On 05/17/2004, USAID announced that it was awarding a five year contract worth $11.8 million dollars to Bearing Point (formerly known as KPMG Consulting) to implement the first phase of project REFORM in order to bolster fiscal management systems for better forecasting, budgeting and investment of public resources in India. The project was a result of detailed dialogue with the Government of India Ministry of Finance and the three state governments of India: Karnataka, Jharkhand and Uttaranchal. The total value of the project was stated to be $20 Million dollars.
Despite strong growth rates registered by the Indian economy, state government finances are strained, limiting investments in social and physical infrastructure – such as education, health, roads, ports and agricultural irrigation. States continue to be stressed by high fiscal deficits, raising concerns about the long-term sustainability of India’s overall growth. There are not enough resources for needed social investments and capital improvements, which often cuts services to those who need and use them most: the poor, the unemployed and the illiterate.
Date: Wednesday, May 26, 2004 - 07:42 AM Printer Friendly  Email to a Friend 
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