This report was prepared in response tothe request from the Government of Brazil to evaluate theexperiencia de Avaliacao do Plano Plurianual (PPA's)evaluation system and propose ways it could be strengthened.In our understanding, the genesis of the PPA as aninstrument of government planning and management and itsphilosophy was circa 1999. It was then that the decision wasmade to apply a particular planning model piloted with a setof priority projects (Brazil em Acao) in the 1996-99 PPA tothe entire set of government activities in the PPA 2000-03.The current state of the PPA reflects a series ofevolutionary changes since then, with the improvements inits evaluation framework being one of them. Because of thisorigin, understanding and evaluating the PPA evaluationsystem will require placing it in the context of theevolution and the effectiveness of the whole PPA, asenvisioned in its original model and its subsequentadaptations. The point of departure is the observation thatthe primary challenge is to make the PPA effective as aninstrument to make the federal administration moreperformance oriented. Improvements to the evaluation systemas such, though welcome and needed, should be a secondaryobjective for the government, as this is only a limited partof the whole endeavor.