The State Project Management Unit (SPMU) and District Project Management Units (DPMUs) will help in customisation of state-specific requirements, monitoring, implementation and capacity building related to roll out of Public Finance Management System (PFMS), according to an official order.
The Union Government in December 2013 approved the national roll out of PFMS for all states and schemes by 2017. The financial management platform PFMS aims at tracking fund flows to states and central departments on real-time basis and facilitating direct payment to beneficiaries among others.
The platform has a database of all recipient agencies and is integrated with State Treasuries for tracking of fund flow to the lowest level of implementation for plan schemes.
Jammu and Kashmir is among the states that have to implement the PFMS by March 31, 2017.
"Sanction is hereby accorded to the setting up of State Project Management Unit at state level and District Project Management Unit at each district for coordination, customisation of state specific requirements, monitoring implementation and capacity building in the state related to Public Finance Management System (PFMS)," Commissioner Secretary, Finance Department, said in the order.
Choudhary said all the posts in SPMU shall be filled up as far as possible by available officials of the Office of the Controller General of Accounts (CGA).
Remaining posts, if any, will be filled up on deputation basis from among official of J&K State Government Accounts Service. National Informatics Centre (NIC) shall post their officials to technical positions, he said.
The expenditure on account of salary and other incidental expenses of officials posted to SPMU and DPMUs will be borne by the central government. District Project Management Units (DPMUs) will be staffed by outsourced manpower.
PFMS was implemented in states such as Assam, Bihar, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Odisha, Puducherry, Rajasthan, and Uttar Pradesh by August 2016 under the first phase.
In the second phase, the system was rolled out in Andhra Pradesh, Arunachal Pradesh, Chattisgarh, Goa, Gujarat, Himachal Pradesh, Haryana, Manipur, Meghalya, Punjab, Sikkhim, Tamil Nadu, Telangana, Uttarakhand, West Bengal by December 31, 2016.
Stage-3 states included Delhi, Jammu & Kashmir, Karnataka, Mizoram, Nagaland, Tripura by March 31, 2017.
PFMS is aimed at ensuring better cash management for government, transparency in public expenditure and real-time information on resource availability and utilization across schemes.
The roll-out will also result in improved programme administration and management, reduction of float in the system, direct payment to beneficiaries and greater transparency and accountability in the use of public funds. The proposed system will be an important tool for improving governance.
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