The full form of PFMS is Public Financial Management System.
PFMS is a web-based online software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, Government of India. It serves as a platform for efficient management of government funds and tracking expenditure across various government agencies.
Here's a breakdown of what each part of the acronym represents:
- Public: Refers to government or state-owned resources and financial activities.
- Financial: Pertains to monetary matters, including revenue, expenditure, and assets.
- Management: The process of overseeing and controlling financial resources effectively.
- System: A structured approach or organized method for handling financial operations.
The primary objective of PFMS is to facilitate sound public financial management by providing real-time information on resource availability and utilization. This enables better decision-making, enhanced transparency, and improved accountability in government spending. Key functions of PFMS include:
- Payment and accounting: Processing payments to beneficiaries and maintaining accurate accounts of government transactions.
- Direct Benefit Transfer (DBT): Facilitating the transfer of subsidies and benefits directly to the intended recipients.
- Expenditure tracking: Monitoring the progress of projects and schemes by tracking expenditure at various stages.
- Reporting and analysis: Generating reports and analyzing data to improve financial management practices.
