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<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head> <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0"> <tr> <td align="left" valign="top"> Mandatory Use of Public Finance Management System (PFMS) for all Central Sector Schemes Launched - (27 Oct 2017) </td> </tr> <tr> <td align="left" valign="top"></td> </tr> <tr> <td align="left" valign="top" style="background-color:#FDEDCE">The use Public Finance Management System has been made mandatory in order to ensure that, the benefits of the various Government Schemes reach to the intended beneficiary. The tracking and monitoring the flow of funds to the implementing agencies would become easier and ensure actual status of utilization of funds. Further, it would ensure transfer of funds in time. Implementation of Schemes through PFMS would bring transparency in system. During the launch, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, said that the ultimate purpose of implementing any Scheme is to ensure that, the benefits much reach to the last mile. The Finance Minister specifically mentioned about the implementation of various Schemes through Direct Benefit Transfer (DBT) mechanism in this regard. Direct Benefit Transfer (DBT) is transferring subsidies directly to the people through their bank/Post office account. It aims to timely transfer of benefit to the citizen by bringing efficiency, effectiveness, transparency and accountability in the Government system. Through the DBT Government intend to achieve electronic transfer of benefits, reduce delays in payments and most importantly, accurate targeting of beneficiaries, thereby curbing leakages and duplication.

The Union Finance Minister further said that PFMS, with the capability of providing real time information on resource availability, flows and actual utilization has tremendous potential to improve programme/financial management, reduce the float in the financial systems by enabling ‘just in time’ releases and also the Government borrowings with direct impact on interest costs to the Government. The Finance Minister said that, with the use of PFMS, there will not be much paper work and it would go a long way in monitoring and tracking of any unnecessary parking of funds by the implementing agencies and thereby minimizing the cases of delay and pending payments to a large extent. The Finance Minister hoped that, soon PFMS will progress towards a Government wide Integrated Financial Management System (GIFMIS) - as a comprehensive Payment, Receipt and Accounting System. The Finance Secretary said that as on date, payments to Rs. 34.19 crore beneficiaries have been made through PFMS and there are Rs. 21.72 lakh Programme Implementing Agencies registered on PFMS. This has been achieved on the strength of PFMS having an interface with 170 Banks including the Reserve Bank of India (RBI).

Controller General of Accounts (CGA) rolled out PFMS scheme as directed by Finance Ministry. In a scheme, money is transferred through multiple channels. PFMS is a common electronic platform for complete tracking of fund flows from the Central Government to large number of programme implementing agencies, both under Central Government and the State Governments till it reaches the final intended beneficiaries. The Scheme aims at promoting transparency and bringing about tangible improvements in the overall Central Government Financial Management. The PFMS covers Central Sector and Centrally Sponsored Schemes as well as other expenditures including the Finance Commission Grants.</td> </tr> <tr> <td align="left" valign="top" ></td> </tr> <tr> <td align="left" valign="top" >Tags : PFMS, Mandatory use, Central schemes</td> </tr> <tr> <td align="left" valign="top">&nbsp;</td> </tr> <tr>  <td align="left" valign="top">Source : newsroom.manupatra.com</td> </tr> <tr> <td align="left" valign="top">&nbsp;</td> </tr> <tr> <td align="left" valign="top">Regards</td> </tr> <tr> <td align="left" valign="top">Team Manupatra</td> </tr> <tr> <td align="left" valign="top">&nbsp;</td> </tr> </table> </div> </body> </html>