PUBLIC FUND MANAGEMENT SYSTEM(PFMS)

1. Background

• The Public Financial Management System (PFMS) is a web-based online software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, and Government of India. PFMS started in 2009 with the objective of tracking funds released under all Plan schemes of the Government of India, and real-time reporting of expenditure at all levels of Programme implementation. 
• Subsequently, the scope was enlarged to cover direct payment to beneficiaries under all Schemes. 
• Gradually, it has been envisaged that digitization of accounts shall be achieved through PFMS and beginning with Pay & Accounts Offices payments.

1.1 The outputs/deliverables for the various modes/functions of PFMS include (but are not limited to):

• Payment & Exchequer Control
• Accounting of Receipts (Tax & Non-Tax)
• Compilation of Accounts and Preparation of Fiscal Reports
• Integration with Financial Management Systems of States

• Configuring of schemes on the portal for fund transfer 
• Enabling fund management for Implementing Agencies through EAT Module  
• Facilitating DBT/non-DBT payments to beneficiaries & others 4. Linking PFMS with State Treasury systems 
• Bank Interface for effective payments, reconciliation and reporting to scheme/ Program Managers. 
• PAO/ DDO computerisation in each Civil Ministry 
• Enabling e-collection of Non-Tax Receipts 

• The primary objective of PFMS is to facilitate a sound Public Financial Management System for the Government of India (GoI) by establishing an efficient fund flow system as well as a payment cum accounting network. 
• PFMS provides various stakeholders with a real-time, reliable and meaningful management information system and an effective decision support system, as part of the Digital India initiative of GoI
• The enhanced application is envisaged to cater to all Plan and Non-Plan payments of GoI, all tax and non-Tax receipts and also functions such as a comprehensive HRMIS and self-contained pension as well as GPF modules. 
• Futuristically, all the existing standalone systems currently catering to various functions in the Government of India will be subsumed in PFMS.
• The biggest strength of PFMS is its integration with the Core banking system in the Country. 
• As a result, PFMS has the unique capability to push online payments to almost every beneficiary/vendor. 
• At present, the PFMS interface is having the interface in addition to the Core Banking System (CBS) of all Public Sector Banks, Regional Rural Banks, major private sector banks, Reserve Bank of India, India post and Cooperative Banks.