The World Bank has approved the second phase of the Enhancing Public Financial Management through Information and Communication Technology and Skills Project to support the Lao People’s Democratic Republic (PDR) in strengthening the management of its public finances. The $17.5 million initiative, financed through a low-interest loan from the International Development Association (IDA), aims to improve budget planning, implementation, and reporting across government agencies. By promoting greater transparency and accountability, the project seeks to ensure that public spending delivers better value for taxpayers and supports efficient decision-making.
According to Khwima Nthara, World Bank Country Manager for the Lao PDR, the initiative ensures that all government entities operate within a unified financial system. This will enhance oversight of public funds and contribute to improved governance and trust in state institutions.
Building on the success of the first phase launched in 2019, the project will further expand the integrated financial management information system (IFMIS) and provide training for staff at all levels of government. This will enable officials to better manage budgets and record expenditures within the national financial system.
The project forms a key part of the World Bank’s broader Public Financial Management program in Lao PDR, which collaborates with the Ministry of Finance to promote effective use of public resources. Ultimately, stronger financial management is expected to enhance the quality and equity of essential public services such as education, healthcare, energy, transport, and law enforcement for citizens across the country.
