WASHINGTON: The World Bank’s Board of Executive Directors today approved a loan of $150 million to the northern Indian state of Punjab to help the state better manage its financial resources and improve access to public services.
The Punjab: Building Fiscal and Institutional Resilience Program will support the state’s efforts to strengthen the institutional capabilities of various government departments, manage fiscal risks and make informed policy choices to support sustainable growth, the World Bank said in a press statement adding that Punjab’s growth has been below potential. A combination of fiscal challenges and institutional capacity constraints means that scarce resources are spread thin across development priorities.
The new project will support the state’s development goals by strengthening the planning, budgeting and monitoring functions, and leveraging digital technology. The project will also aim to increase accountability in the public procurement systems by supporting state-wide implementation of new legal and policy reforms.
“The World Bank is pleased to be a partner of the state of Punjab in the state’s effort to deliver timely, cost-effective and good-quality public services, which is critical for inclusive development,” said Auguste Tano Kouame, the World Bank’s Country Director in India.
“This new project will support the implementation of the state’s new data policy, which aims to bring together various social protection initiatives and reduce potential leakages while delivering essential services,” he added.