence of the Guatemalan Tax System
By Harvey Galper and Fernando A. Ramos, December 1992
Technical Memorandum No. 33: The Guatemalan Tax Reform: Final Policy Report
By Roy Bahl, Jorge Martinez, and Sally Wallace, March 1994
Project Team:
Kenneth Stacey, Charles McLure, Oakley Austin, Melissa Birch, David Greytak, John Due, Jorge Martinez, Thomas Vasquez, Sergio Madrigal, Francis Greaney, Darwin Johnson, Jaime Porras, Victor Thuronyi, Jack M. Mintz, George R. Zodrow, Frenando A Ramos, Wayne Thirsk, Malcolm G. Lane, Gerard M. Brannon, Roger S. Smith, John Mutti, Dale McOmber, William F. Fox, Howard Nester, Ned Newland, Stewart Beckwith, Lorris Mizrahi, Ranel Covert, Sally Wallace, Harvey Galper, Carlos Bachrach, Daniel L. Wisecarver
Roy Bahl - Project Co-Director
Jorge Martinez-Vazquez - Project Co-Director
Wayne Thirsk - Tax Policy Reform Expert
Sally Wallace - Associate Director of Fiscal Research
Melissa Birch - Strategic Management
William F. Fox - Finance, Taxation, Economic Development
Malcolm G. Lane - Computer Information Systems, Tax Policy Expert
Charles McLure - Tax Policy Specialist
Jack M. Mintz - Tax Policy Expert