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Finance and Accounting Manual for the Royal Government of Bhutan

Bank Accounts for Budgetary Operations

The Finance and Accounting Manual for the Royal Government of Bhutan outlines key points related to bank accounts used for budgetary operations. Below are the main components of these accounts.

Government Consolidated Account

  • This is the principal account maintained with the Royal Monetary Authority (RMA), representing the total fund available for budgetary operations.
  • It serves as a central hub for all financial transactions related to government activities.

Agent Banks

  • The Ministry of Finance and RMA appoint Agent Banks to manage budgetary operations on behalf of the Government.
  • These banks facilitate receipt of government funds in the Government Consolidated Account, ensuring efficient management of public finances.

Subsidiary Principal Accounts

Government Revenue Account

  • Operated by the Department of Revenue & Customs (DRC) for accounting of all revenues earned by the Government.
  • This account ensures accurate recording and tracking of government income.

Government Budget Fund Account

  • Operated by the Department of Budget & Accounts (DBA) for facilitating account keeping in respect of receipts, borrowings, and other budgetary operations.
  • It plays a crucial role in managing the Government’s finances and ensuring compliance with accounting regulations.

Non-Revenue Receipts & Deposits Account

  • Maintained by DBA to make non-budgetary receipts available to Budget Agencies.
  • This account facilitates the processing of non-revenue related transactions, such as grants or loans.

Letter of Credit Accounts

LC (Letter of Credit) Account

  • Opened for facilitating withdrawal of government funds by Budget Agencies.
  • It enables authorized personnel to access government funds for specific purposes.

PLC (Project Letter of Credit) Account

  • Opened when the quantum of external grant to a project is substantial and expected to run over more than one fiscal year.
  • This account ensures effective management of project-related finances and compliance with accounting regulations.