treasury system of jharkhand

8/13/2019 Treasury System of Jharkhand

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Computerization and Networking of Treasuries in Jharkhand

The extent of networking and computerization of treasuries in Jharkhandmakes them as one of the most modern and integrated treasury system in the country.

When one makes this assertion, people generally dismiss this as a mere publicity

gimmick. Unfortunately we, in this part of the country, have started believing in thestereotype that anything in technology happens first in states like !", #arnataka or

$u%arat before it can be replicated in &tates like 'ihar, Jharkhand or U". The fact ofthe matter is that the above assertion is true. (onsider following facts)

*i+ The operations of all thirtyone Treasuries&ubTreasuries in Jharkhand are

fully computerized and they are net-workedwith the &tate -ata

(enter with high speed leased lines.

*ii+ !ll the Banks which conduct the business of the Treasuries are also

linked with the State Data Centerand the concerned Treasuries with highspeed leased lines.

*iii+ The details of every bill, which is passed in any of the treasuries aremade available to the &tate / and the 'anks on a real time

basis. 0n other words, the entire system is web-based and the

data is kept on a centralized basis in the &tate -ata (enter in1anchi.

2. There have been some ma%or changes in the procedures and processes of

the bill clearance during the past 23 years. (onsider following facts)i. "reviously, list of bills passed by the Treasury used to go in paper form to the

'ank as a debit-scroll. The bills were bunched together with each

advice of about 45 bills. When the bills passed by the treasury used to reach

the bank for payment, bank would match the bill with the debitscroll beforemaking payments. This procedure was there so as to ensure that fake bills did

not get encashed. 6ow no debitscroll goes to the 'ank. !s soon as a bill ispassed by the Treasury, the information becomes available, instantly, on the

computer screen of the 'ank 'ranch. When the bill reaches the bank, the

'ank makes the payment and, instantly again, the payment information

becomes available to the Treasury 7fficer on his computer screen.

ii. 0t used to take months together to prepare the Statement of ccountsof each

Treasury. !$, as also the 8inance -epartment used to remain busymonitoring the &tatement of !ccounts. 6ow each Treasury is able to prepare

its &tatement of !ccounts for a month by the 4th of next month.

iii. The size of the pay billsused to be that of an !2 paper *a paper *four times

the size of a normal page+. The officers had to put their signatures at seven

places *without knowing as to what they are signing on 9 the writing on thepaybill paper bore no relationship to the contents of the bill: +. ;ach salary

bill also had a number of &chedules for the paymentsdeductions made from

the salary. There used to be separate Schedules relating to "rovident 8und,


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0ncome Tax, $roup 0nsurance &cheme and recoveries of ouse 'uilding

!dvance etc. 7n an average, each pay bill used to have five such uite natural that many of the schedules used to be

lostmisplaced in the transit resulting in serious information gaps relating tocontributionsdeductions made on account of $"8 contributions for which

the concerned officers used to suffer harassments. Now the !ay Bill of anofficer is an -" size single sheet# There is %ust one signature and there areno &chedules. The best part of it is that the information provided there is

legible and correct. 6ow all the deductions and contributions become a p?art

of the database and there is no need to keep accounts for various deductions at

various places.

iv. "reviously, bills presented at the treasury used to be checked manuallyfor a

number of things like availability of allocations *remember the !nimalusbandry scam where money was withdrawn without allocations@+,

correct heads and --7 (odes etc. 6ow the bills are generated on the

computer and the information is already available to the Treasury 7fficerabout the bills, which are going to be presented in the near future. ;ach &alary

bill generated by the system has a control number and when it is presented at

the Treasury, the Treasury 7fficer %ust retrieves the bill from the computer

through the control numbers. This has made the life of the people of theTreasury office very easy as they do not have to repeatedly enter the data

every month for every bill.

v. ;arlier the 'ill clerks in each department used to take weeks together to

prepare bills. 6ow, they are able to prepare bills through the computer in no

time as the details of previous monthsA salary bills etc. are already available

and with minor modifications, they are again reprinted. This has ensuredaccuracy of the salary bills, correct heads and better accountkeeping.

