Kathmandu, December 7

The EU has increased its contribution to Public Financial Management- Multi-Donor Trust Fund providing an additional 3 million euros (Rs 35 crores).

A press release issued by Delegation of the European Union to Nepal today said with a total of 7.5 million euros (Rs 88 crores), the EU is now the largest contributor to the MDTF, which has an overall funding of 19 million euros (Rs 232 crores).

“This will allow reinforcing cooperation in the fields of procurement and capacity building of the Office of the Auditor General, whose mandate has expanded to the local level with the new constitution,” said EU Ambassador and Head of the EU Delegation to Nepal Rensje Teerink.

The new EU contribution will support, through the MDTF, the second phase of the National PFM Strategy of the Government of Nepal.

“Some of the key results achieved during the first phase include the automation of many budget preparation and implementation systems which allow better tracking of public expenditure, the strengthening of the OAG and a successful program for accountability as well as a better coordination among development partners around PFM reform support,’’ said Takuaya Kamata, country manager of World Bank.

The PFM MDTF works together with the government towards increasing capacity of the public financial system in the priority areas;promoting accountability by supporting civil society actors and public institutions; and supporting policy and technical studies.