India: Assam Governance and Public Resource Management Sector Development Program (Subprogram II)

Sovereign Project | 36308-023

Summary

The design of Subprogram II is based on the lessons learned during Subprogram I, the current fiscal situation is Assam, areas of policy progress where the implementation of policies needs to be pursued, and focus on key implementation-oriented

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Project Name Assam Governance and Public Resource Management Sector Development Program (Subprogram II)
Project Number 36308-023
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2442-IND: Assam Governance and Public Resource Management Sector Development Program (Subprogram II)
Ordinary capital resources US$ 100.00 million
TA 7129-IND: Supporting the Assam Governance and Public Resource Management Sector Development Program (Subprogram II)
Japan Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Public sector management - Public expenditure and fiscal management
Gender Equity and Mainstreaming
Description The design of Subprogram II is based on the lessons learned during Subprogram I, the current fiscal situation is Assam, areas of policy progress where the implementation of policies needs to be pursued, and focus on key implementation-oriented
Project Rationale and Linkage to Country/Regional Strategy Despite reforms attained under Subprogram I, given the fiscal pressure that GOA is still facing, the rationale of Subprogram II is contained in the urgent need to concentrate for implementation in the areas of (i) substantial increase in own tax revenue through optimal utilization of revenue administration and computerization, (ii) rationalization of expenditures through outcome-based budgeting, O&M expenditure estimates, and additional closure of loss-generating PSEs; and (iii) enhancing management capacity of debts including contingent liabilities. Subprogram II reforms will allow greater fiscal space thus enabling GOA to allocate more fiscal resources to much needed social and economic infrastructure. This will, in turn, promote private sector investment thus leading to income generation and employment. Moreover, given that youth unemployment has historically been a main contributor to the social unrest in GOA, creating greater fiscal space will have a consequential impact on the resolution of the problem of social unrest.
Impact The impact of Subprogram II is to achieve improved financial flexibility of GOA through controlled deficits and better fiscal management. It is expected to contribute to economic growth through greater investments in social and economic infrastructure leading to employment opportunities and ultimately social peace and harmony.
Project Outcome
Description of Outcome The key end-of-program outcomes will include (i) increased tax buoyancy as a result of efficient revenue administration; (ii) expenditures prioritized to allow greater allocation for investments in, and maintenance of, assets; (iii) savings in debt servicing costs as a result of strengthened debt management capacities and consolidated policy procedures; and (iv) better mitigation of fiscal risk originating from selected loss-generating PSEs and further steps towards financial closure and initiation of legal closure process for PSEs notified for closure by getting the statutory audits completed and initating liquidation of assets.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Component 1- Revenue Administration: 1. VAT audit manual, 2. Simple filing requirements, 3. Upgraded TIMS with required functionalities, 4. Ad valorem duty structure, 5. Computerized property registration system 6. Computerized land records, 7. Computerized objective valuation, 8. Composite checkpost

Component 2-Expenditure Management: 1. Outcome-based budgeting document of departments, 2. Assessment report on outcome-based budgeting experiences, 3. Strategy document on sustainable O&M

expenditure, 4. O&M expenditure estimates of departments, 5. Fixed asset registers, 6. Agreement with fund manager for new pension scheme, 7. Employee contributions to the pension fund

Component 3- Debt Management: 1. DMU training policy, 2. Debt management policy and procedural

manual, 3. Guarantee redemption fund, 4. Reconciliation of central loans from administrative ministries of the Government of India

Component 4-Public Sector Enterprise Closure: 1. Financial closure of PSEs, 2. Established asset management cell, 3. Liquidation of assets of a selected PSE, 4. Training opportunities for employees of the PSEs notified for closure who are participating in VRS, 5. Statutory audit, 6. Labor rehabilitation plan

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Assam, India
Safeguard Categories
Environment C
Involuntary Resettlement
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Not applicable
Procurement Not Applicable
Responsible ADB Officer Hiranya Mukhopadhyay
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Finance Department, Government of AssamDr. Ashish Bhutaniashishbhutani@gmail.comAssam Secretariat, Dispur, Guwahati, 781 006
Timetable
Concept Clearance 07 Feb 2008
Fact Finding 11 Feb 2008 to 20 Feb 2008
MRM 22 Apr 2008
Approval 17 Sep 2008
Last Review Mission -
PDS Creation Date 18 Mar 2008
Last PDS Update 06 Apr 2010

Loan 2442-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Sep 2008 14 Oct 2008 17 Nov 2008 31 Mar 2012 - 06 Feb 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 17 Sep 2008 100.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Sep 2008 100.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - -

TA 7129-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Sep 2008 14 Oct 2008 14 Oct 2008 30 Jun 2011 30 Sep 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 150,000.00 0.00 0.00 0.00 750,000.00 17 Sep 2008 564,215.48
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - -

Safeguard Documents

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Evaluation Documents

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