Presentation Transcript
Slide 1:Roll and Functions of
Various Stake Holders
towards External Assistance
And
Fund Flow Mechanism
Slide 2:Govt. of India - Ministry of Finance Department of
Economic Affairs Department of
Revenue Department of
Expenditure Multilateral Institutions
Division Bilateral Cooperation
Division Budget Division Multilateral Relations
Division AAA&D Division Department of
Financial Services Economics Division Infra & Investment
Division Divisions under DEA
FUNCTIONS of AA&AD :FUNCTIONS of AA&AD External Aid Accounting Disbursements Debt Servicing Coordinating with Project Implementing Agency, Donor, Bank etc. Budget for External Aid Receipts & Payment Maintaining External Aid Statistics Debt Statistics and other Reports in computer system for management. Aid Accounts
&
Audit Division
Role of BorrowerMinistry of Finance (DEA)(Multilateral Institutions and Bilateral Cooperation Divisions) :Role of BorrowerMinistry of Finance (DEA)(Multilateral Institutions and Bilateral Cooperation Divisions) Facilitates Appraisal
Processing and Negotiations
Signing of Agreements
Causing agreements to take effect
Follow up of project implementation and monitoring
Coordinating mid-term review and completion report to donor
All other actions relating to Agreements viz. Amendments, Reallocation, etc.
Role of Project Implementing Authority :Role of Project Implementing Authority Helps in project appraisal
Signing project agreement
Ensuring proper procurement procedures acceptable to donor
Responsible for all project activities and sending periodical reports to donor
Maintaining proper accounting records based on sound financial management
Responsible for preparing reimbursement claims and sending the same to Aid Accounts & Audit Division, New Delhi
Ensuring timely audit of accounts and reports to donor by due date
Prepare completion report of the project identifying further phase of the project where donor can finance
Role of Aid Accounts & Audit Division(AA&AD) :Role of Aid Accounts & Audit Division(AA&AD) Authorized signatory to withdraw funds from the loan accounts from the Donor
Responsible for maintaining special account for advance deposit received from the Donor and ensuring submission of audit certificate to the Donor
Arranges periodical payment to Donor of all loan charges and principal repayment by due date
Supplies disbursement details to PF-I, Department of Expenditure for release of Additional Central Assistance to State Governments.
Maintaining Sovereign Debt Statistics and reconciling the same periodically with Donor.
Rendering Periodical Accounts to C.G.A. for incorporation in the Union Finance Account.
Publication of Annual External Assistance Brochure.
Role of RBI towards External Aid :Role of RBI towards External Aid Repository of all Foreign Currencies Inflows
INR equivalent of Foreign Currency Flow from External Aid is passed on to the Credit of CAA&A
Maintenance of Loan-wise Special Account in disbursed currency for the advance/deposits received from Donors.
Coordinating with CAA&A for sending External Debt data to Donor and other institutions.
Providing Exchange Rate for Government transactions of major Foreign Currencies to AAAD on daily basis
Role of Commercial Bank towards External Aid :Role of Commercial Bank towards External Aid S.B.I., B.O.B., Canara Bank, BOI, UBI and PNB are designated banks.
Responsible for remitting foreign currencies to the donors towards repayment of principal and interest payment and other charges on due dates
Coordinates with CAA&A and RBI in discharge of their functions.
Multilateral Agreement :Multilateral Agreement Agreement with an institution or bank whose capital is subscribed by two or more countries / institutions / banks to finance in different (multi) currencies equivalent to loan currency e.g. agreement with International Financial Institutions like World Bank, Asian Development Bank etc.
Bilateral Agreement :Bilateral Agreement Agreement between two sovereign government
Financing can either be in the currency of the donor or different currency equivalent of loan designated in donor currency
Foreign Expenditure :Foreign Expenditure Expenditure in the currency other than the currency of the borrower
Local Expenditure
Expenditure in the currency of the borrower
PROJECT CYCLE :PROJECT CYCLE Negotiations (Donor & Govt.) Appraisal By Donor Proposal To Donor Identification By Govt. Evaluation By Donor Project Completion
Completion Report Declaring The
Agreement Effective Project Execution Financial Agreement Donor /GOI
& Project Agreement Donor/
Project State
Disbursement Flow Chart :Disbursement Flow Chart Project Implementing Agency AA&A Div. Reimbursement Claims Under
Revolving Fund Procedure Reimbursement Claims Not
Under Revolving Fund And
All Direct Payment Claims R.B.I. Mumbai AA&A Div. Donor office in India Donor Head Quarters Reimbursement Claims C.A.A.&A’s Account at RBI,
New Delhi Through RBI Bombay Direct Payment Payees Account Advise AA&A Div. Claims Advice Statement
Fund Flow Chart Direct Payment Procedure :For Expenditure Budgeted
at S.R. of F.C. by P.I.A Credit CAA&A’s
Account S.R : Selling Rate of RBI.
F.C. : Foreign Currency
P.I.A. : Project Implementing Agency
D.R. : Daily Rate
D.O.E. : Department Of Expenditure
P.F. Div. : Plan Finance Division
C.A.S. : Central Accounts Section Claims AA&A Div. Donor through local office Payee’s Account Advise AA&A Div. Rs. at Selling Rate
PMU Div. D.E.A P.F. Division at D.O.E. R.B.I. C.A.S.
Nagpur. Cr/Dr. State Govt.
Account Expenditure
Incurred Interest. Fund Flow Chart Direct Payment Procedure
Fund Flow Chart- Reimbursement Procedure :Fund Flow Chart- Reimbursement Procedure Expenditure Budget of P.I.A. Claims A.A.& A Div. For Claims Under Revolving Fund For Claims Outside Revolving Fund Donor RBI Mumbai A.A.& A. Div. Statement Disbursement to CAA&A Account P.F. Div. of D.O.E PAO Expenditure RBI, C.A.S. Nagpur State Govt. Account- Credit P.I.A. : Project Implementing Agency
P.F. : Plan Finance
D.O.E. : Department of Expenditure
C.A.S. : Central Accounts Section Through
Loacl office
Back to Back Loans :Back to Back Loans 12th Finance Commission recommended that External Assistance may be passed on to states on the same terms and conditions, on which the loans/grants are received by GOI.
Government of India has accepted this recommendation.
All External aid agreements for State Projects except for Special Category States w.e.f. 1st April 2005 are now on Back to Back basis. However there is no change in upfront payment to donor by AAAD and for release of ACA by PF-I.
: Thank you