Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) SOUTH ASIA | India | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 2 | ARCHIVED on 29-Jun-2018 | ISR33162 | Implementing Agencies: Republic of India, Assam Society for Comprehensive Financial Management System (AS-CFMS) Key Dates Key Project Dates Bank Approval Date:15-Jun-2017 Effectiveness Date:25-Sep-2017 Planned Mid Term Review Date:16-Mar-2020 Actual Mid-Term Review Date:-- Original Closing Date:30-Sep-2022 Revised Closing Date:30-Sep-2022 Project Development Objectives Project Development Objective (from Project Appraisal Document) 13. The Project Development Objective (PDO) is: "to contribute to improvement in predictability and transparency in budget execution and efficiency in tax administration in Assam." The key beneficiaries of the project will include: the Finance Department, Office of Commissioner of Taxes, Department of Excise and Department of Information Technology; procuring agencies in select line departments and government officials. All line departments, directorates and field level units will benefit from having information of budget execution rates and status of payment of bills. The project will also benefit the citizens of Assam through efficient processes and better service delivery provided by public institutions (such as electronic payments and collections for services, better public procurement and enhanced tax payer services) and enhanced transparency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Strengthening Public Finance Institutional Capacity:(Cost $3.70 M) Strengthening Expenditure and Revenue Information Systems:(Cost $39.00 M) Project Management, Monitoring & Evaluation and Coordination:(Cost $1.20 M) Front end fee:(Cost $0.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Moderately Satisfactory 6/29/2018 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions Key issues were discussed with Finance Department to consider deploy the core team in PMU, especially for the FMIS component on full time basis, hold the Governing Body meeting of the AS-CFMS to operationalize the mandated delegation of administrative and financial powers for decision making. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  Moderate  Moderate  Moderate Macroeconomic  Moderate  Moderate  Moderate Sector Strategies and Policies  Low  Low  Low Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  Substantial  Substantial  Substantial Fiduciary  Moderate  Moderate  Moderate Environment and Social  Low  Low  Low Stakeholders  Low  Low  Low Other  --  --  -- Overall  Moderate  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Reduction in share of discretionary expenditure reported in the last quarter of the financial year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 -- 64.00 48.00 Date 31-Mar-2015 -- 31-Mar-2018 31-Mar-2022 6/29/2018 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) PHINDPDOTBL  Public access to key budget execution reports (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 31-Mar-2016 -- 31-Mar-2018 31-Mar-2022 PHINDPDOTBL  Public access to procurement contracts awarded (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 8.00 90.00 PHINDPDOTBL  Reduction in cost of collection of tax revenue in Excise Department (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.01 -- 3.17 3.00 Date 31-Mar-2015 -- 31-Mar-2018 31-Mar-2022 PHINDPDOTBL  Reduction in cost of collection of taxes in office of the Commissioner of Taxes (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 1.27 -- 1.24 0.80 Date 31-Mar-2015 -- 31-Mar-2018 31-Mar-2022 Overall Comments The indicators on share of discretionary expenditure in last quarter and cost of collection of excise and Commissioner of Tax are based on provisional figures reported by the Accountant General and may undergo some marginal changes. There is an increase in share of discretionary expenditure in the last quarter of the financial year. This is expected to gradually reduce with project's planned focus to aspects relating to planning, budgeting and its execution in key high spending departments, especially in the FY 2018-19 and 2019-20. 6/29/2018 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Intermediate Results Indicators PHINDIRITBL  Enhanced controls in budget execution and reporting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Budget distribution by HoDs and In progress. GoA has BCOs, budget Processes for budget automated the budget control by the distribution, budget control, allotment process from Treasury, and and bill submission by the the Finance Dept to bill submission Value -- DDOs are manual; and no BCO and DDO for FY by the DDOs decision support system 2018-19 by interface of automated; for Finance Department CTMIS and FinAssam decision as an interim measure support system for the Finance Department operationalized Date 31-Mar-2016 -- 31-Mar-2018 31-Mar-2022 Comments While the contract award for new FMIS solution is delayed the state has automated the budget allotment process from Finance Dept to BCO and DDO's for FY 2018-19 budget by interface of CTMIS and FinAssam which has eliminated the manual process and delayed associated with it. PHINDIRITBL  Increased e-collection and e-payments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 100% of excise and non-GST tax administered by E-collection for Excise NIL; CoT collected for the CoT 35% by electronically; volume for VAT and nil for Value -- In progress and at least other taxes; and 90% of the fragmented systems and payments low base of e-payments made electronically by the treasuries. Date 31-Mar-2016 -- 31-May-2018 31-Mar-2022 Comments Common e-collection portal E-Gras has been developed with support from NIC and interfaced with interim IT application for Excise 6/29/2018 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Dept and also integrated with the bank (SBI). It will be rolled