World Bank Approves $20M Grant to Strengthen Syria’s Public Financial Management

After 14 years of conflict and economic instability, Syria’s public financial management systems remain under significant strain.

The World Bank Board of Executive Directors has approved a $20 million grant for Syria through the International Development Association (IDA) to strengthen the country’s public financial management systems and improve transparency and accountability in the use of public funds.

The funding will support the Syria Public Financial Management Capacity Strengthening Project, which aims to enhance government budgeting, procurement, and financial reporting systems while laying the groundwork for digital modernization of fiscal management.

Supporting Fiscal Reform After Years of Conflict

After 14 years of conflict and economic instability, Syria’s public financial management systems remain under significant strain. Government institutions responsible for budgeting and financial oversight have faced severe challenges, limiting the country’s ability to meet the needs of its population.

Fiscal capacity has also declined sharply. According to the World Bank:

• Government revenue collection has fallen from nearly 20% of GDP before the conflict to less than 5% today

• Oil revenues and tax collection have significantly decreased

• Customs duties remain limited despite Syria’s heavy reliance on imports since 2011

The new project is designed to help rebuild financial management systems and strengthen the efficient use of public resources.

Strengthening Transparency and Governance

World Bank Middle East Division Director Jean-Christophe Carret said strong financial governance will be essential for rebuilding public trust and mobilizing investment for Syria’s reconstruction.

“A disciplined and transparent management of public funds is critical for the Syrian state to gain the trust of its citizens and that of the international community,” Carret said.

He added that the project will focus on establishing foundational financial management systems first, before gradually introducing more advanced reforms.

Three Key Components of the Project

The project includes three main components aimed at improving the country’s financial governance systems.

1. Public Financial Management Reform Oversight

This component will strengthen institutional coordination and oversight of financial reforms across government agencies.

2. Capacity Development for Core Financial Functions

Training and professional development programs will improve the skills of government staff responsible for key financial tasks, including:

• Budget preparation and execution

• Procurement management

• Financial reporting

The goal is to professionalize public financial management and procurement practices within government institutions.

3. Establishment of a Financial Management Information System

The project will support the development of the Syria Integrated Financial Management Information System (SIFMIS).

This system will help:

• Improve fiscal transparency

• Produce accurate and timely financial data

• Digitize budgeting and procurement processes

Improving Public Service Delivery

By strengthening core financial management functions, the project aims to improve the efficiency of government spending in sectors such as:

• Health care

• Education

• Infrastructure

Reforms in areas like payroll management, procurement systems, and budgeting processes are expected to support better public services for citizens.

Coordination of International Assistance

The project will also establish new coordination mechanisms to manage international development assistance more effectively.

This includes creating the Syria External Assistance Fiduciary Section (SEAFS) within the Ministry of Finance. The unit will oversee financial accountability and coordination of projects funded by international partners.

Supporting Economic Recovery

Syria’s Minister of Finance Yisr Barnieh said the project will support the country’s ongoing economic stabilization efforts.

“After several years of economic contraction, Syria is expected to record positive growth in 2025 and 2026,” Barnieh said.

He added that strengthening public financial management will help support economic recovery and improve service delivery in a transparent manner.

Part of Broader World Bank Engagement

The project represents the second major initiative in the World Bank’s renewed engagement with Syria, developed in close cooperation with the Syrian government.

The World Bank and Syrian authorities are also discussing a broader strategy for cooperation aligned with the country’s Statement of National Recovery Priorities for International Cooperation.

This emerging strategy focuses on three key areas:

• Stabilizing the economy and strengthening core government systems

• Restoring essential services and social stability

• Supporting private sector–led economic growth

Public financial management reforms are considered a cross-cutting priority across all three pillars of the recovery plan.