Governments across Latin America and the Caribbean have made major investments in digital public infrastructure. Virtually all countries in the region now operate public financial management systems (PFMIS) and tax management systems (TaxMIS), covering an average of 79% of government revenues. But the potential of these systems remains largely untapped: while descriptive analytics are common, the use of more sophisticated tools, such as diagnostic and predictive analytics, lags far behind. The result? Billions in potential savings are being left on the table.

The Value of Government Analytics, When Done Right

Governments that use even basic data tools are already seeing results:

• Chile saved $180 million by reducing missed medical appointments through targeted reminders based on patient records.
• Guatemala cut student dropout rates by 9% by identifying and supporting at-risk students through predictive analytics.
• Ecuador and Peru recovered millions in tax revenue using analytics to detect evasion and optimize enforcement.
• Brazil achieved a 4% reduction in procurement costs, improving efficiency by using tax data to benchmark pricing.

These examples show that government analytics isn’t a distant ambition—it’s already transforming policy outcomes where it’s applied.

The Digital Divide in Government Analytics

Despite nearly universal adoption of MIS systems, their analytical potential is underused:

• 96% of governments use descriptive analytics—what happened.
• But only 55% use diagnostic analytics—why it happened.
• And just 50% use predictive analytics—what is likely to happen next.

This imbalance is most stark in spending-related functions. Tax authorities are often well-resourced and data-savvy, but procurement, education, and human resources remain analytical blind spots.

Key constraints include:

• Lack of talent pathways: Only 12% of governments offer a formal career track for data analysts.
• Insufficient training: While 62% of governments provide analytics training, only 25% assess these skills.
• Fragmented systems: Weak interoperability and the absence of standardized access protocols limit how data can be shared and used.

Fiscal Potential: Billions in Untapped Savings

The financial upside of government analytics is massive. In Brazil, simulations of wage bill reforms suggest potential fiscal savings between $12.5 billion and $34.7 billion by 2030. Yet most governments still make critical decisions without real-time evidence or foresight.

Analytics is not just a back-office tool—it can become a strategic lever for smarter governance.

Unlocking the Future of Public Sector Performance

The report highlights three key levers for action:

1. From Descriptive to Predictive
   Governments must evolve from simply reporting data to actively using it for forecasting and policy design—especially in spending-heavy sectors like health and education.
2. Build the Infrastructure and Talent
   A robust analytics ecosystem requires:
   • Fully digitalized and interoperable data systems
   • Formalized data access protocols and quality controls
   • Dedicated units and career paths for analysts
3. Make Analytics Actionable
   Training decision-makers to understand and act on analytics is as vital as training data teams. Analytics must inform not just reports, but real decisions.

Key Takeaway

LAC governments are rich in data but poor in action. By closing the gap between data collection and evidence-based decision-making, they can unlock billions in savings, deliver better public services, and restore citizen trust. What’s needed is not more data, but the will and infrastructure to use it.