Progress Report on Tranche Release
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Progress Report on Tranche Release Project Number: 49209-001 Loan Number: 3563 November 2019 India: Second West Bengal Development Finance Program (Second Tranche) Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB’s This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For Access to Information Policy. PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
CURRENCY EQUIVALENTS
(as of 2 October 2019)
Currency unit – Indian rupee/s (₹)
₹1.00 = $0.0141
$1.00 = ₹71.12
ABBREVIATIONS
ADB – Asian Development Bank
BRGF – Backward Regions Grant Fund
CBMS – comprehensive budget management system
CTS – computerized treasury system
DLLR – Department of Land and Land Reforms
DoH&FW – Department of Health and Family Welfare
ERS – early retirement scheme
GOWB – Government of West Bengal
GSDP – gross state domestic product
GST – goods and services tax
GSTN – goods and services tax network
IFMS – integrated financial management system
IT – information technology
MSME – micro, small, and medium enterprise
MTEF – medium-term expenditure framework
NISCO – National Iron and Steel Company Limited
NPT – Neo Pipes and Tubes Company Limited
OPD – outpatient department
PPP – public–private partnership
QR – quick response
ROR – record of rights
Rashtriya Swasthya Bima Yojana
RSBY –
(National Health Insurance Scheme)
SED – School Education Department
SMS – short message service
SOE – state-owned enterprise
STC – state transport corporation
SWL – Shalimar Works Limited
TA – technical assistance
TASF – Technical Assistance Special Fund
VGF – viability gap funding
VRS – voluntary retirement scheme
WBIIDF – West Bengal Investment and Infrastructure Development Fund
WBTC – West Bengal Transport CorporationNOTES
(i) The fiscal year (FY) of the Government of India and its agencies ends on 31 March.
“FY” before a calendar year denotes the year in which the fiscal year ends,
e.g., FY2019 ends on 31 March 2019.
(ii) In this report, “$” refers to United States dollars.
Vice-President Shixin Chen, Operations 1
Director General Hun Kim, South Asia Department (SARD)
Director Takeo Konishi, Public Management, Financial Sector, and Trade
Division, SARD
Team leader Navendu Karan, Senior Public Management Economist, SARD
Team members Mary Kimberly L. Baes, Senior Project Assistant, SARD
Adelita June P. Gacutan, Senior Operations Assistant, SARD
Ma. Kristina Hidalgo, Senior Financial Sector Officer, SARD
Jackie B. Moreno, Senior Project Assistant, SARD
Asghar Ali Syed, Principal Counsel, Office of the General Counsel
In preparing any country program or strategy, financing any project, or by making any designation
This
of orconsultant’s
referencereport
to adoes not necessarily
particular reflect
territory the views of ADB
or geographic areaor in
thethis
government concerned.
document, [For
the Asian
PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
Development Bank does not intend to make any judgments as to the legal or other status of any
territory or area.CONTENTS
Page
I. INTRODUCTION 1
II. RECENT MACROECONOMIC DEVELOPMENTS 2
III. STATUS OF PROGRAM IMPLEMENTATION 3
A. Output 1: Expenditure Rationalization Efforts Accelerated 3
B. Output 2: Facilitation of Private Investment Improved 11
C. Output 3: Revenue Administration Strengthened 12
IV. TECHNICAL ASSISTANCE GRANT 14
V. PROGRAM MONITORING 15
VI. PROGRAM ASSURANCES 15
VII. CONCLUSION 15
VIII. THE PRESIDENT’S RECOMMENDATION 17
APPENDIXES
1. Policy Matrix 18
2. Status of Tranche 2 Policy Actions 23
3. Assessment of the Achievements of the Design and Monitoring Framework
Performance Targets and Indicators 29
4. Chronology of Loan Review Missions 34
5. Program Loan Covenants 35
6. Analysis of Macroeconomic and Fiscal Developments 37I. INTRODUCTION
1. West Bengal recorded an average fiscal deficit of 4.3% of gross state domestic product
(GSDP) from FY2007 to FY2012—double the state-wide average of 2.1% during the same
period. 1 The fiscal stress was driven by the state’s low own-tax revenue effort and high
nondiscretionary expenditure on salaries, interest, and pensions. The own-tax revenue–GSDP
ratio in West Bengal averaged 4.4% over this period (FY2007–FY2012), well below Karnataka
and Tamil Nadu where it exceeded 8.0%. At the same time, West Bengal recorded very high
preemption of its own-revenue receipts, with the current expenditure peaking at 302.5% of own-
revenue receipts in FY2010, requiring large borrowings to finance these expenditures, and
trapping the state in a cycle of mounting revenue and fiscal deficits. This had negative
consequences on the state’s development agenda, as development financing (capital outlays)
remained very low (below 1% of GSDP), weakening the state’s growth prospects.
2. In view of the fiscally stressed situation of the Government of West Bengal (GOWB), the
Asian Development Bank (ADB) approved the West Bengal Development Finance Program in
2012. 2 The first program aimed to create the fiscal space to augment and sustain higher
development spending (public investment) in the state. Policy actions in the first program clearly
enhanced the revenue performance of the GOWB in a broad-based manner and improved the
state’s financial position. Public investment as a percentage of GSDP reached almost 1.3% in
FY2016 from 0.5% in FY2012, while the fiscal deficit reduced to 2.2% in FY2016 from 3.4% in
FY2012.
3. ADB’s Second West Bengal Development Finance Program was approved in 2017.3 The
program aimed to create sufficient fiscal space in West Bengal to augment and sustain capital
investment and improve economic and social infrastructure. It targeted improved private
investment by setting up the West Bengal Investment and Infrastructure Development Fund
(WBIIDF) to facilitate public–private partnerships (PPPs) through viability gap funding (VGF), with
emphasis on health and education projects. In addition, the GOWB set up a centralized single
window portal regarding statutory compliance requirements for micro, small, and medium
enterprises (MSMEs) to support ease of doing business. To rationalize expenditures, the program
targeted (i) voluntary retirement schemes (VRSs) and/or early retirement schemes (ERSs) for
select state-owned enterprises (SOEs), including state transport corporations (as part of the
continued implementation of the action plan on subsidy rationalization prepared under the first
program); (ii) settlement of liabilities for restructuring of inoperative or loss-making SOEs;4 (iii)
linking medium-term expenditure frameworks (MTEFs) initiated under the first program for health
and school education to the actual budget allocations for FY2019; 5 (iv) implementing the
1
Government of West Bengal (GOWB), Finance Department. 2017. Medium-Term Fiscal Policy Statement and Fiscal
Policy Strategy Statement for FY2017. Kolkata; and Government of West Bengal (GOWB), Finance Department.
