What is PFMS
PFMS, or the Public Financial Management System, stands for a web-based software application developed and implemented by the Controller General of Accounts (CGA) under the Department of Expenditure, Ministry of Finance, Government of India. This online platform is dedicated to enhancing the efficiency of fund management by monitoring, tracking, and reporting financial transactions. Its overarching goal is to introduce transparency, accountability, and prompt benefit transfers to citizens, thus enhancing the overall efficiency and effectiveness of the system.
Purpose of PFMS
Fund release management: PFMS focuses on efficiently managing the release of funds, ensuring a systematic and organised allocation process.
Execution of government schemes: One of the primary purposes is to oversee the effective execution of various government schemes, optimising their impact and outcomes.
Direct subsidy transfer: PFMS employs a strategy of directly transferring subsidies to individuals through their bank or post office accounts, minimising delays in payment processes.
Precision in beneficiary targeting: The system aims to achieve precise targeting of beneficiaries, preventing leakages and duplications in subsidy distribution.
Reduction of payment delays: By facilitating direct transfers, PFMS actively works towards reducing delays in subsidy payments, contributing to a more efficient financial ecosystem.
Curbing leakages and duplications: PFMS plays a key role in curbing leakages and duplications in subsidy distribution, ensuring that benefits reach the intended recipients accurately.
Monitoring social sector programs: The system is instrumental in monitoring and overseeing social sector programs, enhancing the government's ability to track and manage funds disbursed for these initiatives.
Responsibilities of PFMS
Fund flow management: PFMS is tasked with efficiently managing the flow of funds, ensuring a streamlined process from allocation to disbursal.
Timely and accurate payments: One of PFMS's key responsibilities is to guarantee timely and accurate payments, eliminating delays and errors in financial transactions.
Monitoring and reporting platform: PFMS serves as a robust platform for effective monitoring and reporting of financial transactions, enhancing transparency and accountability.
Direct subsidy transfers: The system plays a pivotal role in directly transferring subsidies to individuals through their bank or post office accounts, reducing delays and ensuring precision in beneficiary targeting.
Preventing leakages and duplications: PFMS contributes significantly to curbing leakages and duplications by accurately targeting beneficiaries and minimising discrepancies in subsidy distribution.
Program monitoring in the social sector: PFMS enables the government to monitor programs in the social sector, ensuring that funds are disbursed efficiently to support the intended initiatives.
Centrally sponsored schemes monitoring: The system provides an effective tool for monitoring centrally sponsored schemes, ensuring that funds are utilised in line with the designated objectives.
Central sector schemes oversight: PFMS extends its monitoring capabilities to central sector schemes, contributing to the overall effectiveness and success of government initiatives.
Direct benefit transfer facilitation: PFMS facilitates the direct transfer of benefits to citizens, aligning with the government's commitment to timely and efficient delivery of services.
