The full form of PFMS is Public Finance Management System. It was earlier known as CPSMS (Central Plan Schemes Monitoring System). It is an online software program that was designed and introduced by CGA (Controller General of Accounts). PFMS is a transactional system that provides real-time resource utilization.
These funds are released from the total funds of India. PFMS was created to meet all the requirements of the fund management and accounting department. PFMS (Public Financial Management System) is designed to transfer money as a subsidy directly to a person to their bank account. If money needs to be transferred to a postal account, this can also be done through the public finance management system.
History of PFMS
PFMS, was also known as central plan monitoring system. It was an online programming application created by the Office of the Chief Accounts Officer. PFMS was launched in 2009 as a central sectoral plan of planning and commission to monitor support under all schemes of the Government of India. In late 2014, upgraded PFMS features were launched. Digitization of records will be done through PFMS and other functions for various phases would also be incorporated.
What is the purpose of PFMS?
- Support the open money framework for government by creating an effective back-up framework flow.
- It provides different data frameworks to different partners such as continuous framework, solid and important administrative work.
- Continuous use at all levels of program usage.
- The inclusion of a focal division and a middle path supported plans such as various consumptions including monetary rewards.
- PFMS is designed to transfer money as a subsidy directly to a person to their bank account. If money needs to be transferred to a postal account, this can also be done through the public finance management system.
Need for PFMS
There are different types of schemes initiated by the government for the public. Sometimes these programs include subsidies and transfer of money to the public or needy people from the treasury. Unfortunately, any natural disaster affects many people, such as a flood, famine or cyclone, damages entire areas or villages. Sometimes any natural calamities destroy the entire crops of the farmers and then all the victims deserve help from the government.
So when the government announces that it will distribute funds to help each victim, there is a need and a role for a public financial management system. PFMS becomes the connecting link for the distribution of aid funds to the bank accounts of needy people or victims from the treasury. This problem defines the need to design a PFMS. In addition to victim assistance fund transactions, there is a payment tracking feature on the PFM website. This means that any user can track payments on the National Scholarship Portal from the web. Students who are looking forward to receive the scholarship can track their payments from the PFMS website.