The Himachal Pradesh Public Financial Management Capacity Building Program of GoHP has been extended an IBRD Credit of $36 million from the World Bank. The Himachal Pradesh has been given the loan in support of its plans for improving the Public Expenditure Management sector and Tax Administration department. The multilateral Implementing Entity Agreement agreement was signed between the state government, government of India and the lender bank. With the financial help from the World Bank the state of HP will be able to uplift its finance and economy in multidimensionally.
Why Did Himachal Need Loan?
The government of Himachal Pradesh has come into the agreement of getting a loan of $36 Million from the World Bank mainly due to its deficit revenue caused by fiscal prudence. The financial lending will help the Excise, Revenue and Excise, Public Health, Information Technology and Public Health Departments of the state government. The multi dimensional programme will help the departments in:
- modernizing the payment system
- executing the budget more efficiently
- improving fiscal discipline
- strengthening revenue to increase tax space
- and bringing reforms in human resources
In short the programme in whole would ensure efficient collection of tax and utilization of financial resources in the state of Himachal in an appropriate way.
The Financial Reforms Of Himachal Pradesh
The state of Himachal Pradesh is looking forward to transform its financial state completely and is taking a futuristic approach regarding it. Therefore in order to spend its capital more methodically and upgrade its budget, public funds accounting in government departments and finance the Himachal has made the Himachal Pradesh Public Financial Management Capacity Building Programme.
The cost of the whole programme has been estimated to be around $45 million out of what The International Bank for Reconstruction and Development(IBRD) will impart $36 million to the GoHP and rest of the $9 million will be extracted from the State Budget. The duration of the programme or the grace period is 5 years.
Source: Business Standard