The World Bank approved a US$50M project for Guatemala to modernize public finance, improve efficiency, transparency, and tech systems, and enhance services in health, education, and infrastructure, benefiting vulnerable citizens.
The World Bank’s Executive Board has approved a US$50 million investment project titled “Smart Public Finance: Data-Driven Public Expenditure Management for Greater Efficiency” for Guatemala, with the goal of modernizing the country’s public financial management systems. The initiative is designed to improve efficiency, transparency, and the quality of public service delivery, especially for education, health, social protection, and infrastructure sectors. This project is structured around three primary areas: enhancing budget planning and implementation processes to ensure optimal resource use; upgrading the technological systems that support public finance operations, which includes safeguarding against cyber threats and integration for sustainability; and strengthening institutional coordination and the use of reliable data in decision-making, fostering transparency, learning, and citizen engagement.
Guatemala’s Minister of Public Finance, Jonathan Menkos, emphasized that these upgrades are expected to directly benefit vulnerable populations by enabling timely, high-quality service delivery via secure, integrated platforms and improved accountability. The project also aligns with the government’s 2024–2028 General Government Policy, specifically under the policy pillar “Towards a Legitimate and Effective Public Service,” which prioritizes transparent and efficient administration, as well as robust planning and budgeting.
Pierre Graftieaux, World Bank Country Representative in Guatemala, highlighted that the reform will help the government better plan, execute, and monitor expenditure, reinforcing both institutional accountability and public trust. The project is part of a broader US$140 million regional program for Central America under the Multiphase Programmatic Approach (MPA), which is built on four pillars for ensuring more efficient and transparent use of public resources. The first phase will focus on strengthening public expenditure processes in Guatemala, with plans to extend similar support to other countries in the region, ultimately improving responsiveness, efficiency, and governance across Central America.
