Digital Fiscal Reform and Fiscal Efficiency: Evaluation of the Adoption of the Costa Rica SUPRES Platform

Digital Treasury Reform EvaluatingCosta Rica’sSUPRES Platform Adoption Maria Chiara Cavalleri, Ivania García-Cascante, Andualem Mengistu,Gerardo Uña, and Mona Wang WP/26/77 IMF Working Papersdescribe research inprogress by the author(s) and are published toelicit comments and to encourage debate.The views expressed in IMF Working Papers are 2026APR IMF Working Paper Fiscal Affairs Department and Western Hemisphere Department Digital Treasury Reform and Fiscal Efficiency: Evaluating Costa Rica’s SUPRES Platform Adoption Prepared by:Maria Chiara Cavalleri, Ivania García-Cascante, Andualem Mengistu, Gerardo Uña, and Mona Wang Authorized for distribution by Mitali Das IMF Working Papersdescribe research in progress by the author(s) and are published to elicitcomments and to encourage debate.The views expressed in IMF Working Papers are those of the ABSTRACT:This paper evaluates the impact of Costa Rica’s adoption of SUPRES, a digital treasury platformthat centralizes and automates cash transfer payments for social assistance programs. While most GovTechliterature has focused on service delivery improvements, the effects of digitalization on treasury operationsremain largely unexplored. Addressing this gap, we provide an empirical assessment of how GovTech reformssupport treasury efficiency by improving cash management and reducing opportunity costs of borrowing fortreasury. Using administrative data and survey evidence, this analysis finds that average lead times for theanalyzed social cash programs fell with the adoption of SUPRES - from 9–13 days before the reform to 2-3days after-, generating estimated opportunity cost savings for the Treasury exceeding USD 4 million, at a WORKING PAPERS Digital Treasury Reform and FiscalEfficiency: Evaluating Costa Rica’s Prepared byMaria Chiara Cavalleri,Ivania García-Cascante,AndualemMengistu,Gerardo Uña,andMona Wang* Contents Acronyms......................................................................................................................................................6 I.Introduction...........................................................................................................................................7II.Overview of Costa Rica’s Social Assistance System...........................................................................8 A.Treasury management before supres..............................................................................................9Institutional Fragmentation in PFM practices and payment processesB.Treasury management after SUPRES adoption............................................................................11 IV.Assessment of the SUPRES Reform.................................................................................................16 A.Evaluation of Treasury’s Cash Management EfficiencyImprovements.........................................16 Empirical Approach.............................................................................................................................16Methodology.......................................................................................................................................17MainResults.......................................................................................................................................18Fiscal Implications: Monetizing the cash management Efficiency improvements..............................23 B.Improvements in administration and operation efficiency: results from a survey..........................27C.Further benefits ofSUPRESregardingfinancial inclusion............................................................29 FIGURES Figure 1.Social spending and institutions involved......................................................................................8Figure 2. Flow of funds pre-and post-SUPRES.........................................................................................11Figure 3. Key reforms that improved social program management, financial inclusion, public fundadministration, and targeted social assistance...........................................................................................14Figure 4. Costa Rica’s roadmap to increase social assistance efficiency..................................................15Figure 5. Lead Time between TSA Cash Release and Receipt..................................................................18Figure 6. Lead Time between Cash Release and Receipt.........................................................................21 TABLES Table 1. Cash Transfers Social Programs Payments Methods...................................................................10Table 2. Beneficiaries in SUPRES (2023)...................................................................................................12 Acronyms BANHVIHousing Mortgage BankBNCRBanco Nacional de Costa RicaCCSSCaja Costarricense de Seguro SocialCONAPDISConsejo Nacional de P