The Public Financial Management System (PFMS) after implemented on full scale will help Union Government to save a significant amount on interest costs.
It will allow the government to monitor and access the more than Rs.1 lakh crore of idle funds lying with it under various heads. Once government access these funds through PFMS, it need does not need to borrow that amount.
Government is planning to roll out this platform from next financial year i.e. April 2017 along with Goods and Services Tax (GST). It will be integrated with IT network of the GST.
What is Public Financial Management System?
- PFMS is an electronic fund tracking mechanism compiles, collates and makes available in real-time, information regarding all government schemes.
- Besides, it will significantly provide government real-time information on resource availability and utilisation across schemes.
- In addition it allow government expenditure to adopt a Just-in- Time (JIT) approach, with payments made only when they are needed.