The average tax burden for the region is 13.4% of GDP, while the average public expenditure increased from 18.7% in 2013 to 19.2% at the end of 2014.
From the Introduction of the report Macrofiscal profiles in Central America, from Instituto Centroamericano de Estudios Fiscales (Icefi):
The fiscal situation has worsened in Central America in recent months, mainly due to a structural lack of sufficient resources to meet the needs of Central Americans and realize many of the commitments made by governments.
The technical redefinitions that make up a successful tax reform should be based on a reformulation of the social contract which establishes national goals.
Nacion.com reports that "According to Augusto de la Torre, Chief Economist at the World Bank, the fiscal debate is more than just an economic debate, it is almost a philosophical debate about the kind of state we want to have."
The government will allocate resources to strengthen tax administration and public finances.
A press release from The World Bank
Under the budgetary support provided through a US$86 million credit, the government is committed to strengthen the national public safety strategy, deepen the focus on prevention, and development of local efforts. It will include, for instance, the distribution of violence-prevention toolkits in at least 200 schools around the country, as well as the implementation of a comprehensive security plan in at least 10 municipalities in the country’s center, north and east. The Bank will also help build institutional capacities against money laundering and an improved database for crime and violence.