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?

o 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.
o Under this system, each state is required to identify and designate an SNA for every scheme.
o 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:

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

What is PFMS?

o It was previously known as Central Plan Schemes Monitoring System (CPSMS).
o It is a web-based online software application developed and implemented by the Office of Controller General of Accounts (CGA), Ministry of Finance.
o 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.
o 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.