E-bill system will end ‘rent seeking’ in government contracts, says Sitharaman

New Electronic Bill (e-Bill) processing system will stop any possible ‘rent seeking’ in clearance of dues to contractors or suppliers to government departments, Finance Minister Nirmala Sitharaman said here on Wednesday.

The Minister launched the new mechanism while inaugurating foundation day event of Controller General of Accounts (CGA), the book keeper of the government. In her Budget speech, she had announced that as a further step to enhance transparency and to reduce delays in payments, a completely paperless, end-to-end online e-Bill System will be launched for use by all central ministries for their procurements. The system will enable suppliers and contractors to submit online their digitally signed bills and claims and track their status from anywhere.

Digitisation drive

While launching she said this will ensure end-to-end digitisation, make payment process transparent, by using technology not just within the Government departments, but extending the second leg to the citizens own use.Under the e-bill, she said, will shut even “any small window which is available” for “misuse in terms of rent seeking” as a contractor or supplier to Government will be able to file their claims digitally.”

It will be implemented across all central ministries and departments and suppliers and contractors will now be able to submit their claim online that will be trackable in real time basis. “Put your claim with digital signatures and you do not have to come to government offices. Your payment reaches (to you) as soon your claim reaches with digital signature,” Sitharaman said.

Giving details of the e-bill system, Additional Controller General of Accounts Dharitri Panda said currently the claimaints are required to submit physical copies of bills to the departments for scrutiny. With the e-bill initiative, claimants would be able to submit digitally signed bills on the PFMS and check status without approaching offices.

“The system will provide huge convenience to suppliers and contractors. It will have a shorter bill payment cycle, more effective audit trail... It will be an effective tool to facilitate uninterrupted Government disbursements in pandemic like situation,” she said.

Pilot basis

With the launch the e-bill, system has been rolled out on a pilot basis in eight ministries. The system will be implemented in all ministries and departments in phased manner in 2022-23.

The civil accounts officers, she said, have ensured that the common man who works with the government will not have to wait for months, or not even go and meeting officials, seeking release of their dues.

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