Implementing Unit Based

Budgeting in Defence
Existing Manual Practice of Budget
Distribution in Defence (Army)
 The Budget Directorate distributes pay and TA/DA budget among three accounts offices:
 Finance Controller, Pay 1 (for payment of army officers)
 Finance Controller, Pay 2 (for payment of JCO ORs)
 Finance Controller, Misc (for payment of civilians)
 Senior Finance Controller, Defence Purchase deals big purchases
 Although pay and TA/DA budget is not distributed unit-wise, some other elements (like
Training Grant, small procurements) of the budget distributed among the units and
respective Area Finance Controller is notified.
 Problem arises when one pay point spends more budget than manually allocated and the
other is deprived due to exceeding the total budget.
Existing Manual Practice of Budget
Distribution in Defence (Navy and Air)
 Bangladesh Navy spends all pay related budget through Senior Finance Controller, Navy
 Bangladesh Air Force spends all pay related budget through Senior Finance Controller, Air
Force
 Although pay and TA/DA budget is not distributed unit-wise, some other elements (like
Training Grant, small procurements) of the budget distributed among the units/bases and
respective Area Finance Controller is notified.
 Problem arises when one pay point spends more budget than manually allocated and the
other is deprived due to exceeding the total budget.
Key Design Issues

 Security and confidentiality of defence forces.

 Frequent creation and dissolution of units/bases.
 Due to frequent movements of troops among units/bases, it is difficult to estimate unit-
wise pay and allowances for a unit.
Solution 1: Creating organizational codes for
units in BACS
Advantages:
 Unit-wise budget control can be implemented

Disadvantages:
 Units are created and dissolved frequently.
 As classification is an open document, security may be an issue.
 The same unit will have to be linked with multiple pay points for different types of
expenditures.
 As payment is made centrally, it will be difficult for Budget Directorate to distribute pay
budget unit-wise.
Solution 2: Creating organizational codes for
units in side tables (outside BACS) and
implement use of contingency budget control
Key Features:
 Shadow organization codes will be created against accounts offices.
 Secrecy will be maintained through using, as code names for units
 API will be established with Army database
Solution 2: Creating organizational codes for units in side tables
(outside BACS) and implement use of contingency budget control

Advantages:
 Shadow organization codes will be created against accounts offices.
 Unit-wise budget control can be implemented
 Secrecy will be maintained, as code names will be used for units

Disadvantages:
 Units are created and dissolved frequently.
 The same unit will have to be linked with multiple pay points for different types of expenditures.
 New functionality for budget distribution and control will have to be developed in iBAS++
 API will need to be developed for Army systems
Solution 3: Creating organizational codes to
represent accounts offices and distribute
contingency budget among units
 Shadow organization codes will be created against accounts offices.
 For example, for under Bangladesh Army, new organization codes will be created for:
 Officers’ Pay for Bangladesh Army
 Staff Pay for Bangladesh Army
 Civilian Pay for Bangladesh Army

 For contingency heads, iBAS++ will provide option for distributing and controlling budget
among imprest holders (DDOs)
 Existing Classification for Organization for Bangladesh Army (1)

11906     Bangladesh Army

  1190601   Bangladesh Army
    1190601104233 Bangladesh Army
    1190601104234 Military Dairy Farm
    1190601104235 Military Engineering Service, Army
  1190602 Director of Works & Chief Engineer (Army)
  1190602104236 Director of Works & Chief Engineer (Army), Head Quarter
  1190602104237 Garrison Engineer (Army), Central Dhaka
  1190602104238 Garrison Engineer (Army), South Dhaka
  1190602104239 Garrison Engineer (Army), North Dhaka
  1190602104240 Garrison Engineer (Army), Mirpur, Dhaka
  1190602104241 Assistant Garrison Engineer (Army), CMH, Dhaka
  1190602104242 MES Cell, DGFI
  1190602104243 Garrison Engineer (Army), Chittagong
  1190602104244 Garrison Engineer (Army), Ramu, Cox's Bazar
  1190602104245 Assistant Garrison Engineer (Army), Halishahar, Chittagong
 Existing Classification for Organization for Bangladesh Army (2)

  1190602104246 Assistant Garrison Engineer (Army), Bhatiary,

Sitakunda
  1190602104247 Assistant Garrison Engineer (Army), Bandarban
  1190602104248 Assistant Garrison Engineer (Army), Rangamati
  1190602104249 Assistant Garrison Engineer (Army), Khagrachhari
  1190602104250 Garrison Engineer (Army), Bogra
  1190602104251 Garrison Engineer (Army), Saidpur, Nilphamari
  1190602104252 Garrison Engineer (Army), Rangpur
  1190602104253 Assistant Garrison Engineer (Army), Rajshahi
  1190602104254 Assistant Garrison Engineer (Army), Parbatipur,
Dinajpur
  1190602104255 Assistant Garrison Engineer (Army), Qadirabad,
Pirganj, Rangpur
 Existing Classification for Organization for Bangladesh Army (3)

  1190602104257 Garrison Engineer (Army), Ghatail, Tangail

  1190602104258 Garrison Engineer (Army), BOF Gazipur
  1190602104259 Garrison Engineer (Army), BBS
  1190602104260 Garrison Engineer (Army), PMB
  1190602104261 Garrison Engineer (Army), Jessore
  1190602104262 Assistant Garrison Engineer (Army), Lebukhali,
Dumki, Patuakhali
  1190602104263 Assistant Garrison Engineer (Army), Momenshahi
  1190602104264 Assistant Garrison Engineer (Army), Rajendrapur
  1190602104265 Assistant Garrison Engineer (Army), Jahanabad
  1190602104266 Garrison Engineer (Army), Comilla
  1190602104267 Garrison Engineer (Army), Jalalabad, Sylhet
  1190602104268 Garrison Engineer (Army), Sylhet
 Proposed Classification for Organization
11906     Bangladesh Army
  1190601   Bangladesh Army
    1190601109901 Officers’ Pay for Bangladesh Army
    1190601109902 Staff Pay for Bangladesh Army
    1190601109903 Civilian Pay for Bangladesh Army
  1190601109904 Bangladesh Army, Chottogram
  1190601109904 Bangladesh Army, Jahanabad
  1190601109904 Bangladesh Army, Rangpur
 

Navy and Air Force does do not require new organization code
Proposed Workflow for Bangladesh Army

 In the published budget, allocation will be against ‘Bangladesh Army’

 Army Budget Directorate will distribute the budget among different areas (e.g. Pay 1,
Jahanabad etc)
 Budget check will be done as usual while recording pay and allowance expenditure
 For contingency expenditure, budget allocated against Unit/Imprest Holders will also be
checked
 The same mechanism will be used for Air Force and Navy
Advantages and Disadvantages of Solution 3

Advantages:
 For pay and TA/DA, pay point wise budget control will be implemented.
 Imprest holder-wise (in addition to pay point-wise) budget control will be implemented for
contingency

Disadvantages:
 New functionality for imprest holder (DDO) wise budget distribution and control will have
to be developed in iBAS++.
Thanks You