Center government made it compulsory to use Public Finance Management System (PFMS) for all of its schemes. The announcement was made by Finance minister Arun Jaitley. Budgetary outlay of all the central schemes for which use of PFMS is mandatory accounts for over 31 per cent of the central government’s total expenditure during the current financial year 2017-18.
Mandatory PFMS Benefits
It was said by finance minister Arun jaitley that mandatory use of PFMS will make it sure that the benefits of all government schemes will reach to the last mile.
Launching the compulsory utilization of the tracking and monitoring framework, FM Jaitley hoped that PFMS would advance towards a Government-wide Integrated Financial Management System (GIFMIS) – as a comprehensive payment, receipt and accounting system.
Using the new system will it will be easy to track and monitor the fund flow to the implementing agencies. Government will be in a position to ascertain the real status of use of funds by the various implementing agencies working under central and the state governments.
PFMS have the ability to present real time data on availability of resources, flows and actual utilization. This will be really helpful in improving programme or financial management.
There will be less need of paperwork and government will be able to monitor unnecessary parking of funds by the implementing agencies in a much better way with mandatory PFMS. Delay in cases and pending payments will be reduced to a large extent.
What is Public Finance Management System (PFMS)?
Public Finance Management System (PFMS) scheme was launched by Controller General of Accounts at behest of Union Finance Ministry, Department of Department of Expenditure. It compiles, collates and provides in real-time information on all government schemes. It is a kind of fund tracking system. Its aim is to provide transparency and to improve overall Central Government Financial Management and also to implement government schemes all over the country.