e-payments scheme to be launched on Monday

New Delhi, Oct. 29: 

There is good news for contractors, government employees and retirees when the e-payments scheme in the works now gets off the ground.

Giving details about Electronic Payment Mechanism, Mr C.R. Sundaramurti, Controller General of Accounts (CGA), told newsmen that payments, salaries, pensions and other retirement benefits can be credited in bank accounts.

He said Central Government employees might start receiving SMS's soon from the government that salary has been credited in bank account. Even retired employees will not have to go to bank to enquire about their pension as they could also be alerted by SMS from the Government.

One of the biggest beneficiaries of the new payment mechanism could be the contractors. Since there will not be any human interface involved in the system, there will be no scope for giving bribery to get payments, the CGA added.

The new e-payment mechanism will be launched by the Finance Minister, Mr Pranab Mukherjee, on Monday. It will start with nine central departments. The aim is to include all central ministries — except Railways, Defence and Post & Telegraph — by March 31, 2012.

Expenditure tracking

The Government is also likely to make it mandatory to file expenditure in different Government schemes electronically.

Mr Sundaramurti said, “Once a particular department has utilised certain sum, then only next tranche can be released.” This will give a real time data about floating cash in government accounts, thus, bringing down borrowing. ‘We estimate this could result in interest saving of Rs 5,000 crore annually,” he said.

The pilot project for electronic filing of expenditure is on in four districts in four States. These projects have been proved successful, Mr Sundaramurti declared.

The scheme is a part of the Central Plan Schemes Monitoring System. With about 140-Centrally sponsored plan schemes and over 800 central sector schemes along with State Plan Schemes and additional Central assistance, the system intends to track disbursement of Rs 4 lakh crore to over 1.3 lakh agencies.

Courtesy : http://www.thehindubusinessline.com