On November 20, 2020 The Asian Development Bank (ADB) approved a $50 million (about Rs 370 crore)policy-based loan to help boost West Bengal’s Digital Platforms for Public Finance Reforms
i.To improve operational efficiencies and resource planning and management in West Bengal.
ii.To integrate the financial and information systems and expand the automation reforms in the state govt’s operation, which is expected to strengthen the delivery of public services and generate fiscal savings.
Points to be Noted
i.The loan will be increased by a $350,000 technical assistance grant to finance capacity building, to monitor IFMS(Integrated Financial Management System) reforms and strengthen the integration of social and gender aspects in reform areas.
ii.This program supports the objective of Indian Govt to make public services more accessible through interoperable eGovernment platforms
About the policy based loan:
i.The loan helps to boost the management of social protection benefits like pensions and Provident Funds(PFs), facility of e-payment for tax payment and revenue collection, and information management and service delivery, among others.
ii.This loan builds on the past ADB policy-based programs in 2012 and 2017, that supports the West Bengal govt on sustainable public financial management reforms.
ADB policy-based programs in 2012 and 2017
These programs have helped in the following ways:
- To develop and implement IFMS
- To establish successful eGovernance systems for improved revenue administration
- To undertake measures for expenditure rationalization
- To promote the involvement of the private sector in service delivery.
Recent Related News:
On September 25, 2020, ADB approved two loans worth USD 570 million (about Rs 4,200 crore) for urban sector projects in Rajasthan and Madhya Pradesh.
About Asian Development Bank (ADB):
Headquarters– Mandaluyong, Philippines
President– Masatsugu Asakawa
Membership– 68 countries(Including India)