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

1. MMP on e-Treasury.. an approach to the design J Satyanarayana CEO, NISG 28th Dec 2005

2. Agenda 1. Context of e-Treasury 2. Design Considerations of MMP 3. Suggested Methodology 4. Conclusion

3. 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

4. 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

5. Realize the vision.. …through a well-designed Mission Mode Project on e-Treasury

6. 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

7. Conceptualize Architect Define Support • Study • AS IS • 4 States • Best Practice • Stakeholder • Consultation • Develop • Vision • Mission • Scope • Business Case Analysis • Functional • Architecture • Technology • Architecture • Process • Architecture • People • Architecture • Services • Service Levels • Roles & • Responsibilities • Model RFPs • Scheme of MMP • POC • National Workshops • Program Management • Knowledge Management • Assessment CADS Methodology for Designing the MMP 4 Weeks 8 Weeks 6 Weeks - - - - - >

8. Place of e-Treasury in NeGP Education Gram Pts Munici palities National ID Pensions Central Excise Road Transport Police India Portal e-Posts EDI GIS e-Courts eBiz Land Records Land Regn e-Office Banking Insurance Gateway e-Procure Common Service Centres Passport Visa MCA21 Income Tax Comrl Taxes Treasuries Employment Exchanges Civil Supplies Agriculture e-Treasury has to play a pivotal role in NeGP Core Policies

9. 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

10. Conclusion e-Treasury is a large & complex MMP of National Importance Comprehensive Design Is Critical to its Success

11. Thank You ceo@nisg.org

12. Identifying Core processes for reform High Feasibility Continue existing Processes Target these Processes for reform Low Criticality High Criticality Pursue reforming these Processes Eliminate these Processes Low Feasibility

13. Integrated Approach to e-Treasury

14. Procurement Management Process Reform Management Technology Management Knowledge Management Program Management Expectation Management Resource Management e-Tresury needs a holistic approach