World Bank approves new project to strengthen fiscal sustainability and expenditure efficiency in Panama

Additionally, the private sector will benefit through improvement in the efficiency of customs administration, reduced transaction costs, and more robust client orientation.

The World Bank's Board of Executive Directors approved today a new project that will help strengthen fiscal sustainability and expenditure efficiency in Panama by enhancing its information systems for better decision-making. The US$40 million investment project will help streamline public services, making them more inclusive and responsive to people. 

The five-year project, entitled Consolidation of the Panama Public Financial Management Information System, consists of four components: 1. consolidating core public financial management functions; 2. strengthening administrative and resource management functions for public asset management, payroll management, public investment management, and customs administration; 3. reinforcing cybersecurity and other IT capabilities; and 4. developing change management, capacity-building, and project management capacities.  

This type of project contributes to reducing transaction costs in public procedures and generally helps make government services more accessible, efficient and transparent for the benefit of people.

“This support represents a significant step towards strengthening and modernizing public financial management processes and practices to promote better economic development in Panama,” said Michel Kerf, World Bank Country Director for Central America and the Dominican Republic. 

“The project will enable the reengineering of processes, supported by modern technological management tools that adopt international standards, promote interoperability and access to information systems, strengthen the coverage, functionality, and optimization of operations in government institutions, as well as the implementation of cybersecurity policies,” said Héctor E. Alexander H., Minister of Economy and Finance.

The financing will directly support the operations of the Ministry of Economy and Finance, the Office of the Comptroller General of the Republic, the National Customs Authority, and other key government institutions, which will benefit from more efficient systems and processes to manage public finances with timely and quality information. 

Additionally, the private sector will benefit through improvement in the efficiency of customs administration, reduced transaction costs, and more robust client orientation. These improvements are expected to strengthen the environment for investment, contributing to Panama's economic development.