The Role of Accounting Information System (AIS) in the Public Sector Budgetary Decision-Making Processes: Evidence from Bangladesh

Purpose: This study explores the role of Accounting Information Systems (AIS) in public-sector decision-making processes within the context of Bangladesh. The study has three primary objectives: to examine the role of AIS in budget planning, approval, and implementation. Design/Methodology/Approach: This study adopts an exploratory approach, collecting data from both primary and secondary sources. The objectives were logically addressed using evidence to analyze the role of AIS based on an input-output framework. Findings: The study revealed that the Accounting Information System (AIS) alone is not sufficient for an effective budgetary process. Budget planning is influenced by the strategic goals of ministries and political agendas. In contrast, the budget approval process is formal, legal, and largely routine. Notably, the use of AIS, particularly through the IBAS++ system, streamlines the process and minimizes time delays. However, the implementation process remains problematic due to significant variances between actual and budgeted outcomes. Practical Implications: The study highlights that budgets in state government policies are often used symbolically rather than instrumentally, primarily due to political affiliations. Modernizing the Accounting Information System (AIS) in public sector financial management can enhance accounting accuracy, accountability, and governance, particularly in developing economies like Bangladesh. Originality/Value: The effective use of information technology enhances service quality, streamlines administrative processes, reduces delays, minimizes budget variances, and improves public service delivery. While service quality in the public sector is not fully satisfactory, there is significant potential for advancing technology and ensuring its proper utilization in public services. This study contributes to the existing literature and opens avenues for future research. However, its scope is limited by the unavailability of secondary data and restricted access to government officials for in-depth interviews.