• Finance Minister said the use of Public Finance Management System (PFMS) will help in effective monitoring of the flow of funds to beneficiaries of different government welfare schemes.
• With the capability of providing real-time information, the web-based software app PFMS has potential to improve 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 cost.
• PFMS … would help in tracking and monitoring the flow of funds to the implementing agencies, adding that due to the monitoring of funds, “one can know the actual status of utilisation of funds by the multiple implementing agencies of the Central and state governments.

About PFMS:

• PFMS, earlier known as Central Plan Schemes Monitoring System (CPSMS), is a web-based online software application.
• It is developed and implemented by the Office of Controller General of Accounts.
• It is launched with the objective of tracking funds released under all Plan schemes of GoI, and real time reporting of expenditure at all levels of Programme implementation.
• In 2013, its scope was enlarged to cover direct payment to beneficiaries under both Plan and non-Plan Schemes.
• In 2014, it has been envisaged that digitization of accounts shall be achieved through PFMS.
• The biggest strength of PFMS is its integration with the Core banking system.
• Union Finance Ministry has recently ascertained the mandatory use of PFMS will help in monitoring the flow of funds to beneficiaries of different government welfare schemes.

Source:Indian Express