World Bank Approves $13M to Strengthen Public Financial Management in Micronesia

This initiative will modernize FSM’s fiscal management information systems, enabling government agencies to allocate, track, and utilize public resources more effectively.

The World Bank has approved a $13 million initiative to support the Federated States of Micronesia (FSM) in enhancing its public financial management systems and practices. The FSM Strengthening Public Financial Management II project aims to improve the efficiency, accountability, and transparency of government financial operations, ultimately leading to better service delivery and economic growth.

This initiative will modernize FSM’s fiscal management information systems, enabling government agencies to allocate, track, and utilize public resources more effectively. It will also introduce measures to strengthen procurement processes and establish an internal audit function to ensure greater financial control and efficiency.

Rose Nakanaga, FSM’s Secretary of Finance, emphasized the significance of this support, stating, "This project contributes to FSM’s broader governance improvement efforts, helping us enhance financial accountability and build a stronger future for our citizens."

A key component of the initiative is increasing public access to financial data, fostering greater citizen engagement in governance. Transparent financial reporting will build trust in public institutions, ensuring that government spending aligns with national priorities and community needs. Additionally, streamlined procurement processes will create more opportunities for local businesses, driving economic growth and job creation.

“For the people of FSM, this project is about more than financial management—it’s about making sure government resources are used effectively to improve lives,” said Omar Lyasse, World Bank Resident Representative for FSM. “Strengthening financial systems ensures that essential services such as healthcare, education, and infrastructure development are delivered efficiently and equitably.”

To sustain these improvements, the project will provide training for local finance personnel in financial reporting, accounting, budgeting, internal auditing, and procurement. By equipping FSM’s workforce with essential financial management skills, the initiative seeks to ensure lasting benefits for future generations.

This initiative marks a significant step towards enhanced governance and economic stability in FSM, reinforcing the nation’s commitment to transparent and efficient financial management for the betterment of its citizens.