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Quarterly Progress Report for the quarter ending June, 2005


The progress made under the Assam Governance Public Resource Management Program till June,2005 may be summarised as below:

PROGRAM:
GoA has fulfilled the following Tranche1 and Incentive Tranche Conditions viz.

a) MTFP and Fiscal Resposibility Bill:
The FRMBA has been enacted vide Assam Gazette Notification No.LGL.59/2005/13 dated 17th May,2005.The MTFP for fiscal year 2006 has been approved in consultation with the ADB.

b) Fiscal Management Unit:
The FMU has been established in the Finance Department consisting of five cells(revenue reform cell, debt management cell, budget reform cell, expenditure reform cell and pension reform cell) vide Notification No. FEA 106/2004/49 dated 8-11-2004.Different Cells have also been notified vide FEA/2004/32 dated 10-11-2004.

c) Time Bound action plan:
The FMU draft time bound action plan has been prepared and submitted to the different cells for approval.

d) Revenue Administration:
Revenue policy guidelines for additional tax efforts has been issued by the ASG vide FEA106/04/51 dated 8-11-2004.
GoA's intention to establish composite checkposts has been announced in the budget speech. Land has been acquired for this purpose and PWD has submitted cost estimate for the same. The draft notification has been prepared and submitted to the Cabinet for approval.

e) Sales Tax policy:
VAT regime has been given effect to from 1st May,2005 vide the Assam Gazette Notification No.FTX.55/2005/2 dated the 28th April,2005.

f) Agriculture Income Tax:
The Assam Agriculture Income Tax has been amended vide The Assam Agricultural Income Tax(Amendment) Act,2004 notification no.LGL.22/2002/97 dated 9th September,2004.

g) State Excise policy:
Draft amendments to the existing Excise Act in terms of converting specific excise duties on IMFL into an advalorem levy have been prepared and submitted to Cabinet for approval.

h) Stamp Duties and Registration Fees Policy:
Amendment of Stamp duties has been done vide Assam Gazette Notification No.LGL.33/2003/7 dated 17th September,2004.

i) User Fees: High level committees viz. a committee on “health user charges, a committee on education fees””, a committee on “”water user charges”, a committee on “transport user charges” have been setup by the ASG for strategic review of user fees vide FEA 106/2004/52-53-54 & 55 all dated 10/11/2004.

j) Restructure State Debt:
Debt settlement of high interest instiutional loans(and Guarantees given to PSEs)has been undertaken.The State Government has been liquidating high cost Govt.Guaranteed loans under OTS.ASG has already undertaken (i) debt swaps/settlements of Rs.72.22 crores with a no.of financial institutions (HUDCO,IDBI,SBI,UBI,CANARA BANK) for high interest loans above 10% and (ii)one time settlement of PSEs for Rs.36.98 crores including the 2 PSEs scheduled for closure under the program.So far as introducing an enhanced debt management and data collection system is concerned,there is one existing inventory of debt and guarantees in the budget cell. The process of review is on and its computerization will subsequently be taken up.

j) Contain State pension liabilities:
GoA has introduced new pension rules for State Government employees, who will join State Govt.service after 1st February,2005 in line with the contributory pension scheme of GoI. It has been proposed to participate in the new pension policy of the GoI without resorting to pension fund management etc at state level in order to avoid hassles.The time bound action plan for the estimation of all pension liabilities has already been drafted and placed for approval.

k) Reform of Public Sector Enterprises:
SRF:
A decision has to be taken whether SRF will be developed and approved by the Finance Department,Public Investment Board or the Standing Committee on PSE reforms.
SSN Program:
Basic guidelines of SSN Program have been issued vide letter No.FEA.106/2004/56 dated 10th Nov'04.
ASEB Terminal Benefits:
The necessary budget provision for ASEB terminal benefit liabilities.A total of Rs.44.10 has till date been disbursed.

l) Public Administration Review:
AARC is taking steps on PA rationalization policy.The ERC has been mandated to undertake public expenditure tracking surveys of selected ASG departments.
The Assam Administrative Reforms Commission has been mandated vide FEA 106/2004/57 dated 10-11-2004 to build on its functional reviews for selected ASG departments and its review of the functioning of the Vigilance Commissioner,Directorate of Anti corruption and other existing vigilance mechanisms to enhance their effectiveness for prevention and investigation of corruption.
A complete digitised staff inventory for identified departments is already under process.

PROJECT:
The invitation for co-ordination consultant firm prequalification for the project was posted on 15th February,2005.GoA has till date received 4 EoIs from international as well as domestic consulting firms.The GoA in consultation with ADB will finalise the terms of reference and selection criiteria for short-listing consulting firms and evaluating proposals.

Public Finance Information Technology:
The invitation for prequalification for procurement of the IGFMIS was posted on 22nd February2005 and, till date,GoA has received 12 EOIs from consortiums of international as well as domestic vendors.
An EOI Evaluation and Bid Management Committee has been formed to evaluate and short list EOI for IGFMIS and Advance action for the procurement of coordination consultant.

Training:
GoA had a preliminary discussion with NIPFP to conduct tailored training for GoA officials on Subprogram1 related issues with first priority to be accorded to FMU staff.GoA and NIPFP would soon decide on a mutually convenient time and course content.

