World Bank approves 150 million dollars loan for Punjab to improve state’s finances, service delivery

To help Punjab better manage its financial Resources and improve access to public Services, the on Tuesday approved a loan of 150 million US dollars to the Indian state.

The decision was approved by the World Banks Board of Executive Directors. As per the official statement, the international financial institution would support Punjabs efforts to strengthen the institutional capabilities of various government departments, manage fiscal risks, and make informed policy choices to support sustainable Growth.

The new projects will support the State’s development goals by strengthening the planning, BUDGETING and monitoring functions, and leveraging digital technology, besides increasing accountability in the public procurement systems by supporting the state-wide implementation of new legal and policy reforms.

The project will pilot two initiatives it will introduce a performance-based grants system to incentivize municipal corporations to improve service delivery; and it will demonstrate the delivery of 24×7 water supply in select areas in the cities of Amritsar and Ludhiana. It will improve water delivery systems and reduce water leakages. The success of these pilots is expected to offer a significant potential for the state-wide scale-up of improved service delivery.