The World Bank’s Executive Board has approved the project Smart Public Finance: Data-Driven Public Expenditure Management for Greater Efficiency to support Guatemala’s financial modernization. The initiative is designed to strengthen transparency, improve the efficiency of public spending, modernize financial systems, and ultimately enhance access and quality of services for Guatemalan citizens. The project represents a US$50 million investment to upgrade how the country manages its public finances.
The program is structured around three core areas. It will strengthen the planning and execution of the public budget to ensure resources are used more effectively in essential sectors such as health, education, social protection, and infrastructure. It also aims to modernize and secure the technological systems managing public finances, ensuring integration, sustainability, and protection against cyberattacks. In addition, the project will improve institutional coordination and promote data-driven decision-making, enabling more responsive and citizen-focused governance.
Guatemala’s Minister of Public Finance, Jonathan Menkos, emphasized that the project will directly benefit end users, especially vulnerable groups, by improving the timeliness and quality of services. He noted that reliable information systems will make decisions more effective while enhancing transparency and accountability in public management. The World Bank’s Country Representative in Guatemala, Pierre Graftieaux, added that the initiative will equip the government with modern tools to plan, execute, and monitor spending, thereby strengthening institutions and citizen trust.
The project aligns with Guatemala’s General Government Policy 2024–2028, particularly the pillar “Towards a Legitimate and Effective Public Service,” which calls for more transparent, efficient, and accountable governance. Beyond Guatemala, this effort is part of a broader Central American regional program under the World Bank’s Multiphase Programmatic Approach, totaling US$140 million. The first phase, starting in Guatemala, will serve as a model for improving public expenditure management across the region.
