The World Bank has approved a US$17.5 million project to help Laos strengthen its public financial management system through digital tools and improved staff capacity, aiming to make government spending more transparent and accountable.
The project, named Enhancing Public Financial Management through Information and Communication Technology and Skills (Phase II), is funded by a low-interest loan from the World Bank Group’s International Development Association. According to the World Bank media release.
The new phase will enable the Ministry of Finance to improve budget planning, implementation, and reporting across the government. The goal is to make public spending more transparent and ensure that financial data is accurate and accessible.
“Essentially, this means that all agencies or offices using the state budget will only spend money within the official system,” World Bank Country Manager for Laos, Mr Khwima Nthara was quoted as saying.
“This helps the government ensure transparency and accountability, so that Lao taxpayers get improved value for money, and will also facilitate timely decision-making.” he added.
The second phase builds on the progress made since 2019, when the first project began. It supports the rollout of an Integrated Financial Management Information System and trains staff at government spending units to prepare budgets and record financial activities within the national budget system.
The project is part of the World Bank’s wider Public Financial Management programme, which works with the Ministry of Finance to ensure more effective use of public funds.
Better management of public finances is expected to lead to more efficient delivery of essential services such as education, healthcare, energy, transport, and law enforcement, benefiting people across Laos.