3. The system has resulted in overall improvement in pro$iding better ser$ices to the

stake-holders. (onsider following facts)

i. 8or getting $"8 accounts, the employees had to run from Treasury toTreasury and used to collect TB 6umbers and what is described as C(ollateral

;videncesC of their deposits. 6ow they can see their accounts online.

0n fact, the $overnment has now started the service of regularly informing theemployees about their contribution through &D& at the end of each month.

This &D& includes the amount of contribution, Treasury Boucher *TB+

number and date of deduction.

ii. 0t has simplified and eased the work of Bill Clerkswho can now prepare bills

in no time. 0t has also made life easier for %fficials in the Treasuriesbecause

they do not have to prepare &crolls, check bills for various errors and makeentries in various ledgers for preparing the accounts at the end of each month.

The Drawing & Disbursing %fficers 'DD%s+ can now prepare their statutory


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reports online. The Banks do not have to worry about the receipt of &crolls,

illegibleincorrect heads of account and amounts etc. 6ow it is flashed on their

computer screens with no ambiguity.

E. Fastly, the system has also enabled better fiscal management and planningat macro-le$el. (onsider the following

i. !s each employeeAs data relating to salary, scale of pay etc. are available onthe system, it is possible to calculate the re>uirement of salary and otherallowances for all employees of any -epartment or organization with high

degree of precision. There were examples of surrender of hundreds of crores,

especially in -epartments with large employees like ;ducation and ealth on

account of salary as the salary re>uirements were not correctly estimated.6ow with the precise data available, it is possible to compute the salaryre(uirementswith high degree of accuracy.

ii. 0t is possible to set and enforce policies relating to withdrawal from the

Treasury. !s an example, if the &tateAs fiscal position deteriorates and

$overnment has to put certain restrictions on withdrawals of certaincategories of expenditures *e.g. arrear bills or other bills relating to

contractors etc.+ it can be easily done centrally. The computer will %ust

not allow the clearance of the bills for which restrictions have been imposed

by the 8inance -epartment. &imilarly, if there are temporal restrictions *forexample the -epartment should not spend more than 45G of the allocations

within the first six months of the financial year+ this can also be implemented.

iii. The 8inance -epartment has now access to withdrawal)e*penditure figures"eriodwise, Treasurywise, -epartmentwise and eadwise. There is now

no need to call for the information from each -epartment regarding the

progress of expenditure as this information is available centrally.

iv. !s information relating to all the employees and their -epartments areavailable, it is possible to do better resource planning. 0t is also possible to

estimate the pensionery liabilities or the payments of the $"8 etc. 0n other

words, financialexpend planning of the state has become highly scientific and

precise.

4. We do not intend to stop here. We are already in the process of developing an

+ntegrated ,inancial anagement System, which will integrate planning,budgeting, sanctions, allocations and withdrawals so that the entire financial system

of the &tate works in an integrated and connected manner.

H. !ll the above has been possible because of two important facts. The first is the

availability of the &tate -ata (enter and the second is the availability of the &tate

Wide !rea 6etwork. The &tate has been able to leverage the power of connectivity of

Jhar6et and &tate -ata (enter to achieve an 0ntegrated Treasury &ystem christened

as Kuber.


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I. The &ystem is also a fine example of perfect coordination between the 0T and

8inance -epartment of the &tate. 'oth the -epartments have worked together to

ensure that we achieve the target of developing an integrated system of the treasuries.0n fact the 8inance -epartment has been very proactive in process reforms. 0t would

have been nearly impossible to change forms, processes and even system of bill

preparation in the normal course but for the personal interest of the 8inance &ecretary.The !ccountant $eneral has also been very helpful in going ahead with changes.

. 8inally 60( has also done a commendable work in developing the entire softwarefrom the scratch. !ny consultant would have charged huge amounts for this work.

There are no consultants in this pro%ect.

treasury system of jharkhand

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