The World Bank will extend a loan of $36 million to improve the efficiency of public expenditure management and tax administration in Himachal Pradesh.

The programme, the finance ministry said, is expected to contribute to enhancing efficiency of key departments, improving budget credibility, strengthening systems and procedures to improve fiscal discipline.

An agreement for the World Bank's loan was signed on 31 May.

The programme, whose duration is five years, is also expected to improve revenue administration to increase fiscal space and targeted organisational reforms including human resource.

"The programme focuses on the priority areas identified by the GoHP, which were articulated in various stakeholder workshops during Program preparation," the ministry said.

The programme size is $45 million, of which $36 million will be financed by the Bank and the remaining amount will be funded out of state budget.