Public Awareness:
The Assam Development Forum(ADF) tentatively scheduled during the 4th Quarter of 2005 will have to be developed.A list of stakeholders and potential participants from GoI,GoA and experts would have to be prepared with administrative support from coordination consultants for content of the ADF program.

 

 

Quarterly Progress report for the quarter ending September, 2005:


The progress made under the Assam Governance Public Resource Management Program till September, 2005 may be summarized as below:

PROGRAM:
GoA has fulfilled the following Incentive Tranche Conditions as detailed below viz.

a) MTFP and Fiscal Resposibility Bill:
The updation of MTFP pursuant to reviews of MTFP quarterly review and remedial action reports on targets is on and preparation of Policy guidelines on cash management is under process.
The FRBMA has been amended as the targetted year for realising the objectives enshrined in the Act has been reduced to 2008-09.

c) Time Bound action plan:
The FMU time bound action plan for the FMU has been notified vide Govt.Notification No.FEA.106/04/439 dated 23rd September,2005.

d) Revenue Administration:
The notification on composite checkpost at Srirampur is awaiting Cabinet approval.

g) State Excise policy:
Draft amendments to the existing Excise Act in terms of converting specific excise duties on IMFL into an advalorem levy is awaiting Cabinet approval.

h) Stamp Duties and Registration Fees Policy:
Discussions are on with the Revenue Department for compliance of the incentive tranche condition of determining the objective valuation methods for properties.

i) Restructure State Debt:
ASG has till date liquidated Rs.119.05 crores to settle GoA's debt of high interest institutional loans and GOA's guarantee for PSE loans which includes OTS for closed PSEs also.

j) Improve State budgeting:
The operating guidelines on state budget planning covering budget presentation and content, charts of accounts, off-budget borrowings, contingent liabilities, arrears, PSE losses and subsidies have been initiated and preparation of a state budget for FY2007 incorporating revised MTFP projections has commenced.

k) Reform of Public Sector Enterprises:
SSN Program:
The SSN program designs is awaiting Cabinet approval.
Closure of PSEs:
Till date, Rs.300.32 lakhs have been paid to the closed/proposed for closure SLPEs(13 Nos.) as IR/retrenchment dues which will accordingly be adjusted against VRS dues/salary arrear dues as soon as the SSN programme is announced.Three (3) PSEs viz. Assam Spun Silk Mills Ltd.,Cachar Sugar Mills Ltd. & Assam State Weaving & Manufacturing Ltd. Slated for closure under the program, have been closed down through OTS for Rs.8.72 crores only.
ASEB Terminal Benefits:
Total requirement for ASEB terminal benefit liabilities is about Rs.60.56 crores in FY 2005.AERC power tariff revision for the same (8 paise per unit) has covered Rs.25.39 crores. Finance Department has agreed to provide remaining Rs.35.17crores.

l) Strengthen Public-Private Partnerships:
Business Incubation Unit and Skills Development and Placement Unit:
The establishment of a Business Incubation unit & a skills development and placement unit both in the DPE to facilitate PSE employment training and PSE outsourcing services (under Public-Private partnership)has been merged with the SSN guidelines which is awaiting Cabinet approval.

PROJECT:
For Co-ordination consultancy,GoA affirmed ADB's suggestion of incorporating 4 additional firms from ADB's DACON list in order to ensure a broad enough list of 8 firms for adequate competition for selection.The terms of reference and selection criteria for short-listing consulting firms and evaluating proposals were finalised in consultation with ADB and 7 firms were shortlisted.RFPs were issued to these firms on 22nd of September,2005, asking them to submit full technical proposal by 5th of November, 2005.

Public Finance Information Technology:
Out of the 12 EOIs received from consortiums of international as well as domestic vendors,7 firms were shortlisted by GoA.But ADB objected to the evaluation process on grounds of violation of conflict of interest(CoF) rules and suggested that an Ïnvitation for Bids” notice be reposted with the qualification requirements including the CoF rules being clearly specified so as to include any other interested firm/consortium apart from the 12 firms .However, this matter has not yet been finalised as the decision on the issuance of bidding documents to firms has been deferred till the scope of IGFMIS is determined in order to enable GoA to coordinate with various ongoing projects like CTMIS,TIMS and ASWAN and thereby avoid duplication of efforts and investments.As per the agenda of the Bid Evaluation committee meeting scheduled to be held on 6/10/2005, a committee comprising officials from the key departments would soon be formed to work out the scope of IGFMIS.

Training:
The first batch of 25 officials of Finance and related departments participated in a one week public finance training program for middle level GoA officials at the National Institute of Public Finance and Policy(NIPFP) in New Delhi from 8th-12th August,2005.The training provided a comprehensive foundation course on the issues related to state finances and state budgeting and was quite a fruitful one.GoA would soon be sending a second batch of officials to NIPFP.

GoA 's utilisation of Project Fund:
GoA has till date utilised Rs.12 lakhs out of the fund earmarked for Project Loan under the following heads:
a) Cars; (b) Equipments like laptop,xerox machine etc. for the smooth functioning of the FMU; © PoL,Car Hire Charge; (d) Training, NIPFP etc.
All the matters awaiting Cabinet approval will be settled in the next Cabinet meeting as and when it is convened.

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