The Karnataka government on Tuesday signed a contract with Tata Consultancy Services for a software solution facilitating integrated financial management of all spending and resource mobilisation of state treasury funds.

Under the programme, 'Khajane-II', a major e-governance initiative, the government is looking to facilitate the state's development through efficient, effective and transparent management of public finances and to strengthen accountability, Finance Department Principal Secretary L V Nagaraj said.

Khajane-II seeks to take e-governance to the next level following implementation of the government's Khajane-I programme over the last ten years since 2001.

A pilot project under the Khajane-II programme will be completed by next April and the final project will be rolled out by April, 2013, TCS Vice-President Tanmoy Chakraborthy said.

Chief Minister D V Sadananda Gowda wanted TCS to advance the deadline for implementation of Khajane-II ahead of the 2013 Assembly polls in the state.

When fully operational, Khajane-II will provide a daily synopsis of activity in the accounts of the state government and an online system for release of funds, salary payments and pension payments. All transactions would be through an electronic clearing service (ECS) mechanism, obviating the need for the 80 lakh challans used currently for transactions.

The treasury and banks will interact online through a secure network and share information in a real-time environment.

Nagarajan and Chakraborthy inked the contract at a ceremony where Additional Chief Secretary K Jairaj was also present.