In digitizing India, Public finance architecture should be automated

Zafar Bhat. Dated: 9/18/2017 8:52:53 AM

Zafar Bhat
Jammu, Sep 17
Categorically, the present payment systems of trundling files, receipts, and tokens back and forth made sagacity when one needed to verify physical files to ensure accountability. But in digitizing India, one should be using workflow-driven, internet-enabled IT platforms that share data with the consolidated fund of the state and authorized officials to verify and automate payments.
Whereas, these podiums can make sure that funds get to the intended recipient, and do it on the day of the fund request, thereby eliminating the need for maintaining bank accounts at any level.
However, as an alternative of allocating budgets through letters and files, endorsement limits can be set digitally which would ensure that agencies can withdraw funds only up to the authorized limit.
Consequently, it expresses that today we don’t need for a pay and accounts office in the government of India, a state government treasury, or the most opaque yet essential of instruments—the utilisation certificate or UC, a statement verifying a total amount that has been spent, without detailed line-item expenditures.
Meanwhile, IT platforms can contain withdrawal limits for each drawing and disbursing officer. Whereas once they are reached, the IT platform can automatically compile where funds were spent and send it to the auditors. IT platforms can be used to request authorization for more funds.
However, it is requisite to move from a convoluted, manually-driven system to an automated one that triggers just-in-time (JIT) fund release directly to beneficiaries, vendors, pensioners and employees has the potential to reduce India’s fiscal deficit by over Rs1.5 lakh crore, besides producing data analytics and transparency.
Pertinently, some states are also moving in the right direction. Kerala, Rajasthan and Karnataka, among others, have begun to put in place automated systems for public finance management.

 

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