out after integration with Commercial Tax Dept's IT application and completion of security audit. PHINDIRITBL  Enhanced capacity in Cash and Debt Management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cash and Debt Management Unit Cash & Debt Mgt cell established; Fragmented institutions for constituted and annual annual debt management; borrowing plan and borrowing Value absence of active cash -- monthly cash flow informed by and debt management and forecasts developed for realistic cash- cash-flow forecasting FY 2018-19 flow forecasts; Debt Statistical Bulletin published. Date 31-Mar-2016 -- -- 31-Mar-2022 PHINDIRITBL  Enhanced public disclosure of budget information and Citizen's Engagement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Budget Disclosures enhanced in FY 2018-19 Enhanced Budget. These include budget (i) budget at a glance disclosure to (highlights); (ii) an citizens, analytical statement; (iii) including information on transfers Value Limited budget disclosures -- compliance to local bodies; (iv) with the report on actions taken disclosure on the budget of the requirements of previous year; and (v) a the Assam children’s budget and a FRBM Act. gender budget. Date 31-Mar-2016 -- 31-Mar-2018 31-Mar-2022 6/29/2018 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) PHINDIRITBL  Strengthened public procurement framework and capacity building of officials (of which 5% are female) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Procurement rules and SBD notified and In progress. Draft published; Procurement rules resolution of Outdated procurement finalized and vetted by procurement rules; no SBDs; and no legislative department. grievances Value -- system for public Preparation of Standard disclosed procurement training Bidding Document in publically; progress. enhanced procurement capacity of GoA's officials (1500 officials). Date 31-Mar-2016 -- 31-May-2018 31-Mar-2022 PHINDIRITBL  Increased coverage of e-Procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target GO issued for mandatory e-Procurement for Enhanced procurement above INR 20 51% increase in e- coverage of e- Value lacs; e-Procurement -- procurement tender Procurement tender value in value over baseline (250% increase 2015 2016 - INR 5,700 over baseline) crores. Date 31-Mar-2016 -- 31-Mar-2018 31-Mar-2022 Comments E-Procurement tender value in FY 2017-18 was Rs 8600 crores as compared to baseline figure of Rs 5700 crores in FY 2015-16. All e- procurement shifted to one portal as against use of multiple portal earlier. PHINDIRITBL  Increased human resource capacity in PFM of officials (of which 10% are female) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Enhanced PFM No formal training strategy capacity of the Value and sporadic training on -- TNA is in progress GoA's finance PFM officials (2250 officials trained) 6/29/2018 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Date 31-Mar-2016 -- 31-May-2018 31-Mar-2022 Comments Training Needs Assessment in Progress PHINDIRITBL  Enhanced services provided by office of the Commissioner of Taxes (CoT) using e-Governance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Fragmented and outdated Enhanced IT applications; e-return taxpayer filing at 15% for VAT; e- services Value returns do not have in-built -- In progress provided by electronic scrutiny feature; CoT for returns, No e-governance solutions obligations and for non GST state taxes communication Date 31-Mar-2016 -- 31-May-2018 31-Mar-2022 Comments Bid process for acquiring new IT application for CTD completed and evaluation finalized with World Bank's clearance. GoA has to decide on award of contract. PHINDIRITBL  Strengthened institutional capacity in office of the Commissioner of Taxes (CoT) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Inadequate audit systems Core tax that is, lack of system- administration Value based audit selection and -- In progress functions limited tax analytical strengthened capacity Date 31-Mar-2016 -- 31-May-2018 31-Mar-2022 Comments The consultant has submitted eight reports based on which the CTD has to develop a short and medium term action plan. Based on acceptable recommendations, action to be initiated to strengthen CTD's capacity to administer GST. Of particular importance is strengthening audit capacity and tax analytics functions. 6/29/2018 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) PHINDIRITBL  Enhanced services provided by Excise Department using e-Governance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target e-Governance solution operationalized in the Excise Department All procedures and with (a) e- processes are manual in services to Value the Excise Department; -- In progress taxpayers and Excise revenue INR 808 (b) MIS for crore in 2015-2016 monitoring and regulation; 80% increase in excise revenue over baseline Date 31-Mar-2016 -- 31-May-2018 31-Mar-2022 Comments Excise Rules approved by way of Gazette Notification. Interim IT application for issue application and issue of permits developed. Detailed Project Report prepared based on which bid document for integrated e-governance solution for excise function prepared. Overall Comments There is satisfactory progress on the soft elements reforms especially on budget disclosures, e-procurement and procurement rules and development of common e-collection portal. The decisions on the approach to development of the 3 IT solutions for FMIS, Commercial Tax and Excise are delayed by about 6 months. Data on Financial Performance Disbursements (by loan) 6/29/2018 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P157198 IBRD-87650 Effective USD 35.00 35.00 0.00 1.98 33.02 5.6% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157198 IBRD-87650 Effective 15-Jun-2017 27-Jun-2017 25-Sep-2017 30-Sep-2022 30-Sep-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/29/2018 Page 9 of 9 Public Disclosure Copy