The World Bank has announced its approval of a $13 million initiative aimed at enhancing public financial management in the Federated States of Micronesia (FSM). The FSM Strengthening Public Financial Management II project seeks to improve how the country allocates and tracks its resources, with the goal of improving service delivery and increasing transparency in public finances.
The project will focus on expanding FSM's fiscal management information systems. This expansion is expected to enable government agencies to allocate, spend, and track resources more efficiently. Additionally, the initiative will work on improving procurement processes and establishing an internal audit function to strengthen controls and reduce inefficiencies.
“This support will contribute to FSM’s broader efforts to improve governance and deliver services to its citizens more effectively,” said Rose Nakanaga, Secretary of Finance for FSM. “By reinforcing financial accountability, this work will help create a stronger, more resilient future for all Micronesians.”
A key aspect of the project is enhancing public access to financial information and increasing citizen engagement with public finances. By making government financial records more accessible, the initiative aims to build trust in public institutions and ensure that government programs align with community needs. Streamlining procurement processes is also intended to open up opportunities for local businesses, potentially boosting economic growth and job creation.
“For the people of FSM, this project is about more than financial management. It’s about ensuring that spending better serves people throughout the country,” said Omar Lyasse, World Bank Resident Representative for FSM. “Stronger public financial systems mean that resources for the country are allocated and spent efficiently, transparently, and accountably, which contributes to the improved delivery of essential services such as healthcare, education and infrastructure.”
To sustain these improvements over time, the project includes training local finance staff in areas such as financial reporting, accounting, budgeting, internal auditing, and procurement.