Manila, Jun 20 (IANS): The Asian Development Bank (ADB) on Thursday said it has approved a policy-based loan of 40 million US dollars to help Bhutan further strengthen its public financial management and green growth.

The concessional loan aims to support policy reforms in expanding domestic resource mobilisation, promoting private sector development, and introducing climate change adaptation and mitigation measures, Xinhua news agency reported.

Under the program, domestic resource mobilisation is expected to be strengthened by improving customs and property tax administration, implementing a medium-term revenue strategy, and enhancing the governance and management of state-owned enterprises.

"This will significantly reduce the gap between current expenditures and tax revenues. The rollout of an integrated financial management information system will improve public financial management," the ADB said.

It added the program will help promote private sector development and streamline, modernise and digitise investment, business processes and trade services to enhance the ease of doing business in the country.