Some reforms in India show benefits of digitalisation: IMF

Some reforms in India have shown the benefits of digitalisation which has also reduced the opportunities for discretion and fraud, the IMF said in its latest report on Wednesday.

The introduction of e-procurement in India and Indonesia has also increased competition and led to better quality of construction, the International Monetary Fund (IMF) said in its latest edition of the fiscal monitor report released ahead of the its annual spring meeting with the World Bank.

"Some reforms in India show the benefits of digitalisation and reducing opportunities for discretion and fraud," the International Monetary Fund (IMF) said in its latest edition of the fiscal monitor report released ahead of the its annual spring meeting with the World Bank.

"For example, the adoption of an electronic platform for managing a social assistance programme in India resulted in a 17 per cent decline in spending with no corresponding decline in benefits," it said.

Similarly in Andhra Pradesh, the use of smart ID cards that are used to identify beneficiaries of specific programmes and improve beneficiaries' access to information helped reduce leakage by 41 per cent relative to the control group, it said.

According to the Fiscal Monitor report, studies on public procurement show that the design of procedures can have a significant impact on the prices and quality of products.

The introduction of e-procurement in India and Indonesia also increased competition and led to better quality of construction, it said.

(Agencies)