An Agreement for IBRD Credit of USD 21.7 Million from World Bank for the Strengthening of Public Financial Management in Rajasthan Project was signed here today in New Delhi by Shri Sameer Kumar Khare, Joint Secretary (FB and ADB), Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Hisham Abdo, Acting Country Director, World Bank (India) on behalf of the World Bank. The Implementing Entity Agreement was signed by the Secretary, Finance (Budget) on behalf of the Government of Rajasthan, and the Acting Country Director (India) on behalf of the World Bank.

The Project size is approximately USD 31 million, of which USD 21.7 million will be financed by the World Bank, and the remaining amount will be funded-out of the State Budget. The Project duration is 5 years.

The Project objective is to contribute to improved Budget execution, enhanced accountability and greater efficiency in Revenue Administration in Rajasthan. The Project involves Strengthening of the Public Financial Management Framework; Strengthening of Expenditure and Revenue Systems; and Project Management and Capacity Building among others.

Public financial management reform: Loan agreement advances budget execution and revenue administration reforms in Rajasthan. A Loan Agreement between the Government of India and the World Bank finances a five-year project to strengthen public financial management in Rajasthan, combining international credit with state budget co-financing. The project targets improved budget execution, enhanced accountability and greater efficiency in revenue administration through strengthening the public financial management framework, reinforcing expenditure and revenue systems, and providing project management and capacity building; implementation responsibilities are assigned to state finance authorities and World Bank counterparts.