The World Bank are set to give a USD12 million financial package to the Maldives to strengthen the archipelago’s public sector financial management systems.
Building on the existing Public Financial Management Systems Strengthening Project, the additional financing will help improve planning and budgeting, debt and cash management, financial reporting, procurement, and State‐Owned Enterprise monitoring and oversight, the World Bank said in a statement.
According to the statement, Maldives’ finance ministry has made progress in reducing the fiscal deficit from 10.6 percent of GDP in 2016 to 2.5 percent in 2017 and improved its revenue collection and shifted from recurrent to capital expenditure to support public investments.
“The Ministry has also brought more transparency to its budget and financial information through an integrated financial management information system. Further to that, the Auditor General has taken steps to disclose audit reports on public debt and guarantees,” the statement read.
“Financial transparency and accountability are key factors to improve public service efficiency and effectiveness,” Idah Z. Pswarayi-Riddihough, World Bank County Director for Sri Lanka and Maldives was quoted commending the Maldives government for its commitment to macroeconomic and fiscal reforms.
The project will be funded by an International Development Association (IDA) grant and credit and implemented over the period of four years.