The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) Strengthening Public Financial Management in Rajasthan (P156869) SOUTH ASIA | India | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 6 | ARCHIVED on 23-Dec-2021 | ISR49527 | Implementing Agencies: Department of Economic Affairs (MOF), Republic of India Key Dates Key Project Dates Bank Approval Date: 01-May-2018 Effectiveness Date: 26-Jul-2018 Planned Mid Term Review Date: 29-May-2021 Actual Mid-Term Review Date: 05-Jun-2021 Original Closing Date: 31-Mar-2024 Revised Closing Date: 31-Mar-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is: "to contribute to improved budget execution, enhanced accountability, and greater efficiency in revenue administration in Government of Rajasthan". Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening Public Financial Management Framework:(Cost $6.00 M) Strengthening Expenditure and Revenue Systems:(Cost $21.65 M) Project Management and Capacity Building:(Cost $3.30 M) Front End Fee:(Cost $0.05 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Several complex public financial management (PFM) reforms have been undertaken successfully under the project, including development of a commitment control system, institutional strengthening/business process re-engineering of the Transport Department, updated framework for decentralized participative planning, conduct of a rationalization of schemes exercise, and strengthening of local fund audit/internal audit. It is imperative that these reforms are now fully mainstreamed and made an integral part of government systems. Some of these reforms have been undertaken at the sub-national level for the first time in India, and it will be great to share these achievements and consequent learnings with other States to help expedite PFM reform momentum in the country. The Bank will support this initiative through the PFM Knowledge and Innovation Network (PFMKIN). Following the first year of project implementation, when all critical reform consultancies for the first phase were put in place, the pace of progress slowed primarily down due to COVID-19 lock down and frequent transfer of senior personnel. However, the project implementation has 12/23/2021 Page 1 of 8 The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) improved in last year, and with another 2.4 years to go under the project, the disbursements and commitments current stand at 43% and 53% respectively. As a result, the overall progress towards achievement of the project development objective (PDO) and implementation progress have been maintained at a level of Satisfactory and Moderately Satisfactory, respectively. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- Moderate Moderate Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Project Development Objective IN01078191 ►Strengthened budget execution by improving controls over commitment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target YR2: Achieved YR2: Achieved YR3: Target: Policy on YR3: Target: Policy on CCS being used in 20 Commitment Control Commitment Control (twenty) departments approved and notified by approved and notified covering 90% of their Commitment Control GoR; by GoR; Value capital expenditure System does not exist Policy, procedures/ Policy, procedures/ above threshold as guidelines and software guidelines and established by the solution implemented in software solution policy 10 (ten) (cumulative) implemented in 10 departments. (ten) (cumulative) Status: Under progress departments. 12/23/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) Status: Under progress Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 Comments: IN01078192 ►Institutional strengthening (IS) of Local Fund Audit Department (LFAD) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Status: Year 1 Status: Year 1 indicator indicator achieved. achieved. Year 2 partially Year 2 partially achieved. achieved. Year 3: Target: • Risk- Year 3: Target: • based audit methodology Risk-based implemented across all audit methodology Regional Offices of implemented across all LFAD. Regional Offices of • Audit LFAD. New framework Management Software • Audit Outdated audit manual followed in all Regional (AMS) operationalized in Management Software Value and processes and no Offices of LFAD and headquarters and at least (AMS) operationalized automation. audit process migrated one Regional Office of in headquarters and at to AMS LFAD. least one Regional • All technical Office of LFAD. staff of LFAD trained in • All technical the new framework. staff of LFAD trained in the new framework. Status: Pending achievement. Status: Partially achieved. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078193 ►Strengthened public procurement framework and capacity (including training of minimum 5% female employees of the department) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Draft SBDs for new Year 3: Target : 4,000 Year 3: Target : 4,000 SBDs notified and contracting methods officials trained and officials trained and published. under preparation. certified in public certified in public procurement procurement Database of debarred Lack of institutionalized firms developed. public procurement Status: Year 1 and 2 - Status: training system with Delayed due to late hiring Year 1 - Achieved. Procurement capacity limited outreach. of consultants, work now Year 2 - Achieved. of the officials underway. Year 3 - Pending due enchanced. No database of debarred Year 3 - Pending due to to delay in hiring of firms. delay in hiring of consultants, consultants, procurement procurement process process now underway. now underway. 12/23/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078194 ►Improving effectiveness of Tax Audit in the Commercial Taxes Department (CTD) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Status: YR1: Achieved Status: YR1: Achieved Year 3 Target: Audit Year 3 Target: Audit hit hit rate improves to Audit hit rate improved Value Audit hit rate low (10%) rate improves to 15% 15% to 20% Status YR2 and YR3: Status YR2 and YR3: Pending achievement. Pending achievement. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 Intermediate Results Indicators by Components Strengthening Public Financial Management Framework IN01078195 ►Implementation of a strengthened decentralized participatory planning process in Rajasthan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Status: Weak decentralized YR 1: Pending. District level planning participatory planning Status: YR 1: Pending. YR2: Achieved. DP under strengthened Value process and not linked to YR2: Partly achieved prepared for first pilot, framework the annual budget YR3: Pending. but not on any mainstreamed in process. software. RDPR and DoP. YR3: Pending. