World Bank to loan $150 million to Punjab government for major reforms

AAP-led Punjab government collaborated with the World Bank, under the USD 215 million Building Fiscal and Institutional Resilience for growth (BFAIR) project.

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CM Bhagwant Mann hails Tax free budget of Punjab govt for FY 2022-23 presented by finance minister.
CM Bhagwant Mann hails Tax free budget of Punjab govt for FY 2022-23 presented by finance minister. (Twitter/CMOPUNJAB)

HIGHLIGHTS

  • Punjab government to receive loan from World Bank.
  • The loan is under the aegis of Building Fiscal and Institutional Resilience for growth (BFAIR) project.
  • AAP-led Punjab government is slated to contribute a sum of USD 65 mn.

Punjab finance minister Harpal Singh Cheema on Wednesday said that the state has collaborated with the World Bank, under the USD 215 million Building Fiscal and Institutional Resilience for growth (BFAIR) project. The state government is slated to contribute a sum of USD 65 million in accordance with the project, he said.

He said that, unlike other loans, this is a reform-based project targeted at bringing about reforms in the system and processes of the five administrative departments. Disclosing this in a statement, the minister said that the project will improve systems in finance, planning and governance reforms, including local government and women and child development. He further added that the project will significantly improve the delivery of the services at a local level.

“The project will be implemented over a period of five years to bring in process and policy-based institutional reforms to enhance resilience and fiscal sustainability”, said Cheema. He also informed that USD 150 million in assistance from the World Bank will be available in the form of a very low-cost loan wherein repayment will begin shortly during the course of the project.

“The Punjab Government's contribution of USD 65 million to this project will introduce an overarching framework by strengthening the institutional capabilities and accountability; supporting better public service delivery and other reform measures for good governance," said Cheema.

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