Ministry of Finance
Department of Economic Affairs
Aid Accounts & Audit Division
Role and Function
The activities relating to sovereign external assistance are dealt with by various divisions in the Department of Economic Affairs. Aid Accounts & Audit Division (AA&A Division) provides Back Office support for this activity. Its functions comprise the administration of a complete life cycle of an agreement from its signature to its final re-payment. This includes the framing of budget estimates relating to External Assistance for Receipts and Repayments. AA&A Division maintains a comprehensive external debt database relating to sovereign debt from all multilateral and bilateral donors including debt contracted by parastatals guaranteed by Government.
These can be classified under the following heads:
· All matters connected with financial covenants in negotiated Aid Agreements.
· Withdrawal of funds from Loan/Grant Account.
· Scrutinizing claims received from the Project Implementing Agencies as to their eligibility as per relevant credit agreements and submitting the same to the donor for obtaining disbursement.
· Release of Additional Central Assistance (ACA) to the concerned states/sub-national levels.
· To facilitate monitoring and to provide access to Project Implementing Agencies, State Governments, Line Ministries and others, this Division maintains a dynamic web-site "aaad.gov.in"(for details see "Site Map").
· Monthly in-house reporting of status of utilization vis-à-vis Donors
· Status of disbursements with reference to the Budgeted Estimates
Management of Debt:
· Timely discharge of debt service payments
· Maintenance of Loan Account under each Loan Agreement
with Reserve Bank of
Production of Statistical Information
· An External Assistance Brochure containing detailed information about Debt Outstanding; Un-drawn Balances from the Loan/Grant Account donor-wise, loan agreement-wise, sector-wise etc. is published annually
· Data submission to World Bank for publication in Global Development Finance (GDF)
· Data for Template on International Reserves and Foreign Currency Liquidity
· Special Data Dissemination Standards (SDDS) reporting
· This Division conducts audit of Import licenses issued to registered exporters for export promotion by the 37 Licensing offices under Directorate General of Foreign Trade.
Special Features of AAAD:
· E-submission of claims
AS far as possible, Disbursement claims are accepted electronically from the Projects. Further, as a first time measure, and particularly for new projects, the claims are submitted electronically for World Bank Projects through Client Connection of the World Bank. More projects will be covered under this program in the near future.