WASHINGTON, July, 2014— World Bank Board approved an IDA grant of US$ 6.5 million to support the strengthening of the Public Financial Management (PFM) System in Maldives. The project will help strengthen the government institutions to make informed decisions on fiscal adjustments in an efficient manner which will impact the economy of the country positively.
The government’s key policy priorities and the objectives are set out in the Government’s Manifesto. Translating these into a medium-term development strategy and program calls for a high level of fiscal discipline. The proposed PFM Systems Strengthening Project aims to contribute to this long-term and overarching goal by addressing the most urgent PFM weaknesses.
“A key challenge for the country will be to ensure that the government’s social and economic goals are fully consistent with the urgent need for fiscal consolidation to restore fiscal and debt sustainability” said Francoise Clottes, Country Director, Sri Lanka and Maldives. “We are happy to assist the government in this endeavor with both financial and technical support” added Clottes
The project will help enhance budget credibility, transparency, and financial reporting of central government finances. The entry points for intervention will be the Economic Policy Planning Section, National Budget Formulation and Analysis Section, Debt Management Division, Tender Evaluation Section, Secretariat of the Privatization and Corporatization Board, and Treasury and Public Accounts Division; internal audit sections; and line ministries.
“The project design also includes support to strengthen the institutional framework of key Ministry of Finance and Treasury functions and to enhance knowledge transfer through on-the-job training by technical experts” said Jiwanka Wickramasinghe Task Team Leader of the Project.