(various years). budget publications. Kolkata; and Office of the Comptroller and Accountant General (various years).
Finance Accounts of West Bengal. Kolkata.
2 ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Policy-Based Loan
and Technical Assistance Grant to India for the West Bengal Development Finance Program. Manila.
3 ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Policy-Based Loan
and Technical Assistance Grant to India for the Second West Bengal Development Finance Program. Manila.
4 National Iron and Steel Company Limited (NISCO) and Neo Pipes and Tubes Limited (NPT).
5 An MTEF requires policymakers to look across sectors, programs, and projects to examine how public spending can
best serve national development objectives in the medium term. By imparting a medium-term perspective to
budgeting and taking into account the future fiscal costs of government policies and programs, an MTEF can fill
information gaps that allow politicians to renege on their commitments to implement affordable policies. Further, by
specifying an overall resource constraint, MTEFs rein in the political tendency to overcommit public resources (the2
remaining three modules of the integrated financial management system (IFMS); 6 and (v)
strengthening internal audit in the Finance Department. To augment the state’s finances by
mobilizing its own revenues, the program aimed at (i) improved tax monitoring by the Directorate
of Commercial Taxes; (ii) completion of preparatory steps for integration with the goods and
services tax network (GSTN); (iii) continued support to information technology (IT) systems in
strengthening the administration of the Excise Directorate; (iv) continued support to IT systems in
strengthening the administration of the Department of Land and Land Reforms (DLLR) and the
Directorate of Registration and Stamp Revenue to complete the digitization of legacy deed data
in both departments, and enable simultaneous mutation of land records on the registration of a
property;7 and (v) improved service delivery for taxpayers by setting up facilitation centers in the
selected registration offices.
4. With these objectives, ADB approved the policy-based program loan of $300 million in
October 2017 that was made effective on 22 November 2017. The program has two tranches of
$150 million each that provide budgetary support to the state government, with 11 policy actions
in tranche 1 and 14 in tranche 2 (Appendix 1). Tranche 1 was disbursed on 1 December 2017 to
the Government of India for onlending (full pass-through) to the state government on full
compliance with tranche 1 actions as part of the loan effectiveness.
5. Tranche 2 was scheduled for completion 22 months after tranche 1 in September 2019.
The tranche 2 actions were complied with by 30 September 2019 and a 2-month extension in
program closure has been requested to enable interdepartmental review and processing for
tranche release. The report outlines the progress achieved under tranche 2, the second and final
tranche of this program, including an update on the status of tranche 1 policy actions.
II. RECENT MACROECONOMIC DEVELOPMENTS
6. While India’s average gross domestic product growth rate approached 7.3% during
FY2015–FY2019,8 West Bengal’s GSDP grew at a significantly higher rate of about 8.5% during
the same period. On average, during FY2015–FY2019 (revised estimate), West Bengal’s own-
tax revenues were 5.4% of GSDP whereas current expenditures were much higher at about
14.5% of GSDP.9 The ratio of capital outlay to GSDP increased from 1.4% in FY2015 to 1.9% in
FY2018 and further to 2.1% in FY2019 (revised estimates). The state managed to contain the
fiscal deficit within 3% of GSDP during FY2016–FY2019. A detailed analysis of the
macroeconomic and fiscal developments is in Appendix 6.
common pool problem). A few studies suggest that fiscal discipline is stronger in many countries after the adoption
of MTEFs (see N. Biletska et al. 2013. Beyond the Annual Budget: Global Experience with Medium Term Expenditure
Frameworks. Washington, DC: World Bank).
6 Four of the seven modules were implemented under the first program. The three remaining modules are (i) the
electronic benefits transfer module of the IFMS (e-Pradhan), (ii) the centralized treasury system module of the IFMS
(e-CTS), and (iii) the centralized budget monitoring system.
7 Mutation is the change in title ownership from one person to another when a property is sold or transferred. By
mutating a property, the new owner obtains the property recorded in their name in the official land records.
8 The gross domestic product estimate for 2019 is the first advance estimate from Government of India, Central
Statistics Office. 2019. Press Note on First Advance Estimates of National Income 2018–19. 7 January.
9 Government of West Bengal, Finance Department. Medium-Term Fiscal Policy Statement and Fiscal Policy Strategy
Statement (various years). Calcutta; and Reserve Bank of India. 2019. State Finances: A Study of Budgets of 2019–
20. Mumbai. GSDP figures are nominal and taken at the 2011–12 base.3
III. STATUS OF PROGRAM IMPLEMENTATION
7. Status of tranche 1 policy actions. Tranche 1 policy actions have remained in effect
and their compliance status has not changed since program effectiveness. Tranche 1
comprised 11 policy actions. Four contributed to the acceleration of expenditure rationalization
efforts by (i) implementing VRSs to revive the financial health of public sector enterprises,
(ii) restructuring loss-making public sector units and settlement of their liabilities, (iii) preparing
MTEFs for the Department of Health and Family Welfare (DoH&FW) and School Education
Department (SED), and (iv) strengthening the IFMS through the implementation of the e-Pradhan
and e-computerized treasury system (CTS) modules (footnote 6). A policy action was directed at
the notification of a VGF policy and the creation of the WBIIDF to support private investment in
the state. To strengthen revenue administration, policy actions were directed at (i) implementing
an integrated tax monitoring system across at least 80% of the commercial tax circles, 10 (ii)
verifying permanent account numbers of dealers to improve goods and services tax (GST)
readiness, (iii) initiating quick-response (QR)-based hologram tagging on liquor bottles toward
effective management of liquor supply chain logistics, (iv) creating mobile units for the Excise
Directorate to provide mobile support to officials for effective enforcement and monitoring, (v)
finalizing the list of important registration offices where facilitation centers will be set up and
submitting a plan for such centers, and (vi) facilitating simultaneous mutation and registration
procedures in 100 registration offices. The compliance status of tranche 1 policy actions is in
Appendix 2.
8. Status of tranche 2 policy actions. Tranche 2 requires compliance with 14 policy actions.
The assessment of tranche 2 policy actions is presented in paras. 9–39.
A. Output 1: Expenditure Rationalization Efforts Accelerated
1. Policy action 12: Finance Department to ensure (i) disbursement of at least 70% of
the voluntary retirement scheme/early retirement scheme payments of the four
state transport corporations and Shalimar Works Limited for the targeted numbers
of beneficiaries indicated in the table below, and (ii) submission of gender-
disaggregated database for beneficiaries (partially complied with).
