Lok Sabha Question No. 1276 (UNSTARRED), answered on 2020-02-10
Subject: Publilc Financial Management System
Ministry: FINANCE
Asked by: Vishnu Dayal Ram

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE O/o CONTROLLER GENERAL OF ACCOUNTS

## LOK SABHA UNSTARRED QUESTION No. 1276 TO BE ANSWERED ON Monday, The 10 th   February, 2020

Magha 21, 1941(Saka)

## 'Public Financial Management System'

## 1276. Shri VISHNU DAYAL RAM

Will the Minister of FINANCE be pleased to state:

- (a) the objectives of the Public Financial Management System;
- (b) the details of functionalities that have been and are proposed to be built into it and its various functions; and
- (c) the details of other expenditure reforms that have been implemented by the Government?

## ANSWER

## MINISTER OF STATE (Finance & Corporate Affairs) (Shri ANURAG SINGH THAKUR)

- (a) The  objective  of  Public  Financial  Management  System  (PFMS)  is  to  facilitate  sound public  finance  management  for  Government  of  India  by  establishing  an  efficient  fund flow system as well as a receipt and payment cum accounting system. PFMS provides various  stakeholders  with  reliable  and  meaningful  management  information  and  an effective decision support system
- (b) Reply given in Annexure-I
- (c) Reply given in Annexure-II

## For Lok Sabha Unstarred Question No. 1276

## (b) Functionalities

Modules  developed  /under  development  by  Public  Financial  Management  System (PFMS) for stakeholders as per the mandate above include:

## I. Fund Flow Monitoring

- (a) Agency Registration  Module
- (b) Expenditure, Advance and Transfer (EAT) module
- (c) Accounting Module for registered  agencies
- (d) Treasury Interface  Module
- (e)    Public  Financial  Management  System  -  Panchayati  Raj  Institutions  (PFMSPRI) Fund Flow Interface
- (f) Mechanism for State  Scheme for fund  tracking
- (g) Monitoring of Externally Aided Projects  (EAP)

## II.   Direct Benefit Transfer Modules

- (a) Pay & Accounts Office(PAO) to Beneficiaries
- (b) Agency to Beneficiaries
- (c) State Treasuries to  Beneficiaries

## III.   Interfaces for  Banking

- (a) Core Banking Solution(CBS)
- (b) lndia Post
- (c) Reserve Bank of India (RBI)
- (d) Regional Rural Banks (RRBs)
- (e) Cooperative Banks.
- IV.   Pay & Accounts Office (PAO) module of PFMS covers payment and accounting of all Pay and Accounts Offices bills
- V. Employees  Information  System  (EIS)  Module has  been  developed  and  made operational for processing of salary bills of all Drawing and Disbursing Officers(DDOs)
- VI. Cheque Drawing and Disbursing Officers (CDDO) Module covers payment and accounting functions of CDDO bills.
- VII. Non-Tax Receipt Portal (NTRP) as one -stop window to citizens / corporates / institutions / other  users  for  making  online  deposits  of  Non -Tax receipts ( NTR ) which are payable to the Government of India (GOI)
- VIII. Complete online processing of pension disbursal through integration of Bhavishya ( Department of Pension ) and Pension Authoritsation Retrieval & Accounting System (PARAS) software of Central Pension Accounting Organization ( CPAO ).
- IX. General Provident Fund (GPF) Module covers  all  the  functionalities  of  GPF  like GPF advance, withdrawal, final payment, interest calculation etc .
- X. Integration  of  PFMS with  the  following  standalone  applications. The  sanction generated through the standalone application being  captured in the PAO module of PFMS
-  Government e -Marketplace ( GeM )
-  PRAHARI of Boarder Security Force ( BSF )
-  SELO of Central Reserve Police Force ( CRPF )
-  E -Wisdom of Lok Sabha
-  Composite Financial Accounting System (CFAS) of UT Chandigarh
-  Indian Customs Electronic Commerce Gateway (ICEGATE) of Central Board of Indirect Taxes and Customs (CBIC).
-  Department of Atomic Energy
-  Department of Space

## ( c) Other Expenditure Reforms

- i. Majority of schemes/components being implemented across Ministries/Departments such as PAHAL, MGNREGS, PMAY (Gramin), Pensions and Scholarships, which involves cash transfer as well as in kind transfers such as food  grains  and  Mid-Day  Meals  to  school  children,  have  been  linked  to  Direct Benefit Transfer (DBT). Implementation of Aadhaar based DBT has resulted in significant savings due to removal of duplicate/fake beneficiaries.
- ii. Government-e-Marketplace  (GeM)  portal  has  been  launched  by  Department  of Commerce  (DGS&D)  on  9 th August,  2016  which  is  a  complete  end-to-end procurement solution for common use goods & services for Government buyers. More than 31000 products and 1215 service providers have been made available for purchase/hire by the Government users.
- iii. Revised  General  Financial  Rules  (GFRs)  2017  has  been  released  on  7 th March, 2017 with updated limits and provision.

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