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078197 ►Institutional strengthening of internal audit (IA) function (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Modernized Internal Audit setup needs Audit Manual strengthening; Outdated Status: YR 1, YR2 and Status: YR 1, YR2 and developed and action Value manual, rules, circulars, YR3: Achieved. YR3: Achieved. plan for and processes. implementation notified. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078199 ►Data for policy action (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Administrative/MIS/trans Status: YR1, YR2 and Status: YR1, YR2 and Usage of developed Value actional data not being YR3: Achieved. YR3: Achieved. indices in planning and 12/23/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) used for planning and monitoring; develop monitoring purposes. plan on updating indices. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 Strengthening Expenditure and Revenue Systems IN01078196 ►Increased coverage of e-procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target e-Procurement tender Status: YR1, YR2 and Status: YR1, YR2 and Enhanced coverage of Value value in 2016-17 - INR YR3: Achieved. YR3: Achieved. e-Procurement 23,000 crores Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078198 ►Reduced delays by making awards within initial bid validity period in ten identified departments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 90% contracts Estimated 50% contracts Status: YR 1 and YR2: Status: YR 1, YR2 and awarded within initial Value are awarded within initial Achieved. YR3: Report YR3: Achieved. bid validity period in bid validity period. awaited the ten departments. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078200 ►Improved awareness of SPFC (percentage citing awareness in total users surveyed) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Enhanced awareness Survey done by Status: Study to assess of SPFC among Consumer Unity & Trust Value awareness of SPFC is Status: Achieved stakeholders; survey to Society International ongoing. be conducted in Year 3 (CUTS) (12% for SPFC) and Year 5. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078201 ►Reduction in tender notice advertisement expenditure (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The expenditure incurred Tender notice in the Year 207-18 on advertisement NIT is 0.41% of the Status: YR1 and YR2: Status: YR1, YR2 and expenditure reduced Value procurement value Achieved YR3: Pending YR3: Achieved up to 0.20% of the (Rs.27,000.00 cr.) during procurement value 2017-18. during 2020-21. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078202 ►Improve debt management - Enhance transparency and systemize procedures (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/23/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) Debt records are manual and not centralized. Consolidated and electronic debt recording Strengthened debt system does not exist. management - reliable MTDS, DSA prepared; Status: YR1 and YR3: Status: YR1 and YR3: Value MTDS is not prepared. consolidated debt Pending. Pending. database used to DSA does not include prepare analytical shocks and scenario outputs. analysis. Dedicated debt statistical bulletin not prepared. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078203 ►Improved cash management practices as measured by improved accuracy in cash flow forecasts (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cash flow forecasts Status: delayed due to Status: delayed due to prepared more Monthly cash flow hiring of consultants. hiring of consultants. Value accurately and error forecasts not prepared. Proposed (Yr1 to Yr 2) to Proposed (Yr1 to Yr 2) margins reduced to be shifted forward. to be shifted forward. less than 10%. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078204 ►Strengthened tax administration in the CTD (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Status: Year 1 Achieved. Status: Year 1 Achieved. Year 2 TNA Year 2 TNA completed. Need to align institutional completed. Report on Report on structure and processes institutionalizing Capacity of the CTD Value institutionalizing training in the CTD to evolving training strategy and strengthened. strategy and training indirect tax regime. training courseware courseware prepared prepared Year 3 : Year 3 : Pending. Results obtained being reviewed Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078205 ►Decline in non/stop-filers in the CTD (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Risk to revenue Non/stop filers (annual managed by reducing returns) as percentage of the percentage of active dealers. Baseline Status: YR 2 and 3: Status: YR 2 and 3: Value non/stop filers as to be determined on the Pending. Pending. percentage of basis of FY 17-18 in FY registered active 2018-19. dealers to 15%. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078206 ►Value of tax recoveries (reduction in arrears) in the CTD (Text, Custom) 12/23/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) Baseline Actual (Previous) Actual (Current) End Target Tax arrears for last three Tax arrears for last Status: YR1, YR2 and Status: YR1, YR2 and Value years at 57% of total three years reduced to YR3: Pending. YR3: Pending. arrears. 30% of total arrears. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078207 ►Strengthening of Transport Department (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The average growth in Growth in Transport the Transport Status: YR1 and YR2: Department's revenue Department revenue Status: YR1 and YR2: Value Achieved YR3: for FY 2021-22 over during past four years Achieved YR3: Pending. Pending. FY 2020-21 by (from 2013-14 to 2016- 14.00%. 17) is 12.24%. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 IN01078208 ►Strengthening of Excise Department (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The average growth being the CGAR in the Growth in Excise Status: YR1 and YR2: Excise Department Status: YR1 and YR2: Department's revenue Outstanding, but Value revenue during past Outstanding, but for FY 2021-22 over underway YR3: three years (from 2014- underway YR3: Pending. FY 2020-21 by Pending. 15 to 2016-17) is 14.00%. 12.46%. Date 01-May-2018 18-Jun-2021 16-Dec-2021 31-Mar-2024 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156869 IBRD-88550 Effective USD 21.70 21.70 0.00 9.31 12.39 43% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156869 IBRD-88550 Effective 01-May-2018 29-May-2018 26-Jul-2018 31-Mar-2024 31-Mar-2024 Cumulative Disbursements 12/23/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Strengthening Public Financial Management in Rajasthan (P156869) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/23/2021 Page 8 of 8