Know About PFMS... explain and functionalities

What is PFMS:
Public Financial Management System is a Central Sector Plan scheme of the M/o Finance, Dept. of expenditure.
PFMS is being implemented by the Office of Controller General of Accounts which is the apex accounting authority of the Government of India under Ministry of Finance with the name- ”CPSMS” w.e.f 1.4.2008.& renamed “PFMS” W.E.F. 1.4.2014
The complete technical support viz. application development, database administration, hosting of portal etc has been entrusted to NIC.
The mandate for  PFMS:
Hon’ble Finance Minister announced the scheme in his budget speech during 2008
Expenditure  Finance  Committee  of  the Planning  Commission  approved the implementation of PFMS
Secretary (Expenditure), Ministry of Finance, New Delhi  asked all Ministries to implement PFMS
Implementing Authority:
The office of the Controller General of Accounts (CGA), which is the apex accounting authority of the Government of India under the Ministry of Finance, is implementing the Public Finance Management System in the entire country.
Objectives of PFMS:

1. Tracking of the flow of funds from the Centre to the lowest level of implementation- both under Treasury route & SPV route.
2. Registration of all agencies receiving plan funds with their bank accounts at all tiers of operation.
3. Payment to ultimate beneficiaries through banking channel
4. Reduction of float/ funds in the agencies’ bank accounts and “Just in time” provision of funds to agencies, based on floats/ funds available.
5. Capturing component-wise expenditure on a real-time basis at all tiers of implementation, including Panchayats and villages.
6. Decision Support System (DSS) to all levels of programme administration (Centre, State, District & Local Government, i.e. Panchayat / Municipality)
7. Enhance transparency & accountability in public expenditure.

Process flow for use of PFMS:

1. All Ministries/Departments are required to register their grantee

agencies/institutions with bank account on PFMS portal.

2. On approval of agency by the PD/ULA/Super Admin, bank account

travels to CBS and hit there and if it is correct it gets validated.

3. Sanction-IDs and Sanction Orders in favour of grantee institutions

are generated on the portal. 

4. The detail of releases is captured by the system on a real-time

basis after payment has been released.

Features of PFMS:

1 Integrated with Banks, Post Office, State Treasuries,   Accounting

& MIS Systems of some of Central  Ministries  & State Govts.

2 Functions as a Scheme, Budget & Funds Management System

3 Masters & Beneficiaries Management System

4 Accounting & Reconciliation System

5 Serves as an E-Payment Gateway  including  Direct benefit transfer

6 Facilitates payment from any level of the scheme

hierarchy/implementation

7 Facilitate & increase transparency

PFMS Portal:

* The PFMS is being implemented through the web-based application

developed and deployed by the office of the Controller General of

Accounts.

*  PFMS Portal can be accessed by login through http://pfms.nic.in

The detailed information about PFMS is available on the home page of

this Portal.

* All details of releases of fund & expenditure are captured on the

Portal.

Main reports in PFMS Portal:

1.Agency wise releases/expenditure/Transfers/Advances

2.State wise releases/expenditure/Transfers/Advances

3.District wise releases/expenditure/Transfers/Advances

4.Scheme wise releases/expenditure/Transfers/Advances

Reports in details:

Source PFMS Portal

Download Facility in Different Formats:

Source PFMS Portal

Unique Features:

1. The system is capable of comprehensive reporting

2. Information is captured on a real-time basis without any backlog of entries for accounting and payments

3. Automated bank reconciliation statement through CBS with Banks and Post Offices

4. Payments are made on the right time to right person under the right head of expenditure

5. The system is up-to-date for tracking of expenditure 

6. Better management of funds

7. To avoid duplicate entries and inconsistencies in reporting to Govt. Of India.

8. Can generate real-time utilisation certificates if desired

The benefit derived from PFMS:

1. It captures all schemes operated by civil ministers with the budget provision on the PFMS portal.

2. It provides a common platform which can provide details of ministry wise, scheme-wise,state-wise and agency-wise sanction issued and releases made both through the treasury route and the special purpose vehicle route.

3. The releases & expenditure statement along with per cent utilization vis-à-vis the BE can be generated on a daily/monthly basis.

4. All releases to the North-East States are available indicating Ministry-wise/scheme-wise and Agency-wise reports.

5. It distinguishes between releases/transfer of funds and final expenditure incurred.

6. The system provides a comparative statement of releases made in the corresponding period of previous years.

7. The system can indicate the detail of all such agencies (including NGO’s) drawing Grants from more than one scheme/ministry/department.

8. All sanction can be tracked right from its inception in the Program  Division, the movement to DDO for bill submission, to PAO for payment, and to bank with cheque/advice detail.

9. Report on sanction issued, sanction settled and sanction pending is available to all users. A tendency can also be generated from the system. The tracking of sanction and pendency reports are very effective tools for regular monitoring.

10. Sanction order is being generated through the system. The inbuilt “draft sanction modules” reduces the data entry work, typing work and entry related error in the preparation of sanction.

11. Sanction order issued through PFMS is available to beneficiary states / implementing agencies/entities & to the individual to trace their releases.

12. Universal application of PFMS software covering all Plan schemes of Government of India reduces the proliferation of local software and portals running for different schemes at the central and states level.

Benefits to state government:

1. Provide detail of all grants received by the state from different central ministries under a different scheme.

2. Provide details of plan grant received through the Treasury transfer, special purpose Vehicles, societies/, Autonomous bodies/Ngo's an individually registered in the state.

3. Provide details of plan grants directly received by a particular District, district societies/autonomous bodies & NGOs located in the district.

4. Capturing component-wise MIS on the releases made by states/ district/block level implementing agencies.

5. Capturing component-wise real-time based expenditure incurred at various level of implementation. Various implementing agencies at the state, District, Block and below level will generate sanction-ISs on the PFMS system and component-wise expenditure would be captured on an online real-time basis duly reconciled with a banking transaction.

6. On full implementation of PFMS, customized dashboards for management at all levels will be available to monitor the program implementation on an online basis.

Main modules of PFMS:

1. Sanction Generation Module

• All sanctions for Plan schemes at PD level are generated on this Portal.

2.  Agency registration module:

• Agencies get mapped in scheme hierarchy.
• Level wise bank account balances & daily transactions available.

3.  Expenditure filing module:

• Component-wise Fund Utilization available - Expenditure/Advances/Transfers.
• Cheque validation facility for ensuring exp. filing.

4. e-Payment module:

• Direct credit to beneficiaries (scheme & bank independent).
• e-transfers to vendors, employees & other institutions.
• Ensures compulsory expenditure filing.

5.  Treasury integration

Thank you...
On the next blog, I will tell you about these above five points...
Till then keep learning and be smarter...