India: India Municipal Finance Study

Sovereign Project | 43214-012

Summary

Public finance issues requiring urgent attention, including extremely low revenues, poor service delivery, high-level deficit, and the need to upgrade infrastructure facilities continue to be in the 11th FYP of India (FY2007-FY2011). Closely aligned with the priorities of the 11th FYP, ADB Draft Country Partnership Strategy (CPS 2009-2012) emphasizes supporting infrastructure development in urban sector, catalyzing investment through PPP, and overall improvement of development effectiveness. Strategy 2020 also indicates the urban sector as one of the key outcome areas to be monitored for development effectiveness.

Latest Project Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name India Municipal Finance Study
Project Number 43214-012
Country India
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Public sector management - Public expenditure and fiscal management

Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy Public finance issues requiring urgent attention, including extremely low revenues, poor service delivery, high-level deficit, and the need to upgrade infrastructure facilities continue to be in the 11th FYP of India (FY2007-FY2011). Closely aligned with the priorities of the 11th FYP, ADB Draft Country Partnership Strategy (CPS 2009-2012) emphasizes supporting infrastructure development in urban sector, catalyzing investment through PPP, and overall improvement of development effectiveness. Strategy 2020 also indicates the urban sector as one of the key outcome areas to be monitored for development effectiveness.
Impact Improved fiscal and financial performance of ULBs
Project Outcome
Description of Outcome Identification of key reform measures and options for ULBs effective functioning to provide urban services and infrastructure
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Component 1: Reviewing overall issues and assessment of the sustainability of municipal finance in

India, accompanied by suggestions for municipal fiscal policy and reform agenda.

Component 2: Broaden knowledge-base regarding the municipal governments' fiscal and financial system through international good practices and knowledge partnership

Component 3: Increasing awareness and building-up consensus in the political arena on the need for municipal finance reform.

Status of Implementation Progress (Outputs, Activities, and Issues) Draft Final Report reviewed by ADB and GOI in June - July 2011.
Geographical Location 33 Municipalities of 5 Seleced states of India
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

A total of 50 person-months of inputs from a national research institution are anticipated, intermittently, over the 18 months implementation period. About 2 person-months input from an international expert on public finance will be required to advise and to work with NIPFP at critical points, such as formulating the study direction, devising policy measures and finalizing the report. International consultants will be engaged on an individual basis, in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Office equipment and materials to be financed by the TA will be procured using the shopping method in accordance with ADB's Guidelines for Procurement (2007, as amended from time to time). At the end of the TA, the procured equipment will be turned over to the EA.

The TA will use the single-source selection method for consultant selection, as a firm basis, to get the most qualified research institution in India in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). As an apex institution to the Ministry of Finance, NIPFP's research has been influential in the policy making for matters on this subject in India.

Responsible ADB Officer Vivian Castro-Wooldridge
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Department of Economic AffairsDr. Anup PujariDepartmnet of Economic Affairs
Timetable
Concept Clearance 08 Jun 2009
Fact Finding 09 Jul 2009 to 22 Jul 2009
MRM -
Approval 24 Aug 2009
Last Review Mission -
PDS Creation Date 29 Jun 2009
Last PDS Update 05 Aug 2011

TA 7334-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Aug 2009 08 Sep 2009 08 Sep 2009 28 Feb 2011 30 Aug 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 170,000.00 0.00 0.00 0.00 170,000.00 24 Aug 2009 324,264.88

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.