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: 4 | ARCHIVED on 06-Sep-2019 | ISR38108 | 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: 20-Apr-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; scale up of e-procurement; development and roll out of the common e-collection portal for GoA (e-GRAS); and making e-Payments through RBI portal e-Kuber. Contract award for the IT 9/6/2019 Page 1 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) application for Commercial Taxes has been completed and decision taken to scale up FinAssam into a more comprehensive FMIS solution by enhancing scope and functionalities and advancing the procurement of vendor for the Excise IT application. 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) empowerment of the Assam Society for Comprehensive Financial Management System (AS-CFMS) to implement project activities; (ii) cabinet approval of the procurement rules to support implementation of the Procurement Act approved in April 2017; and (iii) contract award for FMIS and Excise IT applications. 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 PDO Indicators by Objectives / Outcomes To contribute to improvement in predictablity and transparency in budget execution IN00730564 ►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 55.00 48.00 Date 31-Mar-2015 31-Mar-2018 31-Mar-2019 31-Mar-2022 IN00730596 ►Public access to key budget execution reports (Yes/No, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes 9/6/2019 Page 2 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Date 31-Mar-2016 31-Mar-2018 31-Mar-2019 31-Mar-2022 IN00730598 Public access to procurement contracts awarded (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 12.00 90.00 To contribute to improvement in efficiency in tax administration in Assam IN00730565 ►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 2.85 3.00 Date 31-Mar-2015 31-Mar-2018 31-Mar-2019 31-Mar-2022 IN00730597 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 0.89 0.80 Date 31-Mar-2015 31-Mar-2018 31-Mar-2019 31-Mar-2022 Intermediate Results Indicators by Components Strengthening Public Finance Institutional Capacity IN00730599 ►Enhanced capacity in Cash and Debt Management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cash and Debt Management Cash & Debt Unit Fragmented institutions Management Cell established; for Cash flow forecast on constituted and annual annual debt management; a weekly /monthly borrowing plan and borrowing Value absence of active cash basis has stabilized monthly cash flow informed by and debt management and error margin forecasts developed for realistic cashflow and reduced to around 5%. FY 2018-19 and updated forecasts; cash-flow forecasting weekly Debt Statistical Bulletin published. Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 31-Mar-2022 IN00730602 ►Strengthened public procurement framework and capacity building of officials (of which 5% are female) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Outdated procurement Draft Procurement Rules Contracting of UNDP Procurement Value rules; no SBDs; and no and first set of SBDs are for establishing State rules and SBD system for public ready and awaiting Procurement notified and 9/6/2019 Page 3 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) procurement training Cabinet approval for the Facilitation Cell published; rules. (SPFC) is underway. resolution of The updated draft procurement version of the grievances Procurement Rules disclosed has been resubmitted publicly; to the Legislative enhanced Department for procurement approval of changes pursuant to additional comments received from stakeholders. Following approval by the Legislative Dept, the Rules will be placed in the next Cabinet meeting for its approval. Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 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 IN00730604 ►Increased coverage of e-Procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target GO issued for mandatory e-Procurement for 226% increase in procurement above INR Enhanced tender value through 20 51% increase in e- coverage of e- e-procurement during Value lacs; e-Procurement procurement tender Procurement FY2018/19 over tender value in value over baseline (250% increase previous year 2015 2016 - INR over baseline) Fy2017/18 5,700 crores. Date 31-Mar-2016 31-Mar-2018 12-Jul-2018 31-Mar-2022 E-Procurement tender value in FY 2017-18 was Rs 8600 crores compared to baseline figure of Rs 5700 crores in FY 2015-16. E-Procurement tender value in FY 2018-19 increased to Rs. 28100 crores, an increase of over 200% over the previous year. This is contributed by shifting all E-Procurement to one Comments: portal as against use of multiple portal earlier. However full cycle of e-procurement functionalities leading to issue of Award of Contract (AoC) not being done through the system. IN00730606 ►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 Formal training needs capacity of the strategy Training Needs assessment has been Value GoA's finance and sporadic training on Assessment in progress deferred till the FMIS officials (2250 PFM contract is in place officials trained) Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 31-Mar-2022 While structured training on PFM based on a training needs assessment has been deferred, training on Comments: PPP, Data Analytics. 