Recently, the Union Minister for Finance & Corporate Affairs launched the Electronic Bill (e-Bill) processing system, announced in the Union Budget 2022-23.
Context
Recently, the Union Minister for Finance & Corporate Affairs launched the Electronic Bill (e-Bill) processing system, announced in the Union Budget 2022-23.
What is an e-Bill processing system?
- The e-Bill Processing System is a step towards enhancing transparency, efficiency and a faceless-paperless payment system.
- Now suppliers and contractors will be able to submit their claims online, which will be tracked on a real-time basis.
- Currently, the suppliers of various goods and services to the Government have to submit physical, ink signed copies of their bills to the respective Ministries/Departments/offices of the Government of India.
- e-Billing is a way of transacting bills digitally rather than the traditional use of paper.
- Customers can get their bills online, via email, or in machine-readable data forms when billed electronically.
- As e-Billing is time efficient, this would be a quick and simplified way better fitted to the government’s call for making India digital. It would also reduce errors.
- Under the newly launched e-Bill system, vendors/suppliers can upload their bills online along with supporting documents from the convenience of their homes/offices at any time through digital signature.
- The e-Bill system has been rolled out on a pilot basis in eight ministries.
- It will be implemented in all ministries and departments in a phased manner in 2022-23.
- E-bill system is part of Ease of Doing Business (EoDB) and Digital India Eco-System’ to bring in broader transparency and expedite the process of payments.
- This is developed by the Public Financial Management System (PFMS) Division in the office of the Controller General of Accounts in the Department of Expenditure, Ministry of Finance.
Advantages
- It will stop any possible ‘rent seeking’ in the clearance of dues to contractors or suppliers of government departments.
- It will ensure end-to-end digitisation and make the payment process transparent by using technology not just within the government departments, but extending the second leg to the citizen’s use.
- It will shut even “any small window which is available” for “misuse in terms of rent-seeking”, as a contractor or supplier to the government will be able to file their claims digitally.
- Currently, the claimants are required to submit physical copies of bills to the departments for scrutiny.
- It will have a shorter bill payment cycle, a more effective audit trail.
- It will be an effective tool to facilitate uninterrupted government disbursements in pandemic-like situations.
