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Financial Compliance Key to Marshall Islands Development

Strengthening Public Financial Management in the Marshall Islands

MAJURO, Marshall Islands - A new project aimed at strengthening public financial management and compliance in the Republic of the Marshall Islands has been launched by the World Bank and the country’s Ministry of Finance.

Improving Budget Efficiency and Transparency

The “Strengthening Budget Execution and Financial Reporting Systems” project, worth $9.5 million, aims to improve budgeting efficiency and transparency across government agencies, allowing for better delivery of essential public services such as healthcare and education.

Key Objectives:

  • Improve budget execution and financial reporting systems
  • Enhance transparency and accountability in government finances
  • Support the country’s development priorities through effective resource allocation

According to Marshall Islands Minister of Finance Brenson S. Wase, effective public financial management is crucial in supporting the country’s development priorities and ensuring healthy government budgets.

“The new Financial Management Information System will enable us to track our finances more effectively and make informed decisions about how to allocate our resources,” Wase said.

Modernizing Regulations and Procurement Reforms

The project also includes modernizing regulations to embrace new technologies and introducing procurement reforms for greater transparency, which is expected to benefit the country’s citizens in the long run.

Key Benefits:

  • Improved financial management systems
  • Increased transparency and accountability in government finances
  • Better allocation of resources for essential public services

World Bank Vice President for East Asia and the Pacific Victoria Kwakwa emphasized that the project focuses on developing human capital by providing Marshallese with skills in areas such as revenue management, planning and budgeting, accounting, reporting, and auditing.

“This will enable our government to make informed decisions about how to allocate resources effectively and ensure that public funds are used efficiently,” Kwakwa said.

World Bank’s Commitment to the Marshall Islands

The World Bank has quadrupled its funding for the Marshall Islands since 2017, with a total of $63 million allocated this year. The improved reporting efficiency on budgets and disbursements will help to ensure critical investments in essential services such as healthcare, education, infrastructure, and resilience are carefully managed and accounted for.

Funding:

  • A grant from the International Development Association, the World Bank’s fund for the world’s most in-need countries.