Patna: Deputy chief minister Sushil Kumar Modi on Wednesday launched the comprehensive finance management system that will replace the existing comprehensive treasury management information system and put the entire functioning of government departments online.

Modi heads the finance department.

The new system entails online preparation of the budget, expenditure management, sanction and approval of funds, bill preparation and other government-related works. The finance department will roll out the new system in two phases; the second phase is to be implemented in September this year.

The new system would make the functioning of 44 government departments, 98 directorates, 77 treasuries and works of more than 12000 drawing and disbursing officers online.

The Telegraph had reported the state government's plan in November last year.

Addressing senior government officials at the launch function, Modi spoke at length about the benefits of the new system and urged officials to play a proactive role for smooth transition to the new system.

The introduction of the new system will do away with the existing system where online sanctions made by the drawing and disbursing officers have to be accompanied by the hard copy of the order carrying the signature of the officer concerned for release of funds from the treasury.

Under the new system, there will be no need to have any hard copy of the sanction order. The officer concerned will have to put a digital signature on the sanction order for getting funds released from the treasury. Details of vouchers showing the items purchased using government funds will also be available online.

The new system will also be used in budget making as all departments will present their demand notes using the system and based on those demands the final draft of the budget will be be prepared.

The state government roped in software major TCS for setting up the new system for Rs 130 crore.

Before the launch, the finance department organised a series of training programmes for government officials. More such programmes are in the offing.

At Wednesday's event, Modi also launched GeM (government e-market) system, which entails procurement of items for government departments online using the GeM portal. The aim is to end the direct interface between suppliers and government departments and make procurements transparent.

Modi said as the prices of items were lower than the market rate on the GeM portal, the new system would help in reducing government expenditure.