9. To improve efficiencies in operations, the Transport Department launched VRS for the
employees of four state-owned transport corporations—Calcutta State Transport Corporation,
Calcutta Tramways Company, South Bengal State Transport Corporation, and North Bengal State
Transport Corporation—and Shalimar Works Limited (SWL). It was targeted to disburse VRS to
at least 70% of the 3,025 employees entitled to it as on 1 April 2016 (or 2,118 employees) in
these SOEs, of whom 552 employees were targeted for VRS disbursement in tranche 1 and the
remaining 1,566 in tranche 2 (Table 1).
This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For
PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
10 For the purpose of commercial tax administration, West Bengal has been divided into 16 commercial tax circles,
each comprising a number of basic tax collection units called ‘charges.’4
Table 1: Targeted Number of Employees for Voluntary Retirement Scheme
Minimum Minimum
Proposed Minimum Proposed for Proposed for
Entitled to Proposed for for VRS Proposed for VRS and/or VRS and/or
VRS and/or VRS and/or and/or ERS VRS and/or ERS ERS
ERS as of 1 ERS Payments Payments in ERS Disbursement Disbursement
April 2016 in Tranche 1 Tranche 2 Disbursement in Tranche 1 in Tranche 2
SOE (A) (B) (C) (70% of A) (70% of B) (70% of C)
CSTC 1,000 338 662 700 237 463
CTC 600 0 600 420 0 420
SBSTC 100 80 20 70 56 14
NBSTC 1,300 370 930 910 259 651
SWL 25 0 25 18 0 18
Total 3,025 788 2,237 2,118 552 1,566
CSTC = Calcutta State Transport Corporation, CTC = Calcutta Tramways Company, ERS = early retirement scheme,
NBSTC = North Bengal State Transport Corporation, SBSTC = South Bengal State Transport Corporation,
SOE = state-owned enterprise, SWL = Shalimar Works Limited, VRS = voluntary retirement scheme.
Source: Asian Development Bank staff computations.
10. Achievement in tranche 1. As part of the tranche 1 actions, the state transport
department invited interest from eligible beneficiaries (notification no. 2424[3]-WT/TR/O/7B/25
2012 dated 20 June 2017). The age eligibility criterion for the scheme was that the employee
must be above 50 years but less than 59 years of age on 1 April 2017. Although a minimum of
552 employees were targeted for VRS disbursement, the target was overachieved and the VRS
was disbursed to 635 employees (confirmation no. 601 F.B. dated 8 July 2017). Table 2 presents
the breakup across SOEs.
Table 2: Effective Tranche 2 Target Accounting for Overachievement in Tranche 1
Minimum Number Minimum Number
of People of People Effective Tranche 2
Proposed for Number of Proposed for VRS Target Accounting
VRS and/or ERS Employees Excess over and/or ERS for
Disbursement in Disbursed VRS in Tranche 1 Disbursement in Overachievement
SOE Tranche 1 Tranche 1 Target Tranche 2 in Tranche 1
CSTC 237 269 32 463 431
CTC 0 0 0 420 420
SBSTC 56 97 41 14 (27)
NBSTC 259 269 10 651 641
SWL 0 0 0 18 18
Total 552 635 83 1,566 1,483
CSTC = Calcutta State Transport Corporation, CTC = Calcutta Tramways Company, ERS = early retirement scheme,
NBSTC = North Bengal State Transport Corporation, SBSTC = South Bengal State Transport Corporation,
SOE = state-owned enterprise, SWL = Shalimar Works Limited, VRS = voluntary retirement scheme.
Source: Asian Development Bank staff computations based on confirmation from the Government of West Bengal
Finance Department (No. 601 F.B. dated 8 July 2017).
11. Achievement in tranche 2. Adjusting for the overachievement of the target by
83 employees in tranche 1, the effective VRS disbursement target in tranche 2 was
1,483 employees (Table 2). Meanwhile, 909 employees retired in the regular way in FY2018 and
an additional 871 employees were due for retirement in FY2019. The total number of employees
in the four transport corporations reduced from 13,110 in FY2016 to 10,691 in FY2018. Given
these facts and anticipating the difficulty of securing the required number of eligible beneficiaries
from the selected corporations, the transport department undertook the following steps to
encourage participation and expand the scope of the VRS:5
(i) Reduction in the minimum age for voluntary retirement scheme eligibility.
The age eligibility criterion was expanded from 50–59 years to 45–59 years
(notification no. 4191[4]-WT TR/O/7B-25/2012 dated 30 August 2018).
(ii) Extension of voluntary retirement scheme coverage. The scheme was
extended to West Bengal Transport Corporation (WBTCWBTC), in addition to
the four transport corporations and SWL considered earlier.
Multiple rounds of voluntary retirement scheme offered. The department
decided to offer multiple rounds of VRSs to ensure the widest coverage and
opportunities to employees.
12. The state transport department issued notification no. 5529(4)-WT/TR/O/7B-25/2012 (Pt1)
dated 29 November 2018 toward the implementation of a VRS for employees of the four state
transport corporations, SWL, and WBTCWBTC (VRS Round 2). Although 515 employees were
considered, in this round, 512 employees were finally disbursed VRS payments. The scheme was
relaunched in January 2019 (VRS Round 3) and 182 employees opted for VRS in this round by
the due date of 12 February 2019.11 In order to encourage more participation, the deadline to
submit applications was later extended to 7 March 2019 (VRS Round 4). An additional 39
employees applied for the VRS after the date extension with a total of 221 employees in rounds
3 and 4 combined. These employees have been paid 80% of the VRS amount while the remaining
20% will be paid within three months or by 31 December 2019. Therefore, 80% of 221 (or 177
employees) can be considered as the effective achievement. Thus, while 733 VRS applicants
were considered for VRS disbursement in tranche 2 but the effective achievement is 689 against
the tranche 2 target of 1,483, a shortfall of 794.12 Table 3 presents the final VRS disbursements
after four rounds of the scheme, including the gender disaggregated data of beneficiaries.
Table 3: Voluntary Retirement Scheme Disbursement in Rounds 2–4 (Tranche 2)
(number of people)
Number of Effective Total Gender
Number of Employees Disbursemen Number of Disaggregation of
Employees Considered t in Rounds 3 Employees Employees
Effective Disbursed for VRS in and 4 by Considered Considered for
Tranche 2 VRS in Rounds 3 September for VRS in VRS in Tranche 2
SOE Target Round 2 and 4 2019 Tranche 2 Male Female
(A) (B) (C) (D)=80%*(C) (E)=(B)+(C)
CSTC 431 183 103 82 286 280 6
CTC 420 63 36 29 99 96 3
SBSTC (27) 11 30 24 41 40 1
NBSTC 641 229 42 33 271 265 6
SWL 18 1 1 1 2 2 0
WBTC 0 25 9 7 34 34 0
Total 1,483 512 221 177 733 718 15
( ) = negative, CSTC = Calcutta State Transport Corporation, CTC = Calcutta Tramways Company, NBSTC = North
Bengal State Transport Corporation, SBSTC = South Bengal State Transport Corporation, SOE = state-owned
enterprise, SWL = Shalimar Works Limited, VRS = voluntary retirement scheme, WBTC = West Bengal Transport
Corporation.
