The World Bank has approved a US$12 million grant and credit to help improve the efficiency of the Maldives public finance management.
The four-year project agreement was signed in Malé on Tuesday by Dr Idah Pswarayi-Riddihough, country director for Sri Lanka and the Maldives, and Finance Minister Ahmed Munawar.
Munawar told reporters at the ceremony that the government will start publishing monthly details of income and expenditure with commentary before the end of the year.
According to the World Bank, the additional financing will “help improve planning and budgeting, debt and cash management, financial reporting, procurement, and State‐Owned Enterprise monitoring and oversight.”
“The expected results of the additional financing include: stronger preparation and prioritisation of high impact and affordable public investments, optimised cost and risks of public debt, and improved public procurement. The modernization of these core public financial management functions aims to ultimately improve the effectiveness and efficiency of public services.”
The World Bank commended progress in reducing the country’s fiscal deficit to 2.5 percent in 2017, down from 10.6 percent the previous year.
“An integrated financial management information system rolled out by the Ministry has improved the quality and access of financial information and the Auditor General has taken progressive steps to disclose audit reports on public debt and guarantees,” the World Bank said.