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Public demands for transparent and accountable bureaucracy and increasingly dynamic environmental conditions have prompted the Government to implement cashless government system in order to modernize the transaction of the State Budget (Anggaran Pendapatan dan Belanja Negara - APBN). The cashless government system is considered as part of public innovation in order to encourage administrative reform efforts in public sector. Apart from the pros and cons that arise, the Government Credit Card (Kartu Kredit Pemerintah - KKP) policy is expected to be a strategic action in managing the state budget in accordance with the principles of flexibility, security, effectiveness and accountability. The literature study in this paper shows that the cashless government system can help optimize state budget, increase transparency in government spending, and minimize corruption. In a broader context, the system is expected to provide benefits in encouraging economic growth and improving public welfare.