PFMS and its working principle
PFMS full form is Public Financial Management System, it is a web-based online software solution developed and PFMS was implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, and Government of India. It was launched in 2009, and it was established with the main objective of tracking funds released under all plan schemes of the Government of India. And reporting all real-time expenditures at all levels of program implementation. The outputs for the various functions and modes of PFMS include:
- Exchequer control and payment.
- Accounting of receipt for both tax and non-tax.
- Preparation of financial reports and complications of accounts.
- Integration with the financial management system of states.
The working principles of PFMS:
The primitive function of PFMS is to facilitate the public financial management system for the government of India. It was launched to establish an effective fund flow system, on the other hand, it maintains the payment cum accounting networks. It provides a meaningful management information system as well as an effective decision support system. And also offers various stockholders real-time and more reliability.
Moreover, it has established an interface with the treasury system of all the states and the 2 union territories with legislatures. This system provides the facility of exchanging data regarding allocation, budget, and expenditure against the central transfer of funds, mainly for the centrally sponsored schemes of the Government of India.
Final Words:
To summarize, the PFMS full form is Public Financial Management System, it is acting as the backbone of the payment system of the Government of India. Although it is integrated with the core banking system in the country. Hence, it has the unique capability to first validate and approve the account before pushing online payments to almost every beneficiary. It is also considered the channel for payment, accounting, and reporting under Direct Benefit Transfer.