Enhancing Public Financial Management in the Lao PDR for More Effective Public Services

The World Bank today brought further support to the Lao PDR's efforts to better manage its public finances with the approval of a second Enhancing Public Financial Management through Information and Communication Technology and Skills Project.

The $17.5 million project, funded by a low-interest loan from the World Bank Group's International Development Association, will allow the Ministry of Finance to develop clearer budget planning, implementation, and reporting across the government as a whole, making 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

Following on from a first phase that began in 2019, the project supports an integrated financial management information system, and trains staff at spending units across all levels of government so they can prepare budgets and record activities within the state budget system.

The project is part of the World Bank's wider Public Financial Management program, which works with the Ministry of Finance to improve the use of public funds. Better public financial management means more effective and equitable delivery of public services, including education, healthcare, energy, transport, and law enforcement, to all Lao people.