World Bank supports Indian state’s financial reforms

8 Mar 19

The Indian state of Chhattisgarh is pushing on with its public financial management reforms with the support of a $25.2m loan from the World Bank.

The state in the centre-east of the country is reforming its expenditure management, including planning, investment management, budget execution, public procurement to boost accountability and transparency.  

The agreement, which was signed between the state, the bank and the Indian government earlier this week, will support the local government’s initiative to put in place automated systems for processing payments, improve property tax collection and tax return filing.

Sameer Kumar Khare, additional secretary, Department of Economic Affairs at the Indian Ministry of Finance, said: “The government of India supports reforms that will contribute toward improving public expenditure management.

“The Chhattisgarh PFM reflects the priorities identified by the state and builds, incrementally, on ongoing reforms around PFM.”

The project will aim to improve the institutions’ management of public finances and facilitate cross-learning from PFM reforms by other Indian states.

Hisham Abdo, acting country director for India at the World Bank, said: “The Chhattisgarh government has correctly identified improvements in PFM as a key step for achieving its development potential.

“This will ensure that the state can invest more and with greater efficiency, for its poor and vulnerable.”

The project will benefit almost 11,000 villages and 168 urban municipalities in the state.

The World Bank and the government of India also signed a $250m agreement to boost rural incomes in 13 states across the country earlier this week.

It will promote women-owned and women-led farm and non-farm enterprises and enable them to build businesses and generate more income. 

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