ABSTRACT
Beginning late 1980s, as the winds of liberalization started sweeping the country, the first generation of applications to automate the functions in the finance domain started taking shape. Early efforts were focused on capturing data to create databases and use these for the generation of information systems. As computers started becoming ubiquitous in government offices, the functionalities of these applications were enhanced to automate functions and facilitate users to perform repetitive tasks that were hitherto completed manual. Thus, the automation of key functions such as obtaining estimates from spending units, compiling the budget, distributing funds, processing bills, and monitoring of expenditure to ensure optimal utilization and adherence to budget led to the digital transformation of the sector.
This chapter covers some of the key digitalization interventions in the finance domain by the central government. The section on budget computerization highlights the journey of its evolution from stand-alone to a web-based system encompassing all its functionalities, that is, capturing estimates from line ministries/departments, compiling budget documents, preparing detailed demands for grants, and the like. The chapter further details other key initiatives, namely, accounting and expenditure management, non-tax-revenue collection, pension accounting, and employee benefits payments initiatives.
The chapter attempts to present a holistic image of the impact that has been delivered by these transformation initiatives and vision for the future by harnessing the data captured over the years by using analytics and leveraging other emerging technologies such as artificial intelligence and blockchain.
