1994-1995

The Ministry of Finance had bank accounts for tax collection and other revenues. Each ministry had its own bank account for expenses.

Every morning each ministry applied for funds to pay their bills. A special committee at the Ministry of Finance reviewed the applications and transferred approved sums to the ministries’ bank accounts from the Ministry of Finance’s bank account. Often the Ministry of Finance’s bank account was empty while the ministries’ bank accounts had healthy cash balances.

To improve this inefficient cash management system the idea of setting up the State Treasury unit in the Ministry of Finance was developed. In 1995, a special team was formed to set up the new State Treasury payment system and to develop cash flow management functionality.