Public Financial Management System (PMFS)

Public Financial Management System (PMFS)

News: The Single Nodal Agency (SNA) Dashboard of PFMS (Public Financial Management System) was recently launched by the Union Ministry of Finance. 

What is SNA Dashboard? 
• It is a major reform initiated in 2021 with regards to the manner in which funds for Centrally Sponsored Schemes (CSS) are released, disbursed and monitored. 
• Under this system, each state is required to identify and designate an SNA for every scheme.
• All funds for that State in a particular scheme are now credited in this bank account and all expenses by all other Implementing Agencies involved are affected from this account.

Importance: 
• Ensures timely allocation of funds.
• Brought in greater efficiency in CSS fund utilization.
• Tracking of funds has become easier.

What is PFMS? 
• It was previously known as Central Plan Schemes Monitoring System (CPSMS).
• It is a web-based online software application developed and implemented by the Office of Controller General of Accounts (CGA), Ministry of Finance.
• Objective - To facilitate a sound Public Financial Management System for the Government of India (GoI) by establishing an efficient fund flow system as well as a payment cum accounting network.
• Coverage - At present, the ambit of PFMS coverage includes Central Sector and Centrally Sponsored Schemes as well as other expenditures including the Finance Commission Grants.