1. MMP on e-Treasury.. an approach to the design J Satyanarayana CEO, NISG 28 th 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. 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 Weeks8 Weeks6 Weeks- - - - - >

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

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 Criticality Low Criticality Low Feasibility High Feasibility Target these Processes for reform Eliminate these Processes Pursue reforming these Processes Continue existing Processes

13. Integrated Approach to e-Treasury

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