Union finance secretary Ashok Lavasa reviewed the progress of the planned rollout of the public financial management system, administered by the Controller General of Accounts, with the chief secretaries of Punjab, Haryana, Chandigarh, Himachal Pradesh and Uttarakhand on Thursday.
UT finance secretary Sarvjit Singh was also present. The public financial management system (PFMS) provides an end-to-end solution for processing payments, tracking, monitoring, accounting, reconciliation and reporting of transactions.
The system provides scheme managers a unified platform to track releases of funds to implementing agencies and monitoring their utilisation.
The objective of the central government is to promote fiscal discipline in both the Union and state governments and greater transparency in the fund flow management of various schemes implemented by states.
Lavasa said: “The objective of PFMS is efficient utilisation of resources and establishing a transparent mechanism to transfer resources and track the transactions till the benefits reach the target recipients.”
At various review meetings, the Prime Minister has emphasised on the need for better utilisation of central funds transferred to the state governments and their implementing agencies.
The system would be a major transformation in the fund flow management, leading to complete elimination of idle float of funds, better cash and debt management and better information flow for decision support system. It is also aimed at empowering various stakeholders including the common citizen through greater disclosures and availability of real time information in the public domain.
During the review meeting, states indicated the level of preparedness of treasury integration with PFMS. Gaps in implementation were also identified and necessary support mechanisms for full rollout in a time-bound manner were discussed.
This would enable the central government and the state governments to work in a collaborative manner, truly in the spirit of cooperative federalism.
The central government would provide financial assistance for computerisation of state treasuries and training of personnel. The state governments would set up state project management units, district project management units and others.