The World Bank’s Board of Executive Directors approved a US$20 million grant from the International Development Association (IDA) to support Syria in strengthening the efficiency, transparency, and accountability of its public financial management systems. The funding will support the Syria Public Financial Management Capacity Strengthening Project, which aims to improve core financial management and procurement functions, strengthen budget controls, and establish institutional arrangements that enhance coordination and oversight of public financial reforms. The initiative will also lay the groundwork for the digitalization of financial management systems.
Syria’s public financial management systems continue to face major challenges after fourteen years of conflict and economic instability. Government revenues have declined significantly, falling from nearly 20 percent of GDP before the conflict to less than 5 percent today due to reduced oil production and weaker tax collection. Customs duties also remain limited despite the country’s heavy reliance on imported commodities. These constraints have severely reduced fiscal space, limiting the government’s capacity to address the needs of the population and support economic recovery.
The project aims to address these challenges by strengthening institutional capacity and improving the management of public resources. It will support oversight of financial management reforms, build technical capacity in essential financial management and procurement functions, and establish a Syria Integrated Financial Management Information System. The project will focus on improving key processes such as budget preparation and execution, procurement management, and financial reporting, while simplifying and digitalizing related administrative systems. Strengthening payroll systems, procurement procedures, and budget management is expected to contribute to better delivery of essential services such as health, education, and infrastructure.
Another key component of the initiative is the professional development of government staff working in public financial management and procurement. The project will institutionalize training and skills development to ensure long-term sustainability of reforms. It will also establish coordination mechanisms within the Ministry of Finance, including a dedicated unit responsible for overseeing external assistance and ensuring proper financial oversight of both national and international projects.
The project represents the second initiative under the World Bank’s renewed engagement with Syria and reflects growing cooperation between the World Bank and the Syrian government. Discussions are ongoing to expand this partnership as part of the country’s national recovery strategy. The World Bank’s broader approach to supporting Syria focuses on stabilizing the economy and strengthening core government systems, restoring essential services and social stability, and enabling economic growth driven by private sector development. Strengthening public financial management has been identified as a key priority in achieving these recovery goals and improving governance and service delivery in the country.
