How PFMS can increase the transparency as well as the accountability to the social sector? Discuss its working mechanism.
Public Financial Management System (PFMS) is a web based application for online financial management information. The PFMS will link financial networks of the central and state governments and give real time reporting of expenditure at all levels of programme implementation. It is the successor of Central Plan Schemes Monitoring System (CPSMS).
The PMFS platform tracks released funds and real time reporting of expenditure through treasury and bank interface. Then it compiles, collates and makes available in real-time, information regarding all government schemes, and, significantly, provides the government real-time information on resource availability and utilization across schemes.
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, PFMS interface is having interface in addition to the Core Banking System (CBS) of all Public Sector Banks, Regional Rural Banks, and major private sector banks, Reserve Bank of India, India post and Cooperative Bank
PMFS & Social sector:
PMFS in social sector enables social justice, fiscal fairness and income redistribution. Apart from that
- By Implementing PFMS, real time information on expenditure on every scheme is known at every point of time which increase the transparency in funding of schemes.
- Apart from providing transparency it will allow government expenditure to adopt a Just-in- Time (JIT) approach, with payments made only when they are needed thereby bringing transparency on use of funds and funds will not be lying idle under various heads