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: 5 | ARCHIVED on 15-May-2020 | ISR41583 | 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: 15-Jul-2020 Actual Mid-Term Review Date: Original Closing Date: 30-Sep-2022 Revised Closing Date: 30-Sep-2022 pdoTable 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 Components Table 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 €Moderately Satisfactory €Moderately Satisfactory Overall Implementation Progress (IP) €Moderately Satisfactory €Moderately Satisfactory Overall Risk Rating €Moderate €Moderate Implementation Status and Key Decisions The project has made progress on the soft elements of reforms such as: cash and debt management; development and in rolling out of the common e-collection portal for GoA (eGRAS); and making e-Payments through Reserve Bank of India's portal e-Kuber. Contract award for the IT 5/15/2020 Page 1 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) application for Commercial Taxes and Excise has been completed and development is in progress, albeit likely to be delayed by six to nine months to reach Go Live status and the contract to scale up and make the existing FMIS solution (FinAssam) more comprehensive, is close to award. However, implementation and project disbursements lag behind initial estimates. The following issues are critical to achievement of Disbursement Linked Indicators (DLIs) and to ensure that the development objectives of the project are met in a timely manner: (i) approval of the procurement rules to support implementation of the Procurement Act, 2017 and enforce use of full cycle of e-procurement system; ii) contract award for FMIS; and (iii) a restructuring of the project to make mid-course corrections.. 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 €Substantial €Substantial €Substantial Sustainability Fiduciary €Moderate €Moderate €Moderate Environment and Social €Low €Low €Low Stakeholders €Low €Low €Low Other -- -- -- Overall €Moderate €Moderate €Moderate Results PDO Indicators by Objectives / Outcomes To contribute to improvement in predictablity and transparency in budget execution IN00837410 ►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 55.00 55.00 48.00 Date 31-Mar-2015 31-Mar-2019 31-Mar-2020 31-Mar-2022 The CAB agitation since Dec 2019 and the COVID-19 lock down has resulted in a delay in submission of monthly accounts and vouchers by the various DDO's and Treasuries to the State AG for final Comments: compilation and generation of monthly accounts. The AG has published the monthly and Year to Date accounts summary till Dec 2019 only. While expenditure data for the year ended March 31, 2020 has 5/15/2020 Page 2 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) been shared by the Directorate of Accounts and Treasuries of GoA some information e.g on interest expenditure, part of pension costs and expenditures of Autonomous councils are accounted for directly by the AG, which is currently not available. For the purpose of this ISR the previous (FY 2019) percentage has been reported and the information for FY 2019-20 will be updated when the official expenditure figures for FY 2020) from the AG are available. Due to these and the COVID-19 impact on the State’s finances, this indicator will be reviewed during restructuring. For the purpose of the interim ISR, we have retained it at 55% and will be updated as part of the mid term review. IN00837422 ►Public access to key budget execution reports (Yes/No, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2016 31-Mar-2019 31-Mar-2020 31-Mar-2022 The target for this PDO Indicator is to provide public access to key budget execution reports in year 5 and Comments: hence is not due yet IN00837424 €Public access to procurement contracts awarded (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 14.00 90.00 To contribute to improvement in efficiency in tax administration in Assam IN00837421 ►Reduction in cost of collection of tax revenue in Excise Department (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.01 2.85 3.08 3.00 Date 31-Mar-2015 31-Mar-2019 31-Mar-2020 31-Mar-2022 The year 3 target (3.5%) has been achieved. Comments: IN00837423 €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 0.89 0.88 0.80 Date 31-Mar-2015 31-Mar-2019 31-Mar-2020 31-Mar-2022 Overall Comments PDO There are challenges in correctly determining the universe of contracts awarded in a specific time frame and in getting the departments to use the full cycle of e-procurement which will facilitate issue of award of contract (AOC) through the e-procurement system which enables publication of award of contract information, despite directives (Office Memorandum) from the Finance Department and constant follow up/ support from the project. This is the primary reason for the low percentage. The year 3 targets for the revenue indicators have been achieved. The cost of collection in FY 2020 has marginally increased for Excise due to filling of many vacant posts, which has increased the salary cost in FY 2019-20. The cost of collection for CTD and Excise has also gone up 5/15/2020 Page 3 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) since previous year due to inclusion in the cost of collection of a share of the investment cost (IT equipment and e-governance solutions) supported under the project which has been amortized over the useful life of the IT equipment/e-governance solution. With COVID-19 lock down and the likely medium-term impact of the economic slowdown on the State's tax Revenues, the PDO end targets may need to be reviewed as part of restructuring. Intermediate Results Indicators by Components Strengthening Public Finance Institutional Capacity IN00837425 ►Enhanced capacity in Cash and Debt Management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cash & Debt Management Unit has been established and staffed. Annual Cash and Debt borrowing calendar is Management prepared based Unit Fragmented institutions cashflow forecast on a established; for Cash flow forecast on a weekly /monthly basis annual debt management; weekly /monthly basis which has stabilized borrowing Value absence of active cash has stabilized and error and error margin informed by and debt management margin reduced to reduced to around 5%. realistic cashflow and around 5%. Some of the aspects forecasts; cash-flow forecasting that go in a Debt Debt Statistical Statistical Bulleting are Bulletin available in the FRBM published. Statement and GoA is taking steps to publish a separate Bulletin. Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 IN00837428 ►Strengthened public procurement framework and capacity building of officials (of which 5% are female) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contracting of UNDP for establishing State The Procurement Procurement Facilitation Rules are pending Cell (SPFC) is underway. submission to and Procurement The updated draft approval by the rules and SBD version of the Cabinet. This delay in notified and Procurement Rules has approval of the Rules published; Outdated procurement been resubmitted to the is impacting the resolution of rules; no SBDs; and no Legislative Department planned downstream Value procurement system for public for approval of changes procurement reform grievances procurement training pursuant to additional activities relating to disclosed comments received from issue and application publicly; stakeholders. Following of the SBDs, training enhanced approval by the and capacity building procurement Legislative Dept, the and formation of the Rules will be placed in Procurement Reform the next Cabinet meeting Unit. for its approval. 5/15/2020 Page 4 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 111 officials have been trained on the Procurement Rules of which female employees were 18 (16%) and first set of case studies have been prepared. The training on procurement will be scaled up on approval of Comments: the Procurement Rules. In addition, finance cadre officials were provided with orientation on the new procurement rules. IN00837430 ►Increased coverage of e-Procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target There is a 309% GO issued for mandatory increase in tender e-Procurement for value through e- procurement above INR 226% increase in tender Enhanced procurement during 20 value through e- coverage of e- FY2019/20 over the Value lacs; e-Procurement procurement during Procurement baseline year tender value in FY2018/19 over previous (250% increase FY2015/16, though 2015 2016 - INR year Fy2017/18 over baseline) there is a decline of 5,700 10% over previous crores. year FY2018/19. Date 31-Mar-2016 12-Jul-2018 05-May-2020 31-Mar-2022 e-Procurement tender value in FY2019/20 was Rs. 23,339 crores (in FY2018/19 it was Rs. 28100 crores) compared to baseline figure of Rs 5700 crores in FY2015/16. This is contributed by shifting all e- Procurement to one portal as against use of multiple portals earlier. The project has achieved the end Comments: target of a 250% increase in e-procurement over the baseline, despite an increase in the e-procurement threshold. However full cycle of e-procurement functionalities leading to issue of Award of Contract (AoC) not being done through the system. IN00837432 ►Increased human resource capacity in PFM of officials (of which 10% are female) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training and capacity building workshops in PFM have focused on macro fiscal forecasting, open budget, child budgeting and debt Enhanced PFM No formal training Formal training needs management. In capacity of the strategy assessment has been Value addition, core team GoA's finance and sporadic training on deferred till the FMIS members and finance officials (2250 PFM contract is in place staff have benefitted officials trained) from exposure visits to study similar systems and IT related training on Advanced Microsoft Office Productivity, UI/UX. Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 A structured training program has not been prepared or organized and attempts on twinning arrangements Comments: with national level agencies have not yet materialized. 5/15/2020 Page 5 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Strengthening Expenditure and Revenue Information Systems IN00837426 ►Enhanced controls in budget execution and reporting (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target GoA has taken decision to scale up existing The contract with the FinAssam solution to a Systems Integrator for more comprehensive the FMIS solution is FMIS solution. A formal under finalization and RFP is to be issued to is likely to be awarded the present system Processes for budget by June 2020. The Budget distribution by integrator and contract distribution, budget Budget distribution HoDs and BCOs, likely to be awarded by control, and bill module from HoD to budget control by the Oct 2019. Value submission by the DDOs BCO has been Treasury, and bill On finalization of the are manual; and no operationalized and submission by the contract award, the decision support system integrated with DDOs Budget distribution for Finance Department treasury system. All automated; decision module from HoD to transactions, except BCO has been for the Works and operationalized and Forest Departments, integrated with treasury are online and routed system, will be through FMIS. crystallized as a long term solution.. Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 IN00837427 ►Increased e-collection and e-payments (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target During FY2019/20, collections through the e-collection portal uniform online eGRAS (eGRAS) has been rolled aggregated Rs. 4755 out to both Excise and crores. Collections in CoT and integration Excise Department 100% of excise achieved with their through eGRAS are and non-GST respective portals. Excise more than 80%. CTD tax E-collection for Excise and non-GST taxes is in the process of administered by NIL; collected through eGRAS migrating all CoT collected for the CoT 35% by during May and June collections to e-GRAS electronically; volume for VAT and nil 2019 is 90% of the total Value and dis-continue its and at least for collections existing e-collection 90% of the other taxes; and applications and the payments fragmented systems and e-Kuber now covers all transition is likely to made low base of e-payments Treasuries and average happen soon. electronically 60% of the Treasury by the payments were made e-Kuber now covers all treasuries. through e-Kuber during Treasuries and over the period Nov 2018 to 80% of the Treasury April 2019. payments were made through e-Kuber Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 Besides, CoT and Excise Departments, additional 15 departments have been on-boarded in e-GRAS for Comments: revenue collection and includes i.e Forest, Secretariat Administration, Geology and Mines, General Administration. 5/15/2020 Page 6 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) IN00837429 ►Enhanced public disclosure of budget information and Citizen's Engagement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Enhanced disclosures in Budget for FY 2020- Enhanced 21 include budgetary Budget Disclosures budget impact of major policy enhanced in FY 2019-20 disclosure to decisions. The other Budget and also include: citizens, disclosures required (i) key fiscal indicators including Limited budget are object head wise Value (ii) changes in accounting compliance disclosures expenditure, standards and policies with the outstanding liabilities, affecting fiscal indicators disclosure salary details and (iii) borrowings and requirements of procurement plans of guarantees the Assam three major spending FRBM Act. departments that have yet to be disclosed. Date 31-Mar-2016 12-Jul-2018 05-May-2020 31-Mar-2022 GoA is collaborating with Center for Budget and Governance Accountability (CBGA) to enhance budget documentation and transparency. GoA's budget is available on the Open Budgets India portal in accessible and open format and is now completely available in electronic format (eBudget) since 2018/19. GoA prepares a Citizen’s Budget, a Child Budget and Gender Budget. The Budget Speech for 2020/21 Comments: has QR codes which takes the reader to video clips to view the development transformation in Assam. In a survey conducted by Transparency International, Assam emerged the top State in India in terms of best practices followed on four parameters namely public disclosure, budgetary process, post budget fiscal management and efforts to make budget more transparent and citizen friendly. IN00837431 ►Enhanced services provided by office of the Commissioner of Taxes (CoT) using e-Governance (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Fragmented and outdated The contract for new IT applications; e-return IT application for CoT Enhanced filing at 15% for VAT; The contract for new IT has been signed in taxpayer ereturns application for CoT has May 2019 and services Value do not have in-built been signed in May 2019 implementation is in provided by electronic scrutiny and implementation is in progress. The various CoT for returns, feature; progress. utilities are being obligations and No e-governance developed in the new communication solutions application. for non GST state taxes Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 IN00837433 ►Strengthened institutional capacity in office of the Commissioner of Taxes (CoT) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Inadequate audit Of the nine reports, CoT Report on institutional Core tax systems is implementing three assessment and administration that is, lack of system reports pertaining to capacity building has functions based institutional structure, been completed. Of strengthened audit selection and capacity building and the nine reports, CoT limited tax analytical trainings. is implementing three 5/15/2020 Page 7 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) capacity reports pertaining to institutional structure, capacity building and trainings. Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 Based on the study, CTD has created 23 new circles reorganizing existing 123 existing circles. Training Comments: on Service Taxation is delayed but 71 staff were trained on audit as master trainers. IN00837434 ►Enhanced services provided by Excise Department using e-Governance (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target solution The Excise Rules operationalized The technical evaluation 2016 have been in the Excise for bids for e-governance notified in the Official Department All procedures and system has been Gazette. Contract for with (a) eservices processes are manual in completed. Based on e-governance solution to Value the Excise Department; internal approvals, the has been awarded in taxpayers and (b) MIS Excise revenue INR 808 contract is likely to be Nov 2019 and for crore in 2015-2016 awarded in August 2019. development is in monitoring and progress. regulation; 80% increase in excise revenue over baseline Date 31-Mar-2016 12-Jul-2019 05-May-2020 31-Mar-2022 In the interim, the Excise department has implemented an online portal through which 100% transport Comments: permits are being issued electronically which will be transitioned to the new e-governance portal.. Performance-Based Conditions IN00837435 ►PBC 1 Enhanced controls in budget execution and reporting (Text, Intermediate Outcome, 7.50, 0.00%) At least 90% of excise and non-GST tax (administered by the COT) collected through the e- collection portal; and at least 80% payments made by the