Source: Voluntary retirement scheme-related certifications by the Government of West Bengal Transport Department.
13. There were a number of regular retirements during the program period. Employees who
retired in FY2019
This consultant’s (891does
report retirees) were lessreflect
not necessarily than the
59 views
yearsofofADB
ageoronthe
1 government
April 2017 (the cutoff date
concerned. [For
PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
11 Notification no. 259[4]-WT/TR/O/7B-25/2012 [Pt. 1] dated 17 January 2019.
12
If WBTC is excluded since it was not part of the SOEs originally targeted, the shortfall is 803 employees.6
for age eligibility in the first round) and were, therefore, eligible for the VRS in the first round but
chose not to opt for the scheme/s.13 If these VRS-eligible employees are also considered, the
total reduction in the number of eligible employees under the second tranche is 1,624 (733 + 891),
which is higher than the tranche 2 target of 1,483; and the total reduction under the program is
2,259 (635+733+891), which exceeds the total target of 2,118 employees under the program
(Table 4). Since more employees have retired in FY2020 to date, the total achievement will be
even higher.
Table 4: Targets and Achievements for Voluntary Retirement Scheme Disbursement
(number of employees)
Eligible
Beneficiaries Eligible
Retired Targeted Beneficiaries
During the Retirement Retired Targeted
VRS VRS Retired Recruited Second under the During the Retirement
Beneficiaries Beneficiaries FY FY2017– Tranche Second Program under the
SOE in Tranche 1 in Tranche 2 2019 FY2019 Period Tranche Period Program
CSTC 269 286 296 0 582 431 851 700
CTC 0 99 354 0 453 420 453 420
SBSTC 97 41 61 0 102 (27) 199 70
NBSTC 269 271 154 0 425 641 694 910
SWL 0 2 0 0 2 18 2 18
WBTC 0 34 20 0 54 0 54 0
Total 635 733 885 0 1,618 1,483 2,253 2,118
( ) = negative, CSTC = Calcutta State Transport Corporation, CTC = Calcutta Tramways Company, NBSTC = North Bengal State Transport
Corporation, SOE = state-owned enterprise, SBSTC = South Bengal State Transport Corporation, SWL = Shalimar Works Limited,
VRS = voluntary retirement scheme, WBTC = West Bengal Transport Corporation.
Source: Government of West Bengal, Transport Department.
Table 5: Number of Employees and Retirements in Targeted State-Owned Corporations
(FY2016 to date)
No. of Size of Running
Employees Number of Permanent Employees Fleet No. of Routes
as of 1 April On the
2016 Retired Recruited Payroll (no.)
FY FY FY 31 March FY FY FY FY
SOE FY2016 2017 2018 2019 FY 2019 2019 2016 2019 2016 2019
CSTC 4,177 310 289 296 0 2,869 813 880 117 137
CTC 4,851 307 329 354 0 3,814 225 460 74 154
SBSTC 1,882 80 83 61 0 1,564 465 721 191 324
NBSTC 2,083 185 199 154 0 1,040 719 791 235 250
SWL 117 4 9 6 0 95 - - - -
Subtotal 13,110 886 909 871 0 9,382 2,222 2,852 623 865
WBTC 392 16 10 20 0 385 150 217 26 41
Total 13,502 902 919 891 0 9,767 2,372 3,069 643 906
CSTC = Calcutta State Transport Corporation, CTC = Calcutta Tramways Company, NBSTC = North Bengal State Transport
Corporation, No. = number, SBSTC = South Bengal State Transport Corporation, SOE = state-owned enterprise, SWL =
Shalimar Works Limited, WBTC = West Bengal State Transport Corporation.
Source: Government of West Bengal, Transport Department.
14. The policy action has been partially complied with. A number of employees retired
on attaining the regular retirement age of 60 during the period FY2017–FY2019. If we consider
these employees, who were eligible for VRS but did not opt for the scheme and took regular
13
The 919 employees who retired in the regular way in FY2018 were eligible for VRS in FY2017, before the program
approval in 2017. That is why these employees have not been included in the calculation of total reduction under the
program.7
retirement instead, the overall reduction in employee strength will exceed the target. The
following points have to be considered to ascertain compliance with the policy action:
(i) The objective of the policy action on the VRS was to improve operational efficiency
in transport corporations—that objective has been satisfactorily achieved. Since
the date when minimum retirement target was set based on employee strength on
1 April 2016, 2,712 permanent employees have retired in regular course while no
additional regular employees have been recruited in the selected SOEs (Table 5).
As a cumulative effect of the VRS, regular retirements, and non-recruitment of new
permanent staff, the total number of employees in the five transport SOEs and
SWL fell by almost one-third from about 13,502 in FY2016 to 9,767 employees in
FY2019, while the total fleet size (number of vehicles) increased from 2,372 to
3,069 during the same period. Operational efficiency has improved significantly—
the ratio of permanent employees per running fleet reduced from 5.7 in FY2016 to
3.2 in FY2019 (including casual employees, the ratio decreased from 7.2 to 4.9),
while the number of permanent employees per fleet route halved from 21.0 in
FY2016 to 10.8 in FY2019 (the number of fleet routes increased 40% from 643 to
906 during the same period).
(ii) A total of 3,025 eligible employees were identified on 1 April 2016 and the
program assumed that most would opt for the VRS. The target of disbursing VRS
benefits to at least 70% of 3,025 eligible employees was set accordingly. The
program was approved in October 2017, almost 18 months after the target was
set. Meanwhile, a number of eligible employees retired and the scope for
voluntary acceptance was reduced, as evident from the declining numbers in
successive launches of the scheme—the number of VRS applicants decreased
from 635 in round 1 to 512 in round 2, 182 in round 3, and 39 in round 4—implying
that the scope for further voluntary interest in the scheme has been exhausted.
(iii) The state government gave ample opportunity for employees to participate in the
scheme. The program comprised three rounds of the VRS in the second tranche,
and four rounds overall.
(iv) The state government’s control over the VRS outputs was limited because the
scheme was voluntary and not intended to be compulsory.
(v) These SOEs have not recruited any new staff on the payroll, evidencing that the
state government did not dilute this action by recruiting additional employees.
