Function of Treasury

Special reference to State of Jharkhand

Treasury :- Treasury is a wing of ministry of finance under administrative control of Collector of
any district to receive deposit and permit withdrawal from the public account of
province .
Treasury is generally headed by a treasury officer who serves under the collector of the
district .
No money can be deposited or withdrawn from the public accounts of province
without express order of treasury officer.
Budget :- Budget is an estimation of receipts and expenditure of a state for a particular financial
year .
All receipts and payments as estimated in the budget are routed through Treasury .
Initially treasuries had two section
(i) Accounts Section
(ii) Cash Section
Means cash was directly received and paid at the treasury counter .
But since the development of Banking system responsibilities of cash section was under
taken by State Bank of India .
Now a days Treasury accord permission to receive or pay any amount and after getting
permission SBI receives or pay the amount respectively .
Generally there is one treasury in one district but on demand of situation one or more
treasury or sub treasuries can be opened to impart the function of receipt and payments
.
Jharkhand :-

There are 32 Treasuries and Sub Treasuries in Jharkhand . 26 Treasuries and 6 sub
treasuries .
Function of Treasuries :-
Receipts - Any money which is to be deposited in public account of the State will be
deposited through a challan . Depositor will produce a challan at the counter of treasuries . Treasury
Officer after checking the entries of challan and being satisfied put his signature on challan as a mark
of his permission/ direction to SBI to receive the amount . After getting permission the depositors
present the same to counter of SBI and the bank receive the money on behalf of Treasury .

Payment :-
Any Payment which is due to any Government Servant will be claimed by the Govt.
Servant through bill .
Bill will be presented on Treasuries and the Treasury Officer after verifying the
following facts pass the bill and send the same to SBI for payments .

Facts :-
(1) Signature of drawer tallies with specimen kept as record at Treasury .
(2) Bill has been drawn on proper head .
(3) Amount has been allotted by Govt. to the officer concern .
For each payment the Treasury will send an advice to SBI .Previously it was
sent under sealed envelope but now a days it is sent online .
In State Govt. specially Jharkhand state, all receipts and payments are routed through
Treasuries .
(1) Treasuries are paying salaries to about 3.5 lacs employees every month .
(2) Nearly one lac pensioners are getting pension from different bank through
Treasuries .
(3) Apart from salaries and pension all other expenditure such as contigent
expenditure . Expenditure related to social securities are routed through treasuries .
Before 1996 operation of treasuries are purely manual . From 1996 to 2004 it was
partially computerised .
In the year 2005 Dhanbad Treasury in the State of Jharkhand was made fully
computerised . Now all receipts and payments are being done online .
For online functioning of on Treasuries a software has been designed by NIC which is
known as (KUBER) .This software has two programming languages for starting asp.net and for
database Oracle has been used . For successful run of this software windows and Internet Explorer is
required .
Now all bills are prepared at drawing disbursing officer level and sent to treasuries
online along with hard copy .
Treasury assistant after checking the bill create an advice on his own user ID and send
it to accountant through his own password . Accountant after checking the same passes it on to
Treasury Officer . Treasury officer after being satisfied order for payment and send the advice online
through his own password to SBI and the passed bill (hard copy) is hand over to the messenger of
drawing disbursing officer for presentment of the same to the counter of SBI .
Bank after verifying the advice no. written on hard copy of bill and advice sent online
to the bank pays the bill .
At the end of the month a detail accounts of all receipts and payments is prepared by
Treasuries and the same is presented to Collector for his approval . After getting approval the accounts
is submitted to Accountant General . Who in turn prepare a consolidated A/C of the state and submit
the same to ministry of finance of Govt. of Jharkhand .