The Central Plan Scheme Monitoring System, formerly known as CPSMS, is now remodeled with a recognizable brand name as PFMS. It is an integrated and robust central sector plan scheme of the planning commission. PFMS works collaboratively by connecting with a well-established decision support system for implementing plans and schemes initiated by the government of India. This article explains the meaning of PFMS along with its significance and benefits.
What is the full form of PFMS?
PFMS stands for Public Financial Management System. PFMS is engaged in channeling fund releases and planning schemes from the government of India. It proudly consists of more than 8,00,000 agencies (receiving fund releases) on its online portal. The planned outcome of this large scheme was to expand and include state-wise and scheme-wise fund releases for the centrally sponsored schemes.
What is PFMS?
It is a magnificent initiative by the Public Financial Management reforms centre under the government of India. It performs various tasks like recording programs in the social sector and examining fund payout towards various projects and assignments. This scheme was prodigiously established by the Finance Minister of the government of India. The significant objectives of this magnanimous initiative were to enable better tracking mechanisms, reviewing and monitoring activities while engaging a powerful decision support system to promote public financial accountability and maintain transparency and liquidity during scheme implementation.
PFMS makes sure that the funds directed and invested in the various programs are done with premeditated causes. This helps the government eventually facilitate the budget generation, listing, and utilizing these programs at various implementation tiers. Budgets are forecasted and planned based on fact based accounting information abstracted from the Controller General of Accounts.
The foundation stone of PFMS was laid progressively when the necessity to resolve deficiencies and loopholes in the existing accounting system had to be sorted out. The earlier system was not powerful enough to support budgeting, maintaining vigil at all times on the financial information system of the country, and co-ordinate with schemes and program planning activities.
As this new system gained popular acceptance, it is now widely accessible in all states and central ministries. PFMS has also managed to achieve the Developer Innovation and Excellence Award from Microsoft’s technology giant in 2009. This huge initiative has been considered one of the most effective web-based online transaction systems as it has collaborated with CBS. The CBS operates as the Central MIS for country-wide DBT transactions, and it has over 150 banks under its umbrella all over India and includes Public Sector Banks.
Benefits of PFMS
The benefits offered by PFMS are huge. They provide real-time welfare measures at the state level, district level, and all other tiers to the citizens of India:
- Draft Sanction Modules are refashioned to reduce typing work, data entry works, and errors present while compounding important sanctions through this system.
- Sanction orders granted to PFMS are now available at profitable states of earning. The releases can be well tracked by implementing agencies, entities, and individuals.
- A relatable account statement of releases is provided to look into the previous year’s transactions.
- User reports on pending issued and settled sanctions are generated to facilitate an efficient monitoring system.
- DDO engages itself in bill payments for all sanctions. From here, it is further moved to PAO for releasing payment. This is then forwarded to banks with cheques and advice notes.
- A clear distinguishing mark is established between fund transfer, fund release, and fund investment operations.
- ”BE” module generates daily/monthly reports on fund releases, investment statements, and percentile utilization of assets.
- This valuable platform offers details branched out into scheme-wise, agency-wise, state-wise, and ministry-wise sanctions. This includes issues and releases made through both channels – special purpose vehicle routes and treasury routes.
- NGOs and other agencies that have resorted to withdrawing funds from more than one scheme/department are warned by PFMS proactively.