$5m ADB grant to support fiscal sustainability in Solomon Islands
28 November, 2018, 6:35 pm
HONIARA, SOLOMON ISLANDS (27 November 2018) — The Asian Development Bank (ADB) has approved a $5 million policy-based grant to support the efforts of the Government of Solomon Islands to implement policy and institutional reforms to progressively improve fiscal sustainability, business climate, public financial management, and service delivery.
“The Solomon Islands Improved Fiscal Sustainability Reform Program builds on previous policy-based operations of ADB and its development partners,” said ADB’s Pacific Liaison and Coordination Office Regional Director Ms. Emma Fan. “The program will support better public sector management, leading to higher quality service delivery for the people of Solomon Islands.”
The governments of Australia and New Zealand, the European Union, and the World Bank will provide $16.4 million in cofinancing.
There are three reform areas supported by the program. Policy actions under the first reform area will help improve the quality of budget systems and support legislation to establish institutions to fight corruption.
Under the second reform area, policy actions will help return the government’s finances to a sustainable track with measures to increase revenue, reduce expenditure, and pay arrears.
Policy actions under the third reform area will support shifting to a more broad-based economy that is competitive and encourages the participation of women in the economy, and a tax system that supports economic growth and is business friendly.
The program is aligned to ADB’s Strategy 2030, particularly the operational priorities related to strengthening governance and institutional capacity, accelerating progress in gender equality, and supporting fragile and conflict affected status and small island developing states.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.