WASHINGTON, May 21, 2014 – (WAFA) – The World Bank Board of Directors approved a $40 million grant to support the Palestinian Authority’s (PA) strategic reform priorities, Tuesday said a press release issued by the World Bank.
“A sustainable fiscal position and strong public financial management systems are key elements for building the institutions of a future Palestinian state,” said the World Bank in a press release.
“The World Bank remains committed to support the Palestinian Authority’s efforts to improve public finances, and to strengthen the business environment,” said Steen Lau Jorgensen, World Bank Country Director for West Bank and Gaza. “Implementing fiscal and economic reforms and maximizing the efficient use of resources help the government be more responsive to the needs of the people and increases confidence in the institutions – resulting in a vibrant society with social equity.”
The Development Policy Grant (DPG) which aims at improving the PA’s fiscal position, building robust financial management systems and improving access to finances for Palestinian enterprises will contribute to building the institutions of a future Palestinian state. With the current stalemate in the peace process and the decline of economic growth and donor aid, the grant will help ease some of the PA’s fiscal stress.
“Policy-linked budget support offers effective means of supporting reform programs,” said Orhan Niksic, World Bank Senior Economist. “The operation builds upon the reform progress supported by previous Development Policy Grants. The fiscal situation remains difficult but the PA has made significant progress in further reducing its budget deficit and improving revenue performance.”
This Grant, the sixth is a series, totaling $240 million in budget support, is supplemented by approximately an additional $200 million in donor support every year to advance the Palestinian Authority’s reform agenda.
The PA continues to focus efforts on providing efficient and transparent public services, enhancing capacity of local governments, security and justice systems, and strengthening citizen participation in decision making. The World Bank will continue to collaborate with other donors, especially through the multi-donor trust fund that is administered by the Bank on key issues on key issues that are critical for economic and social development.