The Asian Development Bank (ADB) has approved a $100 million loan to the North Eastern state of Mizoram for undertaking a financial-cum-social sector reform programme named ‘Mizoram Public Resource Management Programme’ (MPRMP).
The reform programme is designed to improve the state government’s finances, and for strengthening service delivery in the social sector.
MPRMP is aimed at helping the state government to raise additional revenue from tax and non-tax sources, and improve debt management, including pre-payment of high cost loans, besides strengthening service delivery in the education and health sectors.
According to Ashok Sharma, director of the financial sector, public management, and trade division of ADB's South Asia department, Mizoram has, in recent times, “demonstrated strong political commitment to undertake financial reforms and the bank was pleased to support these efforts.” MPRMP is also aimed at revamping the state’s costly pension scheme and “overhaul of loss-making public sector enterprises, with downsizing or closure not excluded among the options.” In addition to revamping the state's costly pension scheme, the reform programme will also try to improve the state health insurance scheme by targeting more efficient service in a cost-effective manner, stated a release. Funds would also be allocated for a voluntary retirement scheme for teachers in primary and secondary schools as part of ongoing efforts to improve the education sector. The programme will conclude in July 2012 and the state’s finance department will be the executing agency.