Centre to Implement Public Financial Management System to Cut Cost

Centre to Implement Public Financial Management System to Cut Cost  The Central Government is planning for the speedy implementation of Public Financial Management System (PFMS) in the country.  ii. There are about Rs.1-1.5 lakh crore of idle funds lying with the government .The system will enable the government to monitor and access the more than Rs.1 lakh crore of idle

funds lying with it under various heads. This will save the government from borrowing money from external source thus saving interest costs of at least Rs.7,000 crore at 7% interest.

About Public Financial Management System:

♦ PFMS s a web based application administered by the department of expenditure.It is an end-to-end solution for processing payments, tracking, monitoring, accounting, reconciliation and reporting. It is a web based application.

♦ The PFMS compiles, collates and makes available in real-time, information regarding all government schemes, and provides the government real-time information on resource availability and utilization across schemes

♦ The platform will allow government expenditure to adopt a Just-in- Time (JIT) approach, with payments made only when they are needed.