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Mandatory use of PFMS to help monitor fund flow to Central Sector Schemes

Use of PFMS app to reduce the float in financial systems by enabling 'just-in-time' releases

Press Trust of India  |  New Delhi 

Union Minister for Finance and Corporate Affairs, Arun Jaitley addressing a Press Conference at BJP headquarters  in New Delhi. (Photo: PTI)
Finance Minister Arun Jaitley on Friday (Oct 27) announced the mandatory use of PFMS for all Central Sector Schemes. (Photo: PTI)

Finance Minister on Friday said the mandatory use of (PFMS) will help in monitoring the flow of to beneficiaries of different government

He was speaking at a function to launch the mandatory use of PFMS for all (CSS), which have a budgetary outlay of Rs 6,66,644 crore.

With the capability of providing real-time information, the web-based software app PFMS has tremendous potential to improve programme/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, he said.

“PFMS would help in tracking and monitoring the flow of to the implementing agencies,” said, adding that due to the monitoring of funds, “One can know the actual status of utilisation of by the multiple implementing agencies of the central and state governments.”

The ultimate purpose of implementing any scheme is to ensure that the benefits much reach to the last mile, he added.

In his address to senior officers of the finance and other ministries, also talked about implementation of various schemes through (DBT) mechanism.

He expressed the hope that soon PFMS would progress towards a government wide Integrated Financial Management System as a comprehensive Payment, Receipt and Accounting System.

Finance Secretary said 13 are under PFMS had picked-up great momentum in the last two years and all the states “are now on board with the central government as far as acceptance of PFMS is concerned”.

Over 300 central and state government schemes, he said, are now riding on PFMS and payment of more than Rs 2.91 lakh crore relating to various schemes under DBT has been made through PFMS since 2013.

He said that PFMS has enabled the government in taking forward the DBT initiative with collateral benefits of plugging leakages and eliminating ghost beneficiaries.

Payments to 34.19 crore beneficiaries have been made through PFMS and there are 21.72 lakh programme implementing agencies registered on PFMS.

First Published: Sat, October 28 2017. 02:14 IST