Funds Flow, Accounting, and Audit in India

Abstract

This is intended as a quick reference guide to those processing and implementing projects in India. While the Government of India acts as the borrower or recipient for ADB loans and grants, the executing and implementing agencies receive funds through complex on lending arrangements involving transfer of interest rate and foreign exchange risk, and even different pricing and repayment terms. The need is emphasized to follow the budget mechanism of the central and state governments to ensure that funds flow smoothly and are subject to the effective fiduciary oversight of the government’s internal control systems and the external audit by the comptroller and auditor general of India.