Public Financial Management System

Public Financial Management System

The Public Financial Management System (PFMS) is a web-based online software application, developed and implemented by the o/o CGA with technical support of NIC. The primary objective of PFMS is to facilitate a sound Public Financial Management System for Government of India (GoI) by establishing an efficient fund flow system as well as a Payment cum Accounting network. PFMS provides various stakeholders with a real time, reliable and meaningful Management Information System and an effective Decision Support System (DSS), as part of the Digital India initiative of GoI.

The biggest strength of PFMS is its integration with the banking network  in the country. As a result, PFMS has the unique capability to push online payments to almost any beneficiary/vendor having account in any bank across the country.. At present, PFMS interface is completed with the Core Banking System (CBS) of all Public Sector Banks (26), Regional Rural Banks (54), major private sector banks (14), Reserve Bank of India, India post and Cooperative Banks (55).

The Government has emphasized the need for improved financial management in implementation of Central government Schemes so as to facilitate Just-in-time releases and monitor the usage of funds including information on its ultimate utilization.  In order to abide by the directions to implement Just-in-Time releases and monitor the end usage of funds, an action plan for universal roll-out of PFMS for Central Government schemes has been approved which inter alia includes mandatory registration of all Implementing Agencies on PFMS and mandatory use of Expenditure Advance and Transfer(EAT)module of PFMSW by all IAs.

Achievements under PFMS:

PFMS has been fully implemented at the Central Government level for all Plan and Non Plan Scheme releases from Civil Ministries / Departments of the Central Govt.

The Implementing Agencies are using the PFMS application for both transfer of funds to Agencies below and for e-payment to beneficiaries by direct credit to their accounts either in bank branches or in post offices.

So far 18 lakh (approx) Implementing Agencies are registered on PFMS (till 30th November, 2016).

The total number of beneficiaries bank accounts registered in PFMS is 19.07crores (till 30thNovember, 2016).

Total Central DBT payments have been made for 26.52 crore transactions amounting Rs. 33417.36 crores for 37 schemes (till 30th November 2016 in 2016-17).

Total State DBT payments have been made for 2.88 crore transaction amounting Rs. 4363.28 crores for 27 schemes (till 30th November 2016 in 2016-17).

Total UT DBT payments have been made for 2.98 crore transaction amounting Rs. 52.10 crores for 30 schemes (till 30th November 2016 in 2016-17).

Pan-India roll out of MNREGS payments for Bank Account holders started from 1st April, 2015.  24.80 crore credits have been done for Rs. 24,571 crore through PFMS from 1.4.2016 to 30.11.2016.

Pan-India roll out of Indira Awas Yojana (IAY) payments for Bank Account holders started from July, 2015.  19.10 lakh credits have been done for Rs. 5114 crore through PFMS from 1.4.2016 to 30.11.2016.

E-IGAA i.e State Government payments through RBI advices have been started across Ministries.

NTRP i.e Non Tax Receipts Portal has been started from 16th February, 2016 and this is a great step towards Hon’ble PM’s Digital India Initiative. It facilitates online receipt of Non Tax Receipts for GoI Departments/Ministries. 24,277 credits have been received for Rs.77565.53 crores upto 30.11.2016.

One stop Government e –Market place (GeM) which facilitates online procurement of common use Goods and Services required by various Govt. Departments/organizations/PSUs is integrated with PFMS for facilitating the e-payment of bills received online through GeM portal by the respective Pay and Accounts Offices.

PFMS treasury integration is currently operational in 12 states and integration process has been initiated in other states also. It is expected to be completed by 31st March 2017.