[{"bbox": [83, 112, 1120, 222], "category": "Text", "text": "In fact, safeguarding the human rights of all, especially those living in vulnerable situations (such as indigenous people, women, and the young) who, for example, currently do not receive social spending support, is a core function of the State. By increasing the State's capacity (mainly via Outcome 2 and 3), this action will not only help the Government of Guatemala to collect more, but to spend it better."}, {"bbox": [83, 252, 181, 278], "category": "Section-header", "text": "### Disability"}, {"bbox": [83, 278, 1120, 386], "category": "Text", "text": "As per OECD Disability DAC codes identified in section 1.1, this action is labelled as D1. This action is not targeting persons with disabilities specifically. However, they are included in the action and as part of its target groups. Accessibility to activities, services and information of persons with disabilities will be promoted throughout the programme."}, {"bbox": [83, 416, 198, 442], "category": "Section-header", "text": "### Democracy"}, {"bbox": [83, 442, 1120, 762], "category": "Text", "text": "Taxation and spending are inexorably linked to a representative, accountable, and well-functioning democracy. The action has specific activities that directly contribute to strengthen this social contract between citizens and the State, namely the implementation of a Tax Ombudsman (activity 3.4 in Outcome 3) and improving institutional transparency and an integrity framework (activity 2.3 in Outcome 2). The former has proven to be an effective way of addressing and speeding up the resolution of issues between tax departments and taxpayers, with successes in diverse contexts and countries such as Pakistan, Indonesia, South Africa and Canada, among others. The latter, an integral part of an Open Government approach, is a necessary condition for an accountable administration and an engaged citizenry, fundamental pillars of a liberal democracy. In addition, building on the action's outcome of fighting tax avoidance and tax evasion, policy recommendations will be provided on enhancing the progressivity of the tax system, increasing taxes for richest percentiles of the income distribution and bigger companies. Increasing DRM, through progressive taxation, will translate into higher capacities for public investments and public services, hence it will be an incentive to formalise and pay taxes."}, {"bbox": [83, 793, 473, 821], "category": "Section-header", "text": "### Conflict sensitivity, peace and resilience"}, {"bbox": [83, 819, 1120, 873], "category": "Text", "text": "The objective of the action is to increase DRM as a means to increase tax revenue. Thus, it will contribute to improving the economic resilience of Guatemala, which ranks among the lowest in the world¹⁰,¹¹"}, {"bbox": [83, 956, 322, 982], "category": "Section-header", "text": "### Disaster Risk Reduction"}, {"bbox": [83, 982, 1120, 1193], "category": "Text", "text": "Guatemala is one of the most vulnerable countries to natural disasters, including earthquakes, volcanic activity, and hurricanes, and is one of the most overall vulnerable to climate change (World Risk Report 2020). When impacted by natural disasters, the already weak fiscal position of the country further shrinks, precluding an effective and efficient disaster response. The Programme will contribute to addressing this risk by increasing tax revenue. Indeed, the action aims to improve the fiscal position of the Government of Guatemala, which will increase available resources for a potential disaster management response; and through the design of a business continuity strategy for tax services to address disaster risk management, as outlined in activity 2.2 within Outcome 2."}, {"bbox": [83, 1227, 396, 1253], "category": "Section-header", "text": "### Other considerations if relevant"}, {"bbox": [83, 1253, 1120, 1413], "category": "Text", "text": "Improving domestic revenue mobilisation in an equitable and sustainable way can significantly underpin social and economic development, by improving fiscal space for social spending. In addition, building on the action's outcome of fighting tax avoidance and tax evasion, policy recommendations will be provided on enhancing the progressivity of the tax system, increasing taxes for the richest percentiles of the income distribution and bigger companies. Increasing DRM, through progressive taxation, will translate into higher capacities for public investments and public services, hence it will be an incentive to formalise the economy and pay taxes."}, {"bbox": [72, 1458, 426, 1486], "category": "Section-header", "text": "## 3.4. Risks and Lessons Learnt"}, {"bbox": [72, 1570, 1130, 1617], "category": "Footnote", "text": "¹⁰ Hallegate, Vogt-Schilb, Bangalore y Rozenberg. 2017. Unbreakable: Building the Resilience of the Poor in the Face of Natural Disasters. Climate Change and Development Series. Washington, DC: World Bank."}, {"bbox": [72, 1615, 922, 1638], "category": "Footnote", "text": "¹¹ World Bank (2017). Resiliencia de las finanzas públicas ante el riesgo de desastres: El Salvador, Guatemala."}, {"bbox": [1105, 1638, 1129, 1660], "category": "Page-footer", "text": "13"}]