treasuries have been done Baseline Actual (Previous) Actual (Current) electronically GoA has taken decision The contract with the Processes for budget to scale up the FinAssam Systems Integrator for the 60% of the DDOs distribution, budget control, to a FMIS solution and FMIS solution is under have submitted bills and bill submission by the Value preparation of RfP to be finalization and is likely to electronically to the DDOs are manual; and no issued to the present be awarded by June 2020. treasuries using the decision support system for system integrator is in The Budget distribution FMIS. Finance Department progress and contract module from HoD to BCO 5/15/2020 Page 8 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) likely to be awarded by has been operationalized Oct 2019. With this and will be integrated with decision, Budget treasury system. All distribution module from transactions except for the HoD to BCO has been Works and Forest operationalized and Departments are online integrated with treasury and routed through FMIS. system, the DLI will be achieved. Date -- 12-Jul-2019 05-May-2020 -- Budget allotment and distribution module has been developed on existing FinAssam and integrated with Comments: CTMIS. GoA is in the process of taking a decision on the approach to implement FMIS. IN00837436 ►PBC 2 Public access to key budget execution reports (Yes/No, Intermediate Outcome, 3.50, 14.29%) At least 90% of excise and non-GST tax (administered by the COT) collected through the e- collection portal; and at least 80% payments made by the treasuries have been done Baseline Actual (Previous) Actual (Current) electronically Value No No No Yes Date -- 31-Mar-2019 05-May-2020 -- IN00837437 ►PBC 3 Increased e-collection and e-payments (Text, Intermediate Outcome, 3.00, 83.33%) At least 90% of excise and non-GST tax (administered by the COT) collected through the e- collection portal; and at least 80% payments made by the treasuries have been done Baseline Actual (Previous) Actual (Current) electronically Value E-collection for Excise NIL; e-collection portal During FY2019/20, At least 90% of for the CoT 35% by (eGRAS) has been rolled collections through the excise and non-GST volume for VAT and nil for out to both Excise and uniform online eGRAS tax administered by other taxes; and CoT and integration aggregated Rs. 4755 CoT collected fragmented systems and achieved with their crores. Collections in through the e- low base of e-payments respective portals. Excise Excise Department collection portal; and and non-GST taxes through eGRAS are more at least 90% of the collected through eGRAS than 80%. CTD is in the payments made by 5/15/2020 Page 9 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) during May and June process of migrating all the treasuries have 2019 is 90% of the total collections to e-GRAS and been done collectionse-Kuber now dis-continue its existing e- electronically. covers all Treasuries and collection applications and average 60% of the the transition is likely to Treasury payments were happen soon. made through e-Kuber during the period Nov 2018 to April 2019. Date -- 12-Jul-2019 05-May-2020 -- Comments: Excise Department has transitioned to e-GRAS while CoT is in progress pending resolution of some issues. IN00837438 ►PBC 4 Enhanced services provided by office of the Commissioner of Taxes (CoT) using e-Governance (Text, Intermediate Outcome, 5.50, 18.18%) At least 90% of excise and non-GST tax (administered by the COT) collected through the e- collection portal; and at least 80% payments made by the treasuries have been done Baseline Actual (Previous) Actual (Current) electronically Fragmented and outdated The contract for new IT IT applications; e-return application for CoT has The contract for new IT At least 90% filing at 15% for VAT; been signed in May 2019 application for CoT has assesses have filed ereturns and implementation is in Value been signed in May 2019 tax returns for all do not have in-built progress. The various and implementation is in non-GST taxes electronic scrutiny feature; utilities are being progress. online. No e-governance solutions developed in the new for non GST state taxes application. Date -- 12-Jul-2019 05-May-2020 -- Comments: GoA to take decision on award of contract or rebidding IN00837439 ►PBC 5 Enhanced services provided by Excise Department using e-Governance (Text, Intermediate Outcome, 5.00, 40.00%) Baseline Actual (Previous) Actual (Current) At least 90% of excise and non-GST tax (administered by the COT) collected through the e- collection portal; and at least 80% payments made by the treasuries have 5/15/2020 Page 10 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) been done electronically The technical evaluation for bids for e-governance The Excise Rules 2016 system has been have been notified in the completed. Based on Official Gazette. Contract internal approvals, the for e-governance solution The Excise All procedures and contract is likely to be has been awarded in Nov Revenue Collection processes are manual in awarded in August 2019. 2019 and development is has increased Value the Excise Department; In the interim, the Excise in progress. All transport by100% over the Excise revenue INR 808 department has permits are being issued revenue in financial crore in 2015-2016 implemented an online through an interim solution year 2015-16. portal through which which will be transitioned 100% transport permits to the new e-governance are being issued solution. electronically. Date -- 12-Jul-2019 05-May-2020 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P157198 IBRD-87650 Effective USD 35.00 35.00 0.00 7.64 27.36 22% 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 5/15/2020 Page 11 of 12 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) 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. 5/15/2020 Page 12 of 12