Enhancing fund flow efficiency through just-in-time transfers in Odisha

• Jul 29, 2025
• 1 min

The Government of Odisha has one of India’s most developed treasury systems. However, challenges such as manual bill processing, idle fund accumulation, and poor fund utilization continued to affect the efficiency of public expenditure. These inefficiencies result in delayed payments and higher borrowing costs.

MSC partnered with the Odisha Finance Department to address these issues through the design and implementation of a Just-in-Time funding mechanism. The solution was built around the virtual treasury single account (VTSA) model, which enabled real-time, need-based fund transfers directly from the state treasury to beneficiaries’ bank accounts. This removed the need for advance fund allocations to implementing agencies, minimized float funds, and introduced a seamless, digital workflow. By automating the process, MSC helped eliminate manual interventions and established an efficient system of fund disbursement.

The VTSA-based Just-in-Time funding solution significantly improved the utilization and transparency of government funds. Departments gained greater visibility over their fund positions, which enabled better planning and budgeting. The initiative also reduced idle fund parking and helped the government optimize its borrowing by freeing up locked resources. Overall, the intervention has led to faster and more efficient delivery of payments and improved fiscal discipline across departments.

The Gates Foundation commissioned the project.