(vi) Gender disaggregated data of VRS beneficiaries in the second tranche has been
submitted as required under the policy action.
2. Policy Action 13: Finance Department to ensure that at least 90% of the financial
liabilities of Neo Pipes and Tubes Limited and National Iron and Steel Company
Limited, amounting to ₹462.13 crores (₹4.62 billion), have been completely settled
(complied with).
15. The GOWB announced the decision to settle at least 90% of the outstanding liabilities to
the GOWB of Neo Pipes and Tubes Limited (NPT) and the National Iron and Steel Company
Limited (NISCO) totaling ₹4.62 billion to prevent further accumulation of liabilities in these loss-
making enterprises. NPT’s liability totaling ₹1.33 billion and NISCO’s liability totaling ₹3.45 billion
were settled. The total settlement totaling ₹4.79 billion exceeded the initial target of ₹4.62 billion
and the action is fully complied with.14
This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For
PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
14 The government order reference is No. 187-(Sanction) IC&E/PE&IR/4L-01/2018 dated 25 January 2019 for the NPT
settlement and No. 186-(Sanction)-IC&E/PE&IR/4L-01/2018 dated 25 January 2019 for the NISCO settlement.8
3. Policy Action 14: Finance Department to (i) issue a report on the actions taken with
respect to the budget allocations for FY2019, based on the medium-term
expenditure framework, for the Department of Health and Family Welfare and the
School Education Department; and ensure completion of the activities covered in
the circular, including those indicated in the table below; and (ii) submit gender
impact assessment reports for FY2019 budget allocations for the two major
programs and/or schemes in each of the Department of Health and Family Welfare
and the School Education Department (complied with).
16. In compliance with the policy action, the Finance Department has (i) issued a report of
acceptable quality on the actions taken with respect to the budget allocations for FY2019, based
on the MTEF, for the DoH&FW and SED; (ii) completed the activities covered in the circular; and
(iii) submitted gender impact assessment reports of acceptable quality for the FY2019–FY2023
budget allocations for two major programs each in the DoH&FW and SED.
17. An MTEF enables improved fiscal discipline by aligning budgetary resources over the
medium term with the respective departments’ strategic priorities. The GOWB is among the
pioneering states for adopting MTEFs for the DOH&FW and SED and linking them with the budget
for FY2019.
Table 6: Activities to be Included in the Medium-Term Expenditure Framework,
FY2019
Activities Tranche 1 Tranche 2
Upgrading of elementary schools to secondary 100 schools 100 schools
schools, with an objective of closer access to
education
Upgrading of secondary schools to higher secondary 150 schools 150 schools
schools, with an objective of closer access to
education
Starting of OPD service in newly established BRGF 19 hospitals 15 hospitals
super specialty hospitals
RSBY health insurance coverage Additional 100% premium payment
coverage for (for at least 95% of the
100,000 families beneficiaries registered
under RSBY)
BRGF = Backward Regions Grant Fund, OPD = outpatient department, RSBY = Rashtriya Swasthya Bima Yojana
(National Health Insurance Scheme).
ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Policy-Based Loan and
Technical Assistance Grant to India for the Second West Bengal Development Finance Program. Manila.
18. Lower gross enrollment at secondary school in West Bengal compared with elementary
school is an impediment to the universalization of secondary education. The student–classroom
ratio also needs improvement to ensure lower dropout rates. School upgrading targeted under
the program was aimed at improving education quality, access, and enrollment.
19. The Finance Department’s circular to link budget allocations for FY2019 with the MTEF
included (i) upgrading 200 schools from elementary to secondary, and (ii) upgrading 300 schools
from secondary to higher secondary. Accordingly, 200 schools have been upgraded from
elementary to secondary, and 300 schools from secondary to higher secondary. The allocations
for the two school upgrading schemes are provisioned under the capital expenditure budget of
SED in FY2019 (budget estimate). 15 The budget allocation for these schemes in FY2019
15 This is included under the major head 4202 of the budget classification system.9
(₹4 billion) is 37.5% higher than the revised estimate in FY2018 (₹2.5 billion). The details are
presented in Table 7. The significant increase in budget allocation is attributed to the increased
focus on the universalization of education at all levels. SED also aims to achieve a 100% gross
enrollment rate for both secondary and higher secondary education in the medium term.
Table 7: Budget Allocation According to Medium-Term Expenditure Framework
Priorities for School Education Department
Scheme Name FY2018 FY2019
Upgrading of 200 schools from elementary to secondary 1.00 1.60
Upgrading of 300 schools from secondary to higher secondary 1.50 2.40
Total 2.50 4.00
Source: Government of West Bengal. 2019. Budget Publication 14- Detailed Demand for Grants for 2018-2019. Kolkata.
pp. 316-317.
20. Incorporation of medium-term expenditure framework elements in FY2019 budget
for Department of Health and Family Welfare. The objective of the National Health Insurance
Scheme (RSBY) was to protect families below the poverty line from financial liabilities arising from
health shocks that involve hospitalization. The Government of India and the GOWB shared the
premium for the beneficiaries enrolled in the scheme at a 75:25 ratio. The RSBY was subsumed
within Ayushman Bharat Yojana (Longevity India Scheme) of the central government after its
launch in September 2018. The state government health insurance scheme, Swasthya Sathi, was
made effective from 1 February 2017 and the RSBY was discontinued from FY2019 after the
transition to the new scheme was completed. While the RSBY mainly covered the population
below the poverty line, Swasthya Sathi included RSBY beneficiaries and expanded the coverage
to other deprived categories under the socioeconomic caste census deprivation criteria, families
of self-help group members and other social workers, the civil volunteer force, civil defense
volunteers, and certain categories of contractual employees. The coverage, therefore, expanded
from 6.3 million families under the RSBY to 15.1 million families under Swasthya Sathi (as of April
2019)—far beyond the targeted 0.1 million additional beneficiaries. 16 The entire insurance
premium under Swasthya Sathi is borne by the state government, which has been paying 100%
of the premium for all beneficiaries since the scheme’s inception.17 Since Swasthya Sathi covers
RSBY beneficiaries and other deprived categories, the requirement of 100% premium payments
for a minimum of 95% of RSBY beneficiaries is therefore satisfied.
21. The new Backward Regions Grant Fund (BRGF) super specialty hospitals were
established across the state to ensure the availability of quality health care services. Outpatient
department (OPD) services were included in the BRGF super specialty hospitals to enable
patients’ access to medical consultations and other allied services besides super specialty
services. Against the program target of starting OPD services in 34 BRGF hospitals, 41 super
specialty hospitals have started functioning throughout the state, with active OPD services.18
These hospitals are well equipped with state-of-the-art facilities.
