Public Financial Management System Current Affairs - 2020
The Public Financial Management System (PFMS) portal has processed record Rs 71,633 crore transactions on a single day. This was a historical record breaking volume of digital transactions achieved by PFMS.
Public Financial Management System (PFMS)
It is end-to- end solution for processing payments, tracking, monitoring, accounting, reconciliation and reporting. It is implemented by Controller General of Accounts and administered by the Department of Expenditure, both in Ministry of Finance. Various ministries/departments utilise this platform to monitor utilisation of funds provided to the implementing agencies and states governments.
It provides unified platform to scheme managers for tracking releases and monitoring their last mile utilisation. It also provides single platform for efficient management of funds by tracking them and real time reporting of expenditure and receipts through treasury and bank interface. It is also used for Direct Benefit Transfer (DBT) payments under MGNREGA and other notified schemes of the Centre.
Tags: Financial Transactions • Government Schemes • Ministry of Finance • PFMS • Public Financial Management System
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.