Public Finance Management System for all Central Sector Schemes | Labour Law News
Union Finance Minister, Shri Arun Jaitley ,Public Finance Management System,PFMS, Central Sector Schemes, Benefits of Government ,Government wide Integrated Financial Management System ,GIFMIS

Public Finance Management System for all Central Sector Schemes

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Benefits of the various Government Schemes reach to the last mile through PFMS

The Union Finance Minister, Shri Arun Jaitley launches the mandatory use of Public Finance Management System (PFMS) for all Central Sector Schemes; States that PFMS would ensure that the benefits of the various Government Schemes reach to the last mile; Hopes that soon PFMS will progress towards a Government wide Integrated Financial Management System (GIFMIS) – as a comprehensive Payment, Receipt and Accounting System.

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley said that the mandatory use of Public Finance Management System (PFMS) for all the Central Sector Schemes of the Government of India would help in tracking and monitoring the flow of funds to the implementing agencies. Shri Jaitley further said that due to the monitoring of funds through PFMS, one can know the actual status of utilization of funds by the multiple implementing agencies of the Central and the State Governments.

He said that the ultimate purpose of implementing any Scheme is to ensure that the benefits much reach to the last mile. The Finance Minister specifically mentioned about the implementation of various Schemes through Direct Benefit Transfer (DBT) mechanism in this regard. The Union Finance Minister Shri Arun Jaitley was addressing the senior Officers of the Finance and other Ministries after launching the mandatory use of the Public Finance Management System (PFMS) for all Central Sector Schemes in the national capital today. These Central Sector Schemes with a budgetary outlay of Rs.6, 66,644 crore covers over 31 percent of the total Central Government expenditure during the current financial year 2017-18.

The Union Finance Minister Shri Arun Jaitley further said that PFMS, with the capability of providing real time information on resource availability, flows and actual utilization 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 costs to the Government. The Finance Minister said that with the use of PFMS, there will not be much paper work and it would go a long way in monitoring and tracking of any unnecessary parking of funds by the implementing agencies and thereby minimizing the cases of delay and pending payments to a large extent. The Finance Minister hoped that soon PFMS will progress towards a Government wide Integrated Financial Management System (GIFMIS) – as a comprehensive Payment, Receipt and Accounting System.

The mandatory PFMS on-boarding for the remaining Schemes and Programmes including the Centrally Sponsored Schemes is also targeted to be achieved in a phased manner.

 

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