9/6/2019 Page 4 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Strengthening Expenditure and Revenue Information Systems IN00730600 ►Enhanced controls in budget execution and reporting (Text, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target GoA has taken decision to scale up existing FinAssam solution to a more comprehensive FMIS solution. A formal RFP GoA has automated the is to be issued to the budget allotment process Processes for budget present system Budget distribution by from the Finance Dept to distribution, budget integrator and contract HoDs and BCOs, BCO and DDO for FY control, and bill likely to be awarded by budget control by the 2018-19 by interface of Value submission by the DDOs Oct 2019. Treasury, and bill CTMIS and FinAssam as are manual; and no On finalization of the submission by the an interim measure, decision support system contract award, the DDOs pending decision on the for Finance Department Budget distribution automated; decision approach of module from HoD to implementing FMIS. BCO has been operationalized and integrated with treasury system, will be crystallized as a long term solution.. Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 31-Mar-2022 IN00730601 ►Increased e-collection and e-payments (Text, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target e-collection portal (eGRAS) has been rolled out to both Excise and CoT and integration achieved 100% of excise with their respective and non-GST portals. Excise and tax E-collection for Excise A common e-collection non-GST taxes administered by NIL; portal has been collected through CoT collected for the CoT 35% by developed with support eGRAS during May electronically; volume for VAT and nil from NIC and excise has and June 2019 is 90% Value and at least for been onboarded while of the total collections 90% of the other taxes; and onboarding of non-GST payments fragmented systems and taxes of CoT is in e-Kuber now covers all made low base of e-payments progress. Treasuries and electronically average 60% of the by the Treasury payments treasuries. were made through e- Kuber during the period Nov 2018 to April 2019. Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 31-Mar-2022 Besides, CoT and Excise Departments, additional departments i.e Forest, Secretariat Administration, General Administration have been on-boarded in e-GRAS for revenue collection. Comments: IN00730603 9/6/2019 Page 5 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) ►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 Budget Disclosures Enhanced Budget. These include enhanced in FY 2019- budget (i) budget at a glance 20 Budget and also disclosure to (highlights); include: citizens, (ii) an analytical (i) key fiscal indicators including Limited budget statement; Value (ii) changes in compliance disclosures (iii) information on accounting standards with the transfers to local bodies; and policies affecting disclosure (iv) report on actions fiscal indicators requirements of taken on the budget of (iii) borrowings and the Assam the previous year; and guarantees FRBM Act. (v) a children’s budget and a gender budget. Date 31-Mar-2016 31-Mar-2018 12-Jul-2018 31-Mar-2022 IN00730605 ►Enhanced services provided by office of the Commissioner of Taxes (CoT) using e-Governance (Text, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target Fragmented and outdated IT applications; e-return Enhanced The contract for new filing at 15% for VAT; taxpayer IT application for CoT ereturns Contract for new IT services has been signed in Value do not have in-built application for CoT yet to provided by May 2019 and electronic scrutiny be awarded. CoT for returns, implementation is in feature; obligations and progress. No e-governance communication solutions for non GST state taxes Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 31-Mar-2022 IN00730607 ►Strengthened institutional capacity in office of the Commissioner of Taxes (CoT) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Inadequate audit Report on institutional Of the nine reports, systems assessment and CoT is implementing Core tax that is, lack of system capacity-building needs three reports administration Value based for the COT has been pertaining to functions audit selection and completed and CoT has institutional structure, strengthened limited tax analytical prioritized some capacity building and capacity activities. trainings. Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 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 and first round of training is planned in end August 2019. IN00730608 ►Enhanced services provided by Excise Department using e-Governance (Text, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target Value All procedures and Excise Rules approved The technical solution processes are manual in by way of Gazette evaluation for bids for operationalized the Excise Department; Notification. e-governance system in the Excise 9/6/2019 Page 6 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) Excise revenue INR 808 The bid for on-boarding has been completed. Department crore in 2015-2016 the Systems Integrator Based on internal with (a) eservices for the Excise e- approvals, the contract to governance solution is in is likely to be awarded taxpayers and (b) MIS an advanced stage of in August 2019. for evaluation. monitoring and regulation; 80% increase in excise revenue over baseline Date 31-Mar-2016 13-Dec-2018 12-Jul-2019 31-Mar-2022 In the interim, the Excise department has implemented an online portal through which 100% transport Comments: permits are being issued electronically. Disbursement Linked Indicators IN00730609 ►DLI 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 to scale up the FinAssam to a FMIS solution and GoA has automated the preparation of RfP to be budget allotment process issued to the present Processes for budget from the Finance Dept to system integrator is in At least 75% of the distribution, budget control, BCO and DDO for FY progress and contract DDO's have and bill submission by the 2018-19 by interface of likely to be awarded by submitted bills Value DDOs are manual; and no CTMIS and FinAssam as Oct 2019. With this online to the decision support system for an interim measure, decision, Budget treasuries using the Finance Department pending decision on the distribution module from FMIS approach of HoD to BCO has been implementing FMIS. operationalized and integrated with treasury system, the DLI will be achieved. Date -- 13-Dec-2018 12-Jul-2019 -- 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. IN00730610 ►DLI 2 Public access to key budget execution reports (Yes/No, Intermediate Outcome, 3.50, 0.00%) At least 90% of excise and non- Baseline Actual (Previous) Actual (Current) GST tax 9/6/2019 Page 7 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) (administered by the COT) collected through the e- collection portal; and at least 80% payments made by the treasuries have been done electronically Value No No No Yes Date -- 13-Dec-2018 31-Mar-2019 -- IN00730611 ►DLI 3 Increased e-collection and e-payments (Text, Intermediate Outcome, 3.00, 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 e-collection portal (eGRAS) has been rolled out to both Excise and CoT and integration At least 90% of achieved with their excise and non-GST A common e-collection respective portals. Excise tax administered by E-collection for Excise NIL; portal has been and non-GST taxes CoT collected for the CoT 35% by developed with support collected through eGRAS through the e- volume for VAT and nil for from NIC and excise has Value during May and June 2019 collection portal; and other taxes; and been onboarded while is 90% of the total at least 90% of the fragmented systems and onboarding of non-GST collectionse-Kuber now payments made by low base of e-payments taxes of CoT is in covers all Treasuries and the treasuries have progress. average 60% of the been done Treasury payments were electronically. made through e-Kuber during the period Nov 2018 to April 2019. Date -- 13-Dec-2018 12-Jul-2019 -- Comments: Excise Department has transitioned to e-GRAS while CoT is in progress pending resolution of some issues. IN00730612 ►DLI 4 Enhanced services provided by office of the Commissioner of Taxes (CoT) using e-Governance (Text, Intermediate Outcome, 5.50, 0.00%) Baseline Actual (Previous) Actual (Current) At least 90% of excise and non- GST tax (administered by the COT) collected through the e- 9/6/2019 Page 8 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) collection portal; and at least 80% payments made by the treasuries have been done electronically Fragmented and outdated IT applications; e-return The contract for new IT filing at 15% for VAT; 100% of non-GST Contract for new IT application for CoT has ereturns tax returns for the Value application for CoT yet to been signed in May 2019 do not have in-built previous year are be awarded. and implementation is in electronic scrutiny feature; filed electronically. progress. No e-governance solutions for non GST state taxes Date -- 13-Dec-2018 12-Jul-2019 -- Comments: GoA to take decision on award of contract or rebidding IN00730613 ►DLI 5 Enhanced services provided by Excise Department using e-Governance (Text, Intermediate Outcome, 5.00, 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 The technical evaluation for bids for e-governance system has been Excise Rules approved completed. Based on by way of Gazette internal approvals, the The Excise All procedures and Notification. contract is likely to be Revenue Collection processes are manual in The bid for on-boarding awarded in August 2019. has increased Value the Excise Department; the Systems Integrator In the interim, the Excise by100% over the Excise revenue INR 808 for the Excise e- department has revenue in financial crore in 2015-2016 governance solution is in implemented an online year 2015-16. an advanced stage of portal through which 100% evaluation. transport permits are being issued electronically. Date -- 13-Dec-2018 12-Jul-2019 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed 9/6/2019 Page 9 of 10 The World Bank Implementation Status & Results Report Assam State Public Finance Institutional Reforms (ASPIRe) Project (P157198) P157198 IBRD-87650 Effective USD 35.00 35.00 0.00 5.14 29.86 15% 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. 9/6/2019 Page 10 of 10