State-run Bangladesh Railway (BR) will launch its accounting reform this year as it is set to enter into the government's "iBAS" system aimed at ensuring transparency.
Launched in 2005, the Integrated Budgeting and Accounting System (iBAS) is a centralised online system, which allows budget preparation and its distribution, fund release, online submission of bills and others.
The BR is an autonomous body of the government that does not require prior permission for purchase and payment to its contractors and other parties.
Officials familiar with the matter at the ministry of finance (MoF) told the FE that the centralised system will bring transparency in the BR transactions.
"As a part of accounting reforms, the iBAS++ will be rolled out by June this year," a senior railway ministry official told the FE.
Officials at the project said it will require no amendment to the existing law that empowers a government agency to make direct purchase or payment.
They said they have already made such reforms in three other 'self-accounting entities' such as public health, public works and roads and highways.
It is alleged that the agency even does not deposit its earnings from ticket sales to the central bank, where the government maintains an account meant for receiving money from different sources.
Besides, it invites tenders for the procurement of goods or services in many cases bypassing the budget limit, project officials noted.
"Currently we don't see transactions of the BR, they submit a summary at the end of month," said an official at the government's public expenditures strengthening project.
Monitoring of daily development in terms of cash and inventories will be strengthened after the introduction of the system, they said.
Under this programme, the salary and allowances of the BR's staffers will be paid through electronic payment. Currently employees of other departments get salaries through the electronic fund transfer.
The payment for the BR's contractors will also be paid through non-cash/cheque systems.
Currently there exists cash payment within the BR system.
In the meantime, the finance division and the BR high ups will meet on the matter on February 25 to finalise it.
The BR is now implementing a number of projects funded by the government and the external development partners.
It has spent Tk 141 billion in 64 projects since 2013.
However its operating revenues was Tk 1.31 billion in fiscal year 2018, although its operating expenses were higher (Tk 28.4 billion) than its income, according to Economic Review-2018.
The BR through its two zones carried 10,040.66 million passengers during 2017-18. It also carried 1,052.67 million tonnes of goods during the same period.
Rail transport in Bangladesh began on November 15 in 1862 when 53.11 km broad gauge line was opened between Darshana in Chuadanga District and Jogotee in Kushtia District.
On January 4, 1885, a further 14.98 km 1,000 mm metre gauge line was opened.
