According to the order #483 of the Minister of Finance as of 15 June 2010 State Treasury electronic service system was implemented. By the order #578 of the Minister of Finance of Georgia as of 14 July 2010 an instruction “On State Treasury Electronic Service System” was approved. Organizations served by State Treasury stage-by-stage moved to the new type of service (in Tbilisi, as well as in regions).
Since 1st of January, 2011, circulation of payment documents between organizations served by State Treasury and the Treasury Service works only electronically. As a result of the transition to the new system in the process of budgetary resource management paper-based documents’ flow between spending organization and the Treasury Service was eliminated totally, thus resulted in significant saving of time and financial resources, as well as improved service quality and enhancement of transparency level of the processes.
Activities to be implemented in the framework of reform in the system if electronic service of State Treasury:
In Georgia, the number of transactions with budget amounts has sharply increased in accordance with the increase of state budget. Besides, as a result of development of electronic payment infrastructure, big part of banking services moved to electronic service, thus the system of the State Treasury could no longer meet the existing demands from the point of view of efficiency. Based on the above mentioned, it was necessary to provide the consumer with the service which would fully satisfy time-related demands. The so-called “greed corridor principle” was introduced for the purpose of efficient performance of treasury operations; it implied automated processing (without the interference of treasury operator) of the payment document, registered in the informational system of the Treasury and settlement of accounts in real time.
Introduction of the principle of green corridor significantly speeded up performance of payments; in particular, the number of transactions in the period of issue of labor remuneration (salaries) has increased by 50% due to green corridor.
Setting up of electronic service with Revenue Service
Setting up of electronic service with Revenue Service is planned from 2012, which implies abolishment of circulation of hard copies of documentation and performance of operations, namely: return of excessively paid amounts; transfer of payment from one type to another type; correction or return of mistakenly paid tax; performance of return or transfer to budget of the amounts placed in the form of deposits through electronic payment documentation.
Introduction of the mentioned service will result into saving of time and improvement of the quality of service.
Programs for Management of Domestic Public Debt and Budget Loans
Public debt accounting and management system shall be created, which will significantly simplify public debt management. At present the program is in the process of testing, which will finish by the end of 2011.
Activities were started in 2010 and this year electronic informational system of loan management and monitoring was put into operation, which reflects detailed information on loans issued from domestic credit resources of the state in accordance with the form, approved by the Minister of Finance of Georgia by the order "On Approval of the Rule of Maintenance of the Register of Loans, Issued from the State Budget and the Form of Register”. On the basis of information, entered in the software, reports of several types could be obtained: report according to loans issued to each enterprise (each loan beneficiary), detailed report for each loan, as well as separate loans by selection. Introduction of the mentioned system will further simplify the process of loan management and monitoring.