The World Bank Board has approved an International Development Association (IDA) grant of 19 million dollars equivalent to improve domestic revenue mobilization systems and strengthen financial control and accountability in public finances.
A statement from the World Bank said the grant financing will be executed under the Public Financial Management Reforms for Institutional Strengthening (PRMRIS) Project.
The PRMRIS project will address financial management and governance issues, as well as deepen and institutionalize PFM reforms achieved to date to ensure sustainability through a human capital (HC) lens.
It will also address the importance of broadening the revenue base in an equitable manner to revert the worsening HC indices through the provision of public services in education and health.
“Transparency and accountability in the public sector are critical for the Liberian Government to assist in mobilizing additional revenue to deliver needy services, particularly in education and health. Boost in the country’s human capital development will put Liberia on the path to prosperity and sustainable development,” said Larisa Leschenko, World Bank Liberia Country Manager.
The project will lay the foundation for rebuilding a social contract with citizens on their ability and willingness to demand accountability from the government and the political elite.
According to the statement, this new social contract and creation of greater fiscal space require more efficient spending through strengthening the ability of PFM systems to provide relevant information on expenditure and establishing reasonable controls and requisite oversight on overall government finances.
The strengthened systems will enable the Liberian government ensure resources are being effectively used for enhanced HC development and improved service delivery.
Aligned with Liberia’s medium-term development strategy, the Pro-Poor Agenda for Prosperity and Development (PPAPD), the project places emphasis on legal and regulatory framework, budget
credibility, revenue mobilization, robust and linked IT systems, comprehensive and transparent financial reporting and external scrutiny.