Project Name
Strengthening Fiscal Management and Sustainability Program (Subprogram 1)
Project Number
55003-001
Country / Economy
  • Maldives
Project Status
Active
Project Type / Modality of Assistance
  • Grant
  • Technical Assistance
Source of Funding / Amount
Grant 0898-MLD: Strengthening Fiscal Management and Sustainability Program (Subprogram 1)
Source Amount
Asian Development Fund US$ 18.70 million
TA 10140-MLD: Supporting Strengthening Fiscal Management and Sustainability Program
Source Amount
Technical Assistance Special Fund US$ 1.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Public sector management / Public expenditure and fiscal management

Gender
Effective gender mainstreaming
Description
A series of exogenous shocks severely affected public finance, poverty, and macroeconomy. Public expenditure increased drastically to support social protection scheme, but revenue mobilization decreased in line with the decline in tourist arrivals and a general economic downturn, leading to deterioration of fiscal and debt situation. The proposed program supports the government's structural reforms to strengthen fiscal consolidation focusing on domestic resource mobilization, and expenditure and debt management. It is aligned to the government's medium-term fiscal and debt management strategies, and the Asian Development Bank's (ADB) country partnership strategy for Maldives 2020-2024. It will contribute to the following operational priorities of Strategy 2030: (i) addressing remaining poverty and reducing inequality; (ii) gender equality and women's empowerment; (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; and (iv) strengthening governance and institutional capacity.
Project Rationale and Linkage to Country/Regional Strategy
The program adopts a programmatic approach to sequence reforms considering the time and flexibility needed to implement meaningful multi-year, multi-component reform measures amidst heightened uncertainties due to elevated energy and food prices, proactive monetary policy adjustment, prospective global economic slowdown and the government's absorptive capacity. Subprogram 1 prioritizes legal and regulatory changes as well as institutional frameworks to set the stage for meaningful fiscal consolidation. Subprogram 2 priorities follow-on reforms to not only implement the initiatives undertaken in subprogram 1, but also deeper legal, regulatory, policy and institutional reforms to put the economy on a pathway to fiscal sustainability over the medium term.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Male

Safeguard Categories

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

Consulting Services
No consulting services involved in program preparation.
Procurement
No procurement involved in program preparation.

Contact

Responsible ADB Officer
Seyama, So
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Ministry of Finance (formerly Ministry of Finance and Treasury)

Timetable

Concept Clearance
13 Jun 2023
Fact Finding
21 May 2023 to 23 Jun 2023
MRM
19 Jul 2023
Approval
31 Aug 2023
Last Review Mission
-
Last PDS Update
31 Aug 2023

Funding

Grant 0898-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Aug 2023 04 Sep 2023 21 Sep 2023 30 Aug 2024 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 18.70
ADB 18.70
Counterpart 0.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 17 Jun 2024 18.70 0.00 100%

TA 10140-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Aug 2023 21 Sep 2023 21 Sep 2023 31 Aug 2026 - -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00
Cumulative Disbursements
Date Amount
17 Jun 2024 0.00
 
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Source URL: https://www.adb.org/projects/55003-001/main