The EU has increased its contribution to this PFM MDTF providing an additional € 3 million (NPRs 35 crores).With a total of € 7.5 million (NPRs 88 crores) the EU is now the largest contributor to the MDTF, which has an overall funding of € 19 million (NPRs 232 crores).

"This will allow reinforcing cooperation in the fields of procurement and capacity building of the Office of the Auditor General (OAG), 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'' added Takuaya Kamata, Country Manager of the World Bank.

Public Financial Management (PFM) reform is crucial for sustainable development and inclusive growth in Nepal and the Government of Nepal is committed to advance its implementation.

Since 2010 Development Partners support this process in particular through the PFM - Multi-Donor Trust Fund (MDTF) managed by the World Bank, which pools expertise and resources from Australia, the European Union, Norway, Switzerland, UK-DFID and USAid.

 “The PFM MDTF works together with the Government towards accomplishing four strategic objectives with regard to: I. Increase capacity of the public financial system in the priority areas of policy based budgeting, budget execution, accounting, recording and reporting, external scrutiny and audit; II. Promote accountability by supporting civil society actors and public institutions; III. Support policy and technical studies and other knowledge-management activities in the public financial management sector and IV. Support the overall operations of the Trust Fund Program to fulfill its supporting mission,” said the press release issued by European Union Delegation to Nepal.