The World Bank has approved a $50 million project aimed at modernizing Guatemala’s public financial systems. The initiative, titled "Smart Public Finance: Data-Driven Public Expenditure Management for Greater Efficiency," is designed to improve how the country plans and implements its budget, with the goal of delivering better services in sectors such as education, health, social protection, and infrastructure.
The project focuses on three main areas. It will strengthen the planning and implementation of the public budget to make resource use more efficient. It also seeks to update technological systems that manage public finances by improving cybersecurity and integrating operations for sustainability. Additionally, it aims to enhance coordination among institutions and encourage data-driven decision-making for more effective governance.
Jonathan Menkos, Minister of Public Finance, said: “We are updating our financial systems to optimize budget management, which will allow us to deliver higher-quality public services in a timely manner. This investment is aimed at directly benefiting end users, especially individuals and families in vulnerable situations.” He added: “Through secure and integrated platforms, decisions will be based on reliable information, and transparency in accountability will be strengthened, contributing to improvements in education, health, social protection, security, and infrastructure nationwide.”
Pierre Graftieaux, World Bank Country Representative in Guatemala stated: “We are confident that this project will enable the Government to have modern systems to plan, execute, and monitor public expenditure more efficiently and transparently.” He continued: “By strengthening accountability and citizen trust in public management, Guatemala moves toward stronger institutions that are more responsive to the needs of its population.”
The project supports Guatemala’s General Government Policy 2024–2028 under the pillar “Towards a Legitimate and Effective Public Service,” which highlights transparent and accountable administration through improved planning and budgeting processes.
This initiative is part of a larger regional program for Central America called the Multiphase Programmatic Approach (MPA), totaling $140 million. Other countries in the region are expected to benefit from future phases of this program.