Improving public financial management for the green transition

About this project

Serbia is an upper middle-income country with a per capita income of US$ 9,215 in 2021. The country's economy and household incomes expanded following a significant fiscal adjustment in 2014-15, and the fiscal environment improved significantly up until 2019. In 2020, the economy contracted by 1 percent due to COVID-19, followed by a strong rebound in 2021 with growth accelerating to 7.4 percent. The proposed operation is aligned with and supports the focus areas and objectives of the Country Partnership Framework (CPF) 2022–2026.11 It provides support across High-Level Outcomes (HLOs) 1 and 2, specifically objectives 1.1 (structural reforms for greener growth), 1.2 (green investments and just transition), and 2.1 (strengthened public finance management at central and local levels). Improved performance on key PFM indicators has a direct impact on the optimal use of budget funds. In addition, enhanced fiscal transparency will increase trust in institutions. The operation's objective of improving the quality of key areas of PFM at financial and other agencies to support green growth will directly contribute to the wider objectives of the CPF. The PforR instrument including an IPF component has been identified as best suited to incentivize change combined with providing hand-holding support for achieving the agreed results and it logically complements the Green Transition DPO series (P177410). The DPO series targets legal and regulatory changes to set the green transition in m…

Published by

World Bank · Multilateral

Countries

Serbia

Sectors

Budget planningOther general public servicesEnvironmental policy and administrative managementMulti-hazard response preparednessPublic Procurement

Funded by

International Bank for Reconstruction and Development

Implemented by

Ministry of Finance

Accountable

Republic of Serbia

Passes funds through

International Bank for Reconstruction and Development

Published by World Bank to the International Aid Transparency Initiative (IATI), last updated 2 Oct 2026 and imported automatically. IATI identifier: 44000-P175655.

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