GOI, ADG sign $300 m loan agreement to continue fiscal reforms in Bengal

Speed Post News Network

New Delhi : The Asian Development Bank (ADB) and the Government of India signed a $300 million loan on October 24, 2017,  to continue a series of fiscal reforms in the State of West Bengal to improve the quality of public service delivery.
The Second West Bengal Development Finance Programme targets a further increase in public investment through reduction of unproductive expenditure, and savings from efficiencies in revenue collections. The programme will build on earlier intervention under Phase I of the project through the $400 million programme that targeted a comprehensive fiscal consolidation programme in the state.
“The Program aims to further deepen the reforms with focus on expenditure rationalization, improvement in revenue administration, and facilitation of more private investment in the state,” said Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, who signed the loan on behalf of the Government of India, according to a PIB release.
“The new programme will create the fiscal space necessary to sustain higher public investment in the State which could put the state’s finances on a balanced and sustainable path,” said Kenichi Yokoyama, ADB Country Director for India, who signed for ADB. The programme agreement was signed by Parwez Ahmad Siddiqui, Secretary, Finance Department, Government of West Bengal.  Spread over two years, the programme will also carry forward reforms such as linking medium term expenditure plans to actual budgets, supported by strengthening internal audit system, and enhancements in the integrated financial management system (IFMS).