Para 3.17.14 — MSO (Audit)
Original Rule Text
3.17.14 The World Bank gives aid in two ways :
(i) Sanctioning and releasing an amount of expenditure in advance.
(ii) Reimbursement of claim.
What This Means
The World Bank provides financial assistance in two ways. First, it can sanction and release funds in advance, giving the borrower money upfront before expenditure is incurred. Second, it can reimburse claims, where the borrower first spends from its own resources and then submits a claim to the Bank for reimbursement of eligible expenditure.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Two modes of World Bank aid: advance release and reimbursement
- 2Advance release: funds provided before expenditure occurs
- 3Reimbursement: borrower spends first, then claims eligible costs from the Bank
Practical Example
For a World Bank-funded highway project, the National Highways Authority incurs Rs 50 crore in construction costs during a quarter. It compiles a withdrawal application with supporting Statements of Expenditure, submits it to the Department of Economic Affairs, which forwards it to the World Bank. The Bank reviews and reimburses the eligible expenditure by transferring the equivalent amount to India's account.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Which method does India use for World Bank projects?▼
Does the method of aid affect audit requirements?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.