Myanmar secures US$55 million in financing to support modernization of public finance system
April 2, 2014
WASHINGTON, D.C., April 2, 2014 – The World Bank’s Board of Executive Directors today approved a US$30 million credit from the International Development Association (IDA) for Myanmar’s Modernization of Public Finance Management Project. The Australian government (US$8.5 million) and the UK’s Department for International Development (UKAID) (US$16.5 million) will co-finance the project through a multi-donor trust fund for Myanmar.
The project aims to support efficient, accountable and responsive delivery of public services through the modernization of Myanmar’s public financial management systems. The project will also help strengthen revenue administration, which will increase the effectiveness of tax and non-tax revenue mobilization. Increased revenues in turn will create fiscal space for increasing expenditure on public services that will help reduce poverty and promote shared prosperity.
The project will also improve the efficiency of public service delivery through a more strategic planning and budgeting process that directs resources to the highest priority areas, and through more credible budget management system that delivers resources as intended. Similarly, the project will help improve accounting and reporting of budget execution – how public resources are spent – and strengthen accountability for service delivery.
Improvements in tax compliance are expected to make more funds available to finance critical human and infrastructure services while maintaining fiscal discipline. Improved availability and management of public finance data will facilitate better analysis and policymaking and more strategic and transparent use of public funds.
The ultimate beneficiaries of the project will be the people of Myanmar who stand to gain from improvements in both the quantity and quality of public services such as education, health services and water and sanitation.
The US$30 million IDA credit in support of modernization of Myanmar’s public finance management is part of the World Bank Group’s rapidly growing program support for the country. During his visit to Myanmar at the end of January 2014, President Jim Yong Kim announced plans by the World Bank Group’s for a $2 billion multi-year development package for Myanmar. This will include projects to help improve agriculture, access to energy and health services, and to provide support for other key development priorities.
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