22. The two schemes form part of the medical and public health expenditure of the DoH&FW.19
The allocation totaled ₹983 million for 2018–2019 (budget estimate).
16 Government of West Bengal, State Nodal Agency, Swasthya Sathi. Swasthya Sathi Report. April 2019. Kolkata; and
http://www.rsby.gov.in/statewise.aspx?state=15.
17 The expenditure under Swasthya Sathi was ₹5.5 billion in FY2016–2017 and ₹4.2 billion in FY2017–2018.
This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For
Government of West Bengal, Finance Department. Budget Publication No. 17- Detailed Demand for Grants for 2019–
PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
2020. Kolkata. p 102.
18
The list of super specialty hospitals is in Government of West Bengal, State Bureau of Health Intelligence, Directorate
of Health Services. 2018. Directory of Medical Institutions West Bengal (as on 31.03.2018). Kolkata. pp. 241–243.
19 This is included under the major head 2210 of the budget classification system.10
Table 8: Budget Allocation According to Medium-Term Expenditure Framework
Priorities for the Department of Health and Family Welfare
(₹ million)
2017–2018 2018–2019
Scheme Name (Rs million) (Rs million)
1 Starting of OPD service in super speciality hospitals - 200
2 RSBY (premium payment) - 100
3 Swasthya Sathi 4200 483
( - ) = date not available, OPD = outpatient department, RSBY = Rashtriya Swasthya Bima Yojana.
Source: Budget Publication 17, Government of West Bengal, 2017–2018 and 2018–2019.
23. Gender impact assessment. In the original program design, it was planned to conduct
gender impact assessment for (i) Rashtriya Swasthya Bima Yoina; and (ii) Janani Suraksha
Yojana in DoH&FW; and (iii) Drinking Water and Sanitation project, and (iv) Sarva Shiksha
Abhiyan in the School Education Department. While all important government programs in the
two sectors have been considered for MTEF preparation, the gender impact assessment has
been carried out for the four programs targeted for specific budget allocation under the program
(school upgradation, OPD services, and health insurance).
24. Strong evidence shows that high-quality infrastructure facilitates better instruction,
improves student outcomes, and reduces dropout rates, among other benefits. Female students,
in particular, tend to drop out because of the considerable distance from their homes to the places
of education, and lack of proper toilet facilities at school. Upgrading existing schools to
accommodate a higher level of classes will reduce school dropout rates because female students
can continue their education within the existing schools as they graduate to higher classes. The
gender-responsive MTEF for SED is expected to benefit 5,082 females annually during FY2020-
FY2023 by upgrading elementary schools to secondary school, or about 1.9 % of the estimated
271,680 females enrolled in the schools considered for upgrading. More than 75,148 females, or
about 11.5% of the estimated 654,618 females enrolled in the schools considered for upgrading
from secondary schools to higher secondary schools will benefit annually during the same period.
About 62.3% of female students are expected to receive access to better sanitation facilities, by
ensuring at least one toilet for every 100 females. More than 100,000 females are expected to
receive IT training, with the availability of computer rooms. Access to drinking water facilities and
electricity in schools is also expected to benefit the female students.
25. The gender-responsive MTEF for the DoH&FW aims at providing better health care for
women. The OPD services in the super specialty hospitals in the state are expected to benefit
around 6.5–7.0 million females annually. Insurance coverage under Swasthya Sathi is expected
to benefit more than 13.5 million women, which is about 27% of the projected 50 million female
population in FY2023. Further, increased expenditure on drugs is expected to benefit more than
800,000 pregnant women by FY2023.
4. Policy Action 15: Finance Department to fully operationalize centralized budget
monitoring system (complied with).
26. The IFMS is an e-governance initiative of the GOWB’s Finance Department for effective,
accountable, and transparent management of public finances and improved service delivery. ADB
has supported IFMS development under the first program and this program, with an integrated
module-based structure for interface with relevant stakeholder departments and agencies. Four
modules of the IFMS were operationalized under the first program and the second program aimed11
at operationalizing three other modules.20 Two of these—the e-CTS, and e-Pradhan for direct
payment of benefits to beneficiaries—were operationalized before loan effectiveness. The
remaining module, the centralized budget monitoring system (CBMS), was made operational in
tranche 2. The CBMS module of the IFMS comprises four sub-modules: (i) budget estimation for
all line departments, (ii) fund flow management for the online capture of clearance memos from
the Reserve Bank of India, (iii) scheme management to create a new scheme head and to serve
as the repository of all related information, and (iv) electronic treasury accounts reporting to the
Office of the Accountant General. Finance Department has submitted a status report of
acceptable quality on the operationalization of the three IFMS modules. The policy action has
been fully completed.
5. Policy Action 16: Finance Department to operationalize new risk-based internal
audit procedures and submit a report on three cases wherein these new procedures
have been fully implemented (complied with).
27. Finance Department has prepared and approved a risk based internal audit manual, 2018.
The manual defines the roles and responsibilities of internal audit teams and clarifies the common
procedures to be followed and formats to be used for reporting. It is intended to standardize the
internal audit procedures, thereby improving the efficiency and effectiveness of internal auditors.
Three internal audit cases have been completed based on the procedures specified under the
new manual. The policy action has been fully completed.
6. Policy Action 17: Finance Department to ensure that capital outlay to gross state
domestic product ratio is not less than 1.5% (revised estimate) for FY2018 and 1.7%
(budget estimate) for FY2019 (complied with).
28. The capital outlay as a percentage of the GSDP was 2.1% in FY2018 (revised estimate)
and 2.2% in FY2019 (budget estimate), significantly exceeding the targets under the program.
Since further data updates are now available, the actual capital outlay–GSDP ratio was 1.9% in
FY2018 and 2.1% in FY2019 (revised estimate), higher than the targets and a significant increase
from 0.8% in FY2013. The policy action is fully complied with.
B. Output 2: Facilitation of Private Investment Improved
7. Policy Action 18: Finance Department to disburse at least 60% of the viability gap
funding corpus and submit a detailed status report on the same (complied with).
29. Under tranche 1, the WBIIDF was created under a cabinet order to provide VGF to state
government projects taken up under PPP.21 Some ₹3 billion was transferred to the fund as VGF
corpus.22 Under tranche 2, disbursement of at least 60% of ₹3 billion in VGF (or ₹1.8 billion) is to
be achieved. Although not a policy action requirement, the VGF support under the program was
intended to focus on health and education projects. In consultation with ADB, therefore, the state
government decided to utilize the WBIIDF to provide financial support to health diagnostic centers
run in PPP mode in all government hospitals across the state. These centers provide the following
citizen services free of cost: (i) digital x-ray services, (ii) CT-scan services, (iii) MRI services,
(iv) dialysis services, and (v) audio-vestibular clinics. The above facilities have been planned such
This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For
20
The four modules operationalized during the first program were (i) e-billing for drawing (withdrawal) and disbursement
PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
automation, (ii) a human resources management system for payroll and other human resources matters, (iii) e-Bantan
for the budget–treasury linkage, and (iv) the government revenue receipts portal system.
