Maldives : Strengthening Fiscal Management and Sustainability Program (Subprogram 1)

Sovereign Project | 55003-001

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.

Project Details

  • Project Officer
    Sapkota, Chandan
    Sectors Group
    Request for information
  • Country/Economy
    Maldives
  • Sector
    • Public sector management
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)
Asian Development Fund US$ 18.70 million
TA 10140-MLD: Supporting Strengthening Fiscal Management and Sustainability Program
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.
Responsible ADB Officer Sapkota, Chandan
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

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 Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 18.70 Cumulative Contract Awards
ADB 18.70 02 Feb 2024 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 02 Feb 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 Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 02 Feb 2024 0.00

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  • 01 Sep 2023 | News Release

    ADB Provides Support for Fiscal Reforms in Maldives

    ADB has approved an $18.7 million policy-based grant for Maldives to help the country strengthen its fiscal management and create a pathway to restore fiscal sustainability over the medium to long term.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.