The World Bank has approved a second phase of support to improve public financial management in the Lao People's Democratic Republic (Lao PDR). The initiative, called the Enhancing Public Financial Management through Information and Communication Technology and Skills Project, will receive $17.5 million in funding from the International Development Association, which is part of the World Bank Group.
The project aims to help the Ministry of Finance in Laos strengthen budget planning, implementation, and reporting across government agencies. By doing so, it seeks to make public spending more transparent and accountable.
"Essentially, this means that all agencies or offices using the state budget will only spend money within the official system," said Khwima Nthara, World Bank Country Manager for the Lao PDR. "This helps the government ensure transparency and accountability, so that Lao taxpayers get improved value for money, and will also facilitate timely decision-making."
Building on an earlier phase that began in 2019, this project supports an integrated financial management information system. It also includes training for staff at various levels of government so they can prepare budgets and record activities within the state budget framework.
This work forms part of a broader program by the World Bank focused on improving how public funds are managed in Laos. Better management of these resources is expected to lead to more effective delivery of essential services such as education, healthcare, energy, transport, and law enforcement throughout the country.