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E-Government, Government CFO, Tax and Revenue Management

Karnataka govt payments to go electronic

By Anshupriya Jha | 11 September 2011 | Views: 594

In a bid to increase transparency in its financial transactions, Karnataka, a State in the south of the country, has decided to launch an online treasury system called ‘Khajane 2’.

It is an extension of ‘Khajane’, a programme launched in 2001 to computerise all 216 treasury offices in the State.

The programme, to be implemented at a cost of Rs. 90 crore, will spend Rs. 60 crore on developing the necessary hardware and the remainder towards maintaining the system. It was approved by the State Cabinet at a meeting chaired by Chief Minister Sadananda Gowda in Bengaluru.

‘Khajane 2’ will be an integrated and fully automated financial management system which will generate real-time data. Under this system, most of the outgoing payments from government treasuries – including salaries of all government employees, payments to pensioners and beneficiaries of various welfare schemes as well as payments to service providers – will go electronic.

As all such payments will be made directly into bank accounts, it will usher into greater efficiency, transparency and accountability.

Under Khajane, started in 2001, all the 216 treasury offices were connected to a central server at the State Secretariat through VSAT (Very Small Aperture Terminal). It gives regular updates on the accounts of the State — expenditure as well as receipts — to the central server. It also generates receipts to the central server.

Khajane 2 will address the gaps in Khajane – higher maintenance cost, lack of security features which is a necessity given the current online threats and certain scalability and flexibility issues.

The new system will also be interactive, allowing sharing of data among various government departments and also with certain external bodies. This will also reduce any duplication of data.

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