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India - Uttar Pradesh Fiscal Reform and Public Sector Restructuring Project (Inglês)

Project outcome is rated satisfactory and project sustainability is likely. world Bank performance is satisfactory based on the ratings for lending and outcomes. Borrower performance is satisfactory based on the ratings of project preparation, implementation, and outcomes. Lessons learned include the following points: Programmatic adjustment lending to selected states of India can be an effective instrument for supporting fiscal reforms at the state level. When policy formulation and reform implementation capacity is weak, as in the case of Uttar Pradesh, a more strategic design can lead to a more focused but deeper dialogue. Detailed listing and auditing of a subset of line items within the expenditure budget, identified as High Priority Development Expenditures, tends to create a "budget within a budget"--a better approach would encourage reprioritization within the budget, in the context of an improved budget process, while avoiding micro-management. In establishing an effective poverty and social monitoring system, emphasis should be placed from the outset on a) institutionalizing a system of periodic collection and analysis of data; and b) fostering demand for the use of such data, both within and outside the government.




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