ADB to provide $200 million for subprogram-2

Asian Development Bank will provide $200 million for subprogram-2 of the Punjab Resource Management Programme (PRMP) to improve fiscal and financial governance and public service delivery, leading to poverty reduction in Punjab.
According to ADB sources, the purpose and policy objectives of subprogram-2 are to assist Punjab through reforms in governance structures, systems, and procedures to provide "fiscal space" for sustainable development and improve monitoring mechanisms to ensure allocation and utilisation of funds is effective and transparent, adjust and strengthen institutional arrangements to increase the pro-poor impact of public expenditure and to improve service delivery and create a conducive environment for private sector development, growth, and income generation.
Subprogram-2 will enable Punjab government to realise the policy agenda outlined in the Punjab Economic Report. That agenda includes improving governance, strengthening fiscal and financial structures, developing the private sector, ensuring effective public service delivery, and reducing the economy's vulnerability to shocks.
Subprogram-2 builds on other ADB-financed governance-related programmes, such as the Decentralisation Support Programme and the Devolved Social Services Programme, that are promoting fiscal devolution, decentralised social service delivery, local accountability, and gender reform.
ADB sources mentioned that the Subprogram-2 will support reform measures under three components: (i) reforming provincial finances through fiscal restructuring and financial management; (ii) reforming processes and institutions for pro-poor service delivery; and (iii) creating opportunities for growth and income generation through private sector.
Sources mentioned that this project would yield positive impact over the Punjab economy and envisaged (i) strengthened provincial revenues; (ii) rationalised provincial expenditures; (iii) improved effectiveness, predictability, and accountability in financial management; (iv) better strategic programming of investments for poverty reduction; (v) restructured and strengthened government, administration, and human resource development; (vi) regulatory and administrative reforms for private sector development; and (vii) reduced direct public sector involvement in economic and/or commercial operations.