Widespread assistance from development partners (DPs) in times of crisis could lead to fiscal expansion and unsustainable expenditures that require subsequent downward adjustments. The inflow of DP assistance to support the Republic of Marshall Islands’ (RMI) COVID-19 response plan has masked its structural fiscal deficit and led to expenditures that were unsustainable and needed to be adjusted afterwards. With the pandemic winding down, it has become most important for the country to heed the EconMAP’s recommendation for it take steps to address this fiscal deficit. The program benefitted greatly from the advisory support provided to the Ministry of Finance (MOF) by the EconMAP team that analyzes economic and financial developments and provide advice on a regular basis. It also benefited from cooperation with the International Monetary Fund and the Pacific Financial Technical Assistance Centre team in Fiji and from advice provided by the ADB-funded regional technical assistance in the Pacific. Such support, along with the Reform Coordination Unit’s supplementation of capacity at the MOF, facilitated the successful implementation of this program.
Health Expenditure and Livelihoods Support Program