21 Cabinet memo no. 622-F.B. dated 16 August 2016.
22 Order Reference: U.O. no. 1936 dated 5 October 2016.12
that patients located anywhere in the state would not have to travel more than 50 kilometers to
avail of quality diagnostic services. These projects have been implemented in PPP mode under
two types of arrangements: (i) establish, operate, and maintain; and (ii) operate and maintain. The
private partner is required to provide free diagnostic services to patients undergoing treatment at
the government hospital. The private partner can, however, charge market rates from private
cases from outside the government hospital. The private partner is required to deposit 20% of its
gross revenues with the concessioning authority, Rogi Kalyan Samiti (RKS) of the hospital, on a
monthly basis, which RKS utilizes to service the government hospital patients. Any viability gap
over and above is provided by WBIIDF, and funds from the central government’s National Health
Mission scheme. DOH&FW pre-notifies the service fee rates under the concession and the private
partner raises bills to RKS on a quarterly basis.
30. The implementation of free diagnostic and treatment services in West Bengal has
improved the access of the poor to otherwise unaffordable but essential diagnostic infrastructure
and services. These services were previously only offered free to the population below the poverty
line. However, these being essential in nature, GOWB has extended these services to any patient
visiting a government hospital.
31. To conclude, the policy action targeted the disbursement of minimum ₹1.80 billion (60%
of the ₹3 billion WBIIDF fund allocation). The actual disbursement is ₹1.84 billion (61.3% of the
WBIIDF VGF corpus) and the action is fully complied with. Moreover, the amount was disbursed
for a project in the health sector, which was the program emphasis, in alignment with ADB’s VGF
Guidance Memo issued by the Office of Public-Private Partnership (OPPP) in May 2019 and the
Government of India’s policy on VGF. 23
8. Policy Action 19: Government of West Bengal to operationalize a system of single-
point contact for important statutory compliance requirements for micro, small, and
medium enterprises (complied with).
32. The GOWB has operationalized a web-based single-window service (Silpa Sathi), which
serves as a digital gateway for providing the necessary statutory compliance under the applicable
state government acts, rules, policies, and schemes. Investors can obtain the certificates and
licenses required for setting up and operating business in West Bengal in a smooth and time-
bound manner, eliminating the need to visit any government department or office physically. The
action is, therefore, completed. In addition, the GOWB’s Department of MSMEs has set up
25 MSME facilitation centers to provide hand-holding support to entrepreneurs, with one
facilitation center in each district.24
C. Output 3: Revenue Administration Strengthened
9. Policy Action 20: Finance Department to complete the integration of the tax
monitoring systems in the remaining 20% of commercial taxes circles of the state
through the integrated tax monitoring system (complied with).
23 The Office of Public-Private Partnership (OPPP) memo defines post-construction phase support as the government
providing either funding for shadow-tariffs (e.g. for roads) and topping-up tariffs to be paid by some or all consumers
to reduce demand risk borne by the project company (e.g. for water or electricity); or minimum revenue guarantees,
during the operations of the PPP project. The Government of India’s policy for VGF defines it as a one-time or
deferred grant with the objective of making a project commercially viable. Government of India, Ministry of Finance,
Department of Economic Affairs. 2013. Scheme and Guidelines for Financial Support to Public Private Partnerships
in Infrastructure. Delhi.
24 West Bengal had 23 districts in 2019.13
33. The Directorate of Commercial Taxes developed a comprehensive software application
package compliant with commercial taxes in association with the National Informatics Centre,
Kolkata as an integrated tax monitoring system. The software includes a number of e-services,
including payment, recovery, and appeal. The circle offices have been empowered to control and
facilitate the assessment, appeal, and tax recovery processes of the charges under their
jurisdiction, making tax monitoring and administration more efficient. The software has helped
improve revenue administration by making data and reports more accessible to administrative
officials and decision makers for use in data mining and business intelligence tools. The system
is now functional across all the 16 circle offices in the state, including three circles (Berhampore,
Raigunge, and Asansol) that were integrated in tranche 2. The action is fully complied with.
10. Policy Action 21: Excise Directorate to fully implement the QR-code based
holograms along with short-messaging service-based detection facility on 100% of
liquor bottles across the state (complied with).
34. The GOWB’s Excise Directorate has undertaken QR-code based hologram tagging of all
individual liquor bottles produced or imported within the state, including Indian-made foreign liquor,
country spirit, and beer.25 The QR-code based hologram tagging is an initiative to improve the
system of supply chain management and to establish a mark of authenticity on the bottled liquor,
under the directorate’s e-Abgari system.26 The 3D barcodes are affixed on liquor bottles, encoding
data such as the brand name, batch number, date of manufacture, and maximum retail price. To
verify the authenticity of the liquor, the barcode can be scanned using devices such as smart
phones and tablets or through a short message service (SMS)-based system. This initiative is
expected to assist in regulating the sale of liquor in a safe manner, preventing the sale of illicit
and/or counterfeit liquor, and increasing the revenue of the GOWB.
11. Policy Action 22: Directorate of Registration to complete digitalization of old
property record data in all registration offices in the state (complied with).
35. Digitalization of old property records has been completed across all the 257 registration
offices that had legacy data. More than 24 million property deeds have been scanned and meta
data entry completed for 100% of the deeds to enable quick searches based on key identification
criteria. All registration offices have been computerized to enable online property registration.
New property registrations, therefore, follow digital processes. The action is complied with.
12. Policy Action 23: Directorate of Registration to set up facilitation centers in the
50 important registration offices (complied with).
36. The directorate has successfully set up 131 facilitation centers as of 3 December 2018 for
improving the quality of service provision. These centers provide services such as assessment
slip generation, e-challan (payment slip) generation, and information regarding payment status.
25 Country spirit or country liquor is defined as spirit or plain spirit of a strength lower than forty degrees over proof
manunfactured with the previous approval of the Commissioner of Excise, and which is issued for consumption as
potable alcoholic liquor and is not deemed to be foreign liquor (Government of West Bengal. Department of
Excise.The Kolkata Gazette Extraordinary. 15 November 2010. Kolkata.
