The World Bank Board of Directors has approved a US$1 billion project aimed at supporting Brazil's initiatives to enhance tax and financial stability, promote sustainable finance, and improve social inclusion. Johannes Zutt, World Bank Country Director for Brazil, stated that the project aligns with a broader package of initiatives consistent with the joint strategy launched with the Brazilian government last year. "The goal is to create a stronger, environmentally friendly, and socially inclusive economy," said Zutt.
The initiative focuses on reducing poverty and inequality through various measures, including reforming the consumption tax. The World Bank will continue providing technical assistance to Brazil's federal government by offering tools such as a tax simulation tool for excise taxes.
Additionally, the project aims to enhance social assistance programs and improve CadUnico, enabling better income assessments for approximately 19 million people. The re-introduction of the Bolsa Verde Program is also part of this initiative, targeting at least 55,000 families in the Amazon by December 2026. This program is expected to benefit women significantly while contributing to forest conservation and poverty alleviation.
Efforts are also being made to increase federal school feeding resources spent on family farmers from 40 percent in 2023 to 50 percent by 2026. This change aims to support local economies and sustainable agricultural practices while improving school meal quality.
The project supports Brazil's multi-year plan for 2024-27 and its Ecological Transformation Plan (ETP).
In addition to this major initiative, five other projects have been approved for Brazilian states totaling US$516 million in financing. These projects focus on fiscal sustainability, digital transformation, transportation improvements, road safety enhancements, and environmental governance.
In Espírito Santo, a US$162.4 million investment will improve road infrastructure resilience and safety where road conditions are poor and fatalities high. Rio Grande do Sul will receive US$50 million under the Progestão Program for fiscal sustainability improvements in public management.
São Paulo's Metro Line 2 Extension Project will be supported by a US$250 million investment aimed at reducing congestion and improving job accessibility through an extended metro line incorporating low-carbon solutions.
Sergipe will benefit from a US$53.6 million investment in digital transformation efforts focused on expanding broadband access and enhancing energy efficiency across public services.