Aid, Accounts and Audit Division | Department of Economic Affairs

Introduction

The Department of Economic Affairs, Ministry of Finance is the nodal Department of Government of India to execute the legal agreement for loans or grants from external funding agenc(ies). However, the beneficiary Ministries/Departments, with the approval of Department of Economic Affairs, can also execute grant agreements for technical assistance.

The Aid Accounts & Audit Division (AA&AD), Department of Economic Affairs, Ministry of Finance is responsible for implementing the financial covenants laid down in the agreement(s) executed by Department(s) of Government of India and the External Funding Agenc(ies). AA&AD is responsible for drawing, accounting, managing, and servicing loans and financial assistance from multilateral and bilateral funding agencies, which support a range of developmental and social projects across the country. This division acts as a key interface between Funding Agencies, Central Line Ministries/Departments, State Governments and Project Implementing Agencies, to ensure timely disbursement of funds and debt servicing. AA&AD also participates in the periodic review meetings of physical and financial progress of projects with Project Implementing Agencies, Funding Agencies and DEA.

One of this division’s core functions is the compilation and preparation of the sovereign external receipts and debt service budget for inclusion in Government of India Union Budget. AAAD is also responsible for maintaining up-to-date external assistance statistics. A centralized system is managed to provide regular data and analysis to support informed decision-making at various levels of Government. AAAD publishes an annual brochure on external assistance and manages a web-based platform that publishes detailed information on the country’s sovereign external debt portfolio under External Assistance.

Additionally, the Division conducts audit of import authorization issued under various export promotion schemes run by the Directorate General of Foreign Trade (DGFT). These audits focus on assessing the realization of foreign exchange by authorization/license holders and ensure compliance with export obligations, in accordance with the terms and conditions of the respective schemes.