The government is on the path of major changes in government financial management. From July 1, all government revenue and other receipts of the country are being brought under the 100% online 'A-Challan' system.
At the same time, the Ministry of Finance has decided to completely discontinue the manual challan system that has been in operation for many years.
The government claims that if this initiative is implemented, transparency in government financial management will increase, the actual position of cash will be known in real time and unnecessary debt dependence will be reduced.
The concerned officials believe that the government's cash flow management will be further strengthened if the government money spread across various banks comes under the central account.
This instruction has been given in a circular issued by the Government Debt and Financial Asset Management Sub-Division of the Finance Division of the Ministry of Finance.
The circular states that according to the Constitution and Treasury Rules, all government revenue and receipts are to be deposited in the Treasury Single Account (TSA) maintained at Bangladesh Bank.
But in reality, many departments are still using old manual codes and some institutions are illegally opening separate accounts in commercial banks and depositing government money.
The Finance Division says that due to the spread of government money in different bank accounts, it is becoming difficult to determine the actual cash balance of the government.
On one hand, this reduces transparency in financial management, and on the other hand, the money in the hands of the government is not being used effectively.
As a result, the government has to take high-interest loans from domestic and foreign sources to meet the needs of development expenditure and other sectors. At the same time, a huge amount of government money is lying idle in various bank accounts.
The concerned officials say that the Treasury Single Account (TSA) is basically a modern method of central cash management of the government.
Through this, all the income and expenditure of the government come under a central structure. In this, it is possible to know immediately how much cash the government has, where it is deposited and how much is being spent in which sector.
The government launched the 'e-Chalan' system for online submission of government revenue from the 2018-19 fiscal year. Citizens can deposit government fees, taxes, VAT, service charges and other amounts online through a 56-digit special code.
Through this system, it has become possible to deposit money through various digital channels without going directly to the bank. However, many government offices have not yet fully adopted this system. In some places, money is being deposited using old invoice books and manual codes.
Finance department officials believe that if the manual system is completely stopped, corruption, delays and accounting complexity will be greatly reduced. At the same time, the entire process of collecting government money will come under digital surveillance.
The circular mentions three important decisions.
First, the manual invoice system will be completely stopped from July 1, 2026, and all types of government revenue and receipts will have to be submitted 100% through 'e-invoice'.
Secondly, if any ministry, division, directorate or subordinate office keeps its own separate revenue collection system or software, it must be canceled immediately.
Third, all the money held in commercial banks in the name of government departments will have to be transferred to the Treasury Single Account of Bangladesh Bank by June 30, 2026, using the relevant economic code through 'e-challan'.
According to analysts, this is a major reform step in government financial management. For a long time, there was a lack of coordination in financial management as various government departments operated their own bank accounts.
Many times, it was not possible to know centrally how much money was deposited with any department.
Now, if all the money is transferred to TSA, the Ministry of Finance and Bangladesh Bank will be able to monitor government cash flow on the same platform. This will make expenditure planning and debt management more effective.
However, the challenges in implementation are not few. Many government offices in remote areas of the country have not yet come under the full digital infrastructure.
Many officials and employees are also accustomed to the manual method. As a result, those concerned believe that training, technical assistance and strict supervision will be required to implement 100% e-challan.
Finance Division officials say that if the government's cash comes under the single account, the need to take new loans will be reduced to some extent.
On one hand, the government often has idle money in banks, while on the other hand, it has to take loans to meet development expenses.
To eliminate this discrepancy, TSA-centric financial management is being strengthened. It is expected that this will reduce the interest expense on government loans and increase overall financial discipline.