MMP on e-Treasury.. an approach to the design

J SatyanarayanaCEO, NISG

28th Dec 2005

Agenda

1. Context of e-Treasury1. Context of e-Treasury

2. Design Considerations of MMP2. Design Considerations of MMP

3. Suggested Methodology3. Suggested Methodology

4. Conclusion 4. Conclusion

The Context

• Structural Weaknesses in the State Finances- reflected in

• Persistent expansion of Revenue Deficit & Gross Fiscal Deficit

• Large accumulation of debt• Major share of non-developmental expenditure• Low & declining non-tax revenues

• Large Volumes of treasury transactions• 30 crore bills & 15 crore challans p.a

• Instances of fraud & mistakes• Arrears in Accounting & Audit• Need for fundamental reforms in procedures

The Vision

• Improve Fiscal Discipline & Financial Management

• Introduce Service Orientation, coupled with• Tight Regulation• Efficient Management

• Bring in Process Transformation• End-to-end transaction• Budget-to-Audit

• Attempt Integrated Financial Management• Across all stakeholders

• Coupling of Centre-State Financial Systems

Realize the vision..

…through a well-designed

Mission Mode Project on

e-Treasury

Design Considerations of MMP

• Centralized Designs, Decentralized Implementation

• Prevent duplicative effort• Learn from best practices in a few states, countries

• Large dose of Process Re-engineering• Identify core processes for Re-engineering

• Innovative Technology Architecture • Adaptable, Scalable, Standards-based & Secure

• Imaginative Change Management Strategy• Comprehensive Capacity Building Plan• Holistic Approach in designing the MMP

CADS Methodology for Designing the MMP

• Study•AS IS• 4 States

• Best Practice• Stakeholder Consultation• Develop

•Vision•Mission

• Scope• Business Case Analysis

Conceptualize

• Functional Architecture •Technology Architecture •Process Architecture •People Architecture

Architect

• Services • Service Levels • Roles & Responsibilities

• Model RFPs

•Scheme of MMP

Define

• POC • National Workshops

•Program Management

•Knowledge Management

• Assessment

Support

4 Weeks 8 Weeks 6 Weeks - - - - - >

LandRecords

RoadTransport Police

LandRegn

TreasuriesComrlTaxes

Agriculture

Gram Pts

Munici palities

EmploymentExchanges

CivilSupplies

Education

Place of e-Treasury in NeGP

IncomeTax

PassportVisa

MCA21

Insurance Banking

NationalIDCentral

ExcisePensions

GIS e-Posts

Common ServiceCentres

Gatewaye-Procure

e-Office

eBiz

EDIe-Courts

IndiaPortal

CorePolicies

e-Treasuryhas to play a pivotal role

in NeGP

Expected Outcomes of the MMP

• Efficient Services to Stakeholders• Through Simplified Procedures

• Improved Financial Management

• Bolster Fiscal Responsibility Legislations

• Outcome-based Budgeting

• Prompt & Accurate Accounting

• Better Management of Debts

• Timely Audits

Conclusion

e-Treasury is a large & complex MMP of

National Importance

Comprehensive Design Is

Critical to its Success

Thank You

ceo@nisg.org

Identifying Core processes for reform

High CriticalityLow CriticalityL

ow

Fea

sib

ility

Hig

h F

easi

bili

ty

Target these Processes for reform

Eliminate these Processes Pursue reforming these Processes

Continue existing Processes

Integrated Approach to e-Treasury

e-Tresury needs a holistic approach

ProcessReform

Management

TechnologyManagement

KnowledgeManagement

ProgramManagement

ProcurementManagement

ExpectationManagement

ResourceManagement