iBAS++ Scheme at a Glance

Background and Rationale for Implementation of BACS & iBAS++ Scheme

The journey of Public Financial Management (PFM) reform in Bangladesh began in 1989 with the formation of the Committee on Reform in Budgeting and Expenditure Control (CORBEC). Based on CORBEC's recommendations, the Reform in Budgeting and Expenditure Control (RIBEC) project was launched in 1993 and completed in 2001. During RIBEC, a 13-digit classification chart was introduced in FY 1997–98, automation in fund release and reconciliation began, and Management Accounting Units (MAUs) were established in large ADP-implementing ministries to improve accounting processes.

In 2003, the Finance Division initiated the Financial Management Reform Program (FMRP). Under this initiative, the Medium-Term Budget Framework (MTBF) was introduced in FY 2005–06, and the Integrated Budget and Accounting System (iBAS) was implemented in FY 2006–07. Later, in 2010, the Finance Division launched another project titled “Deepening MTBF and Strengthening Financial Accountability (DMTBF)”, which aimed to develop and implement a new classification system and transform iBAS into a centralized, internet-based platform for online budget distribution, fund release, and real-time budget checks during payment processing. Although DMTBF concluded in June 2014, many of its key activities remained incomplete.

To carry forward the unfinished work, the Finance Division launched the Public Expenditure Management Strengthening Program (PEMSP) in 2015 with GoB funding. Its main objective was the development and implementation of iBAS++ and BACS. Although PEMSP achieved many outputs, PFM reforms in Bangladesh reached a transitional stage. At this point, iBAS++ and BACS became ready for nationwide rollout and to improve citizen service delivery. To fully realize the returns on past investments, continued technical support became essential.

To accelerate PFM reforms, the Finance Division formulated the PFM Reform Strategy 2016-2021 and the PFM Action Plan 2018-23 and 2024-28, implemented through the Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS). As continued enhancement and expansion of iBAS++ and BACS are prerequisites for SPFMS implementation, a dedicated scheme titled "Improvement of Public Financial Service Delivery through Implementation of BACS & iBAS++" was introduced.

Objectives of BACS and iBAS++

• Enhance decision-making capacity and transparency in budgeting through timely preparation of detailed budget reports.

DLI and DLR Relevant to the Scheme

SPFMS includes 10 Disbursement Linked Indicators (DLIs) and 45 Disbursement Linked Results (DLRs). Of these, DLI-4 and DLI-8 pertain to this scheme:

DLI-4:

Implementation of the Treasury Single Account (TSA) and reliable, timely payments through automated methods for salaries and supplier bills.

• DLR 4.1: A stock-take of special accounts (including the number opened annually in previous years), and Extra-Budgetary Funds (outside TSA). ($2M)
• DLR 4.2: 50% of government payment transactions executed through EFT in the relevant fiscal year. ($3M)
• DLR 4.3: 40% of Drawing & Disbursing Officers (DDOs) submit all bills online. ($2M)
• DLR 4.4: 50% reduction in newly opened special accounts (outside TSA). ($2M)

DLI-8:

Effective and transparent use of financial data by budget holders in Ministries, Divisions, and Agencies (MDAs).

• DLR 8.1: Budget released on BACS for FY 2018–19 (or relevant FY). ($2M)
• DLR 8.2: 3 priority iBAS++ interfaces implemented and operational. ($2M)
• DLR 8.4: iBAS++ in use by 4 Self-Accounting Entities (SAEs). ($2M)
• DLR 8.5: Finance Division publishes quarterly budget execution reports online. ($2M)
• DLR 8.6: 60% of budget holders generate 10 or more monthly iBAS++ reports for decision-making. ($2M)

Scope of the Scheme

iBAS++ is the Government of Bangladesh’s Integrated Financial Management Information System (IFMIS). It plays a central role in the PFM reform agenda by ensuring real-time, transparent, and detailed financial reporting. It captures all government revenues and expenditures and provides up-to-date data on resource availability for service delivery.

Through EFT integration, it enables quick payment to government employees, suppliers, and beneficiaries under social safety net programs. The system comprises modules covering budget preparation and management, expenditure and payment, accounting and reporting, revenue and receipts, pensions, and human resource management. Over 600 types of reports can be generated for decision-making, accounting, and audit purposes.

Since July 2020, 8 MISs related to social safety nets have been transferred to this scheme, which is crucial for transparent, effective financial management and faster service delivery to citizens.

Key Achievements of the Scheme

• Introduction of the new BACS for budget preparation, implementation, accounting, and reporting.
• Implementation of the A-Challan system, integrating government revenue collection and reducing fraud by enabling real-time deposit into the treasury. It covers 202 types of revenue/fees (e.g., VAT, passport fees, land development tax, withholding tax). In FY 2024–25, about BDT 2,65,708 crore—approximately 70% of total revenue—was collected via A-Challan.
• All government employees, including defense personnel, are receiving salaries via EFT.
• 2.73 crore beneficiaries under 25 social safety net programs across 8 ministries/divisions received BDT 13,030 crore in FY 2024–25 via EFT.
• 159 autonomous agencies and 352 projects currently use the PL Account sub-module in iBAS++.
• A Personal Ledger (PL) account under the “Public Account of the Republic” was introduced in 2019 to strengthen the TSA and reduce interest burden. A new sub-module in iBAS++ captures account details of all government offices. So far, 87,273 out of 90,452 offices have entered around 1,95,188 bank account details into the iBAS++ system
• A separate Organogram sub-module was developed to track sanctioned manpower, including designations, grades, and posts. It can be used interoperably by the Cabinet Division, MoPA, Finance Division, line ministries, and departments.
• Work is underway to incorporate revenue and expenditure data of about 5,800 LGIs into iBAS++ to enable digital financial management, promote transparency, and support budget preparation. Future plans include integrating LGIs with the TSA via LFD accounts and using iBAS++ for transfer disbursement.
• Public Asset Registry (PAR), a digital database within iBAS++, is being implemented to manage government non-financial assets (e.g., buildings, land, vehicles). It will improve maintenance, risk management, leasing/sale decisions, and transparency in asset use.
• 5 Self-Accounting Entities (SAEs) (PWD, Roads & Highways, Forest, Railway, DPHE) are using iBAS++; implementation is ongoing in Railway and Postal Department.
• 4,263 field offices have prepared budgets online through iBAS++.
• 51 out of 78 foreign missions have implemented iBAS++; the rest are in progress.
• Quarterly and annual budget execution reports are regularly published on the Finance Division’s website.
• iBAS++ complies with modern cybersecurity standards, including access control, encryption, and regular audits. On 5 March 2024, it received ISO/IEC 27001:2013 certification, and has since transitioned to the ISO/IEC 27001:2022 version, marking international recognition of its security capabilities.