The Asian Development Bank (ADB) on 1 July said it is providing $50 million to support fiscal and public management reforms in the Kyrgyz Republic to enable more public funding for the nation’s low carbon transition and climate adaptation needs, and integrate gender inclusiveness into budget processes.
The funding for subprogram 1 of the Sustainable Fiscal Management and Governance Improvement Program includes a $43 million policy-based concessional loan and a $7 million Asian Development Fund grant.
The Kyrgyz economy is vulnerable to macroeconomic shocks due to a lack of economic diversification, weaknesses in governance, and limited fiscal space which also restricts the government’s capacity to respond to emerging challenges. As one of the most vulnerable countries to the impacts of climate change, the government is keen to strengthen public financial management to ensure funding to key sectors. Therefore, the government is prioritizing structural reforms to improve fiscal sustainability, domestic resource mobilization, public sector governance, and efficiency to foster economic growth.
ADB’s Sustainable Fiscal Management and Governance Improvement Program, consisting of two subprograms, aims to strengthen public financial management, improve corporate governance and procurement of state-owned enterprises, enhance tax policy and administration, and increase transparency and accountability in public administration. The program is expected to support resilient and inclusive economic growth through a series of complex and challenging institutional reforms.
“The approval of this program signifies ADB’s commitment to assisting the Kyrgyz Republic in overcoming its development constraints and strengthening governance through anti-corruption policies and initiatives to achieve sustainable, resilient, and inclusive economic growth,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “The program aims to improve the efficiency of public institutions and public finance management to ensure sound governance and greater transparency.”
