ADB-India $50-million Loan Agreement for Financial Management Reforms
The Asian Development Bank (ADB) and the Central government of India have signed a $50-million policy-based loan. The loan would be utilized to improve the financial management procedures.
- The loan would also be used in operational efficiencies which aims to achieve more fiscal savings, to promote the informed decision-making, and to improve service delivery in West Bengal.
- The signatories to the West Bengal Public Finance Management Investment Programme were the Additional Secretary, Department of Economic Affairs in the Ministry of Finance, CS Mohapatra and Country Director of ADB’s India Resident Mission, Takeo Konishi.
How this is significant?
- The integration of the State’s financial and information systems through the whole-of-government approach of programme will improve the delivery of public services.
- It will also generate the fiscal savings which will help the growth-enhancing development financing.
- With the support of interoperable e-Government platforms, this programme will also ensure to streamline the social protection benefits including the pension and provident fund.
- It will also facilitate the gender-disaggregated data, tax payments and revenue collection.
- The new module will also help in tracking and monitoring the development projects within the integrated financial management system.
Reforms in Public finance
With the help of loan, a centre for fiscal policy and public finance will be established. It will help in deepening the capacity of the State government officials on public finance management. It will also develop a web-based grievance redress system to transport corporations. The urban local bodies will also provide a credible citizen-government interface.
The loan has been sanctioned on past ADB policy-based programmes in 2012 and 2017.