Guatemala Receives World Bank Financing to Improve Public Expenditure Efficiency and Strengthen Transparency

Washington D.C., September 15, 2025 - The World Bank's Executive Board approved today the project Smart Public Finance: Data-Driven Public Expenditure Management for Greater Efficiency for Guatemala. The initiative aims to support the modernization of the public financial systems, strengthen transparency, improve public spending efficiency and decision-making, and contribute to better access and quality of services for Guatemalan citizens.

This US$50 million investment project for Guatemala's financial modernization is structured around three key areas. First, it seeks to strengthen how the public budget is planned and implemented, ensuring more efficient use of resources to deliver better services in areas such as education, health, social protection, and basic infrastructure. Second, it aims to modernize the technological systems that manage public finances, ensuring they are protected against cyberattacks and that they operate in an integrated and sustainable manner. Third, it enhances coordination among institutions and promotes the use of data in decision-making, fostering learning and knowledge exchange for more responsive, efficient, and citizen-oriented governance.

"We are updating our financial systems to optimize budget management, which will allow us to deliver higher-quality public services in a timely manner. This investment is aimed at directly benefiting end users, especially individuals and families in vulnerable situations," said Jonathan Menkos, Minister of Public Finance. "Through secure and integrated platforms, decisions will be based on reliable information, and transparency in accountability will be strengthened, contributing to improvements in education, health, social protection, security, and infrastructure nationwide," he added.

"We are confident that this project will enable the Government to have modern systems to plan, execute, and monitor public expenditure more efficiently and transparently," said Pierre Graftieaux, World Bank Country Representative in Guatemala. By strengthening accountability and citizen trust in public management, Guatemala moves toward stronger institutions that are more responsive to the needs of its population.

The project also supports Guatemala's national development plan, the General Government Policy 2024-2028, under the pillar "Towards a Legitimate and Effective Public Service," which emphasizes transparent, efficient, and accountable public administration through strengthened planning and budgeting processes.

This initiative in Guatemala is part of a broader regional instrument for Central America under the Multiphase Programmatic Approach (MPA), with total financing of US$140 million that will benefit other countries in the region. The program is built on four pillars aimed at ensuring more efficient and transparent use of public resources. The first phase will be implemented in Guatemala to strengthen how public expenditure is planned and executed for the benefit of the population.

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