26 eAbgari is a software application developed by the Excise Directorate for ease of operations. The system provides
This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For
the following key facilities: (i) details of the services available, including for grant of licenses; (ii) label registration of
PPTAs:
packagedAlso, all ofliquor
foreign the views expressed
and country herein
spirits; may notofbeimport
(iii) issuance incorporated into
permits for the proposed
alcohol; (iv) stockproject’s
inventorydesign.]
system;
(v) issuance of transport passes; (vi) issuance of holograms; (vii) approval of indents (procurement requests) by
retailers; and (viii) grievance redressal.14
Information boards in vernacular detailing the instructions for each service are also displayed.
Services at these facilitation centers have been outsourced to third-party vendors.
13. Policy Action 24: Land and Land Reforms Department to complete digitization of
the old land records in all block land and land reform offices in the state (complied
with).
37. A web-based land records system application (e-Bhuchitra) was made operational in
December 2014 with selected block offices and by June 2018, data pertaining to all 346 block
offices across the state was included under e-Bhuchitra.27 Digitization of all old land records has
been completed in all 346 block land and land reform offices of the state. Land records in West
Bengal have been divided into 42,151 revenue villages or mouzas, each containing a large
number of record of rights (RORs). The total number of RORs is dynamic and changes with
simultaneous record updates. An ROR is an extract from the land records that registers and
contains complete information on land or property and the history of landholders. All RORs in the
state are available and issued online. Thus, all legacy data for land ownership is available in a
digitized format on the database and website of the DLLR. The GOWB has also undertaken the
process of digitization of the mouzas, along with RORs linked to the mouza. In a few mouzas,
some of the map sheets were damaged and had to be recreated by draftspeople and technical
assistants.
14. Policy Action 25: Directorate of Registration to implement the system of
simultaneous registration and mutation in all registration offices in the state with
the corresponding land offices (complied with).
38. The GOWB has established a process of simultaneous registration and mutation to
encourage the mutation of land in all registration offices of the state.28 The database for the DLLR
has been interfaced with the registration database as part of the integration of land and property
records under the Digital India Land Records Modernization Programme.29 The mutation happens
electronically, with no further action needed by the buyer or seller in cases where the proposed
seller details match those in the land record system. In cases of mismatch, a framework has been
identified to resolve the issue and complete mutation in 30 days.
39. The mutation fee is collected along with the stamp duty and registration fee at the time of
registration to initiate the process of simultaneous mutation in all the registration offices. 30
Information pertaining to the property registered and the notification for mutation is sent from the
central server of the property registration system (e-Nathikaran), which is used by all the
registration offices, to the central server of e-Bhuchitra. On successful registration of deeds, the
concerned DLLR officials receive a notification on the e-Bhuchitra system.
IV. TECHNICAL ASSISTANCE GRANT
40. An attached technical assistance (TA) grant of $500,000, funded by ADB’s Technical
27 Blocks are administrative sub-divisions of a district and function as planning and development units.
28 Directorate of Registration’s West Bengal Gazette Notification no. WB (Part I) /2019/SR-97 dated 4 February 2019.
29 Government of India, Ministry of Rural Development, Department of Land Records. 2019. Digital India Land Records
Modernization Programme-MIS 2.0 2019. India. http://dilrmp.gov.in/
30
Stamp duty is the duty or tax payable on transfer of property, shares, debentures, bill of exchange, conveyance deed,
hire purchase, promissory note and movable and immovable assets in accordance with the Indian Stamp Act, 1899
and amendments thereof (http://legislative.gov.in/sites/default/files/A1899-2.pdf). A stamp duty paid instrument is
considered a proper and legal instrument and is admitted as evidence in courts.15
Assistance Special Fund (TASF-Others), was approved on 20 September 2017 and became
effective on 13 February 2018. The original closing date of 30 October 2019 was revised to
31 December 2019 to align with the implementation arrangements of the program.
41. Under the attached TA, ADB recruited 28 person-months of national consulting services
from Deloitte Touche Tohmatsu India LLP, comprising (i) an MTEF specialist and team leader,
(ii) a PPP legal specialist, (iii) a PPP specialist, (iv) an internal audit specialist, and (v) a revenue
specialist. While the key objective of the TA was to support the GOWB in complying with tranche 2
policy actions, in particular the consultants supported (i) the improvement in revenue
administration, including strengthening the property registration system and implementing a
supply chain management system in state excise; (ii) the preparation of gender-responsive
MTEFs for two key departments and their linkage with the FY2019 budget; (iii) the identification
of PPP projects for financing from the WBIIDF; and (iv) preparing a risk-based audit manual and
strengthening the internal audit department’s capacity in conducting risk-based internal audit.
42. The following capacity building tasks were undertaken under the TA: (i) MTEF preparation
(SED and MoH&FW staff) on 14 May and 21 May, 2019, and (ii) risk-based audit procedures
based on the internal audit manual (internal audit staff of the Finance Department) on 16
September 2019. The following trainings were organized outside India:
(i) New Public Sector Management: Policy, Administration, and Governance (five
officers, 16–20 September 2019) at the Asian Institute of Technology, Bangkok
with a focus on (a) governance and policy making, (b) public service delivery and
good governance, and (c) public sector effectiveness and leadership skills; and
(ii) Finance for Non-Finance Managers (five officers, 14–18 October 2019) at the
Asian Institute of Management, Manila, covering (a) managerial use of financial
statements, (b) managing financial performance, (c) managing cost and profit,
(d) short-term financial planning, and (e) capital budgeting and long-term decisions.
Two other training programs are proposed at the Asian Institute of Technology and the Asian
Institute of Management in November 2019.
V. PROGRAM MONITORING
43. The Finance Department of the state government has been the executing agency. Its fiscal
policy and management unit has implemented the program and the TA, while the program
steering committee provided overall supervision and coordination. ADB missions monitored the
program activities at different levels through (i) an inception mission held on 12–15 February
2018; (ii) aide-mémoires from six loan and TA review missions on 2–4 April 2018, 1–6 June 2018,
5–6 December 2018, 11–15 March 2019, 31 July 2019–2 August 2019, and 11–13 September
2019; (iii) tripartite portfolio review meetings held among the Government of India, the GOWB,
and ADB on 28–29 March 2019 and 3-4 October 2019; and (iv) regular project status updates by
TA consultants (Appendix 4).
VI. PROGRAM ASSURANCES
44. All program loan assurances were complied with (Appendix 5). With respect to safeguard
due diligence, tranche 2 follows the previous tranche categorization C for environment,
involuntary resettlement, and indigenous peoples.
This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For
PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]
VII. CONCLUSION
45. Compliance with tranche 2 policy actions. The GOWB has fully complied with 13You can also read
