Universal roll-out of PFMS for Central Sector Schemes

F. N0. 66(29) PF-II/2016
Government of India
Ministry of Finance
Department of Expenditure
Plan Finance II

North Block, New Delhi Date: 15th July, 2016

OFFICE MEMORANDUM

Subject: Universal roll-out of Public Financial Management System (PFMS) for Central Sector Schemes.

The undersigned is directed to state that at various review meetings, the Hon’ble Prime Minister has emphasized the need for improved financial management in implementation of Central Plans Schemes so as to facilitate Just-in-Time Releases and monitor the usage of funds including information on its ultimate utilization.

2, The Public Financial Management System (PFMS) which is administered by the Controller General of Accounts in the Department of Expenditure is an end-to-end solution for processing payments, tracking, monitoring, accounting, reconciliation and reporting. It provides the scheme managers a unified platform for tracking releases and monitoring their last mile utilization.

3. In order to abide by the directions to implement Just-in-time releases and monitor the end usage of funds, it has been decided to universalise the use of PFMS to cover all transactions/payments under the Central Sector Schemes. The complete monitoring of these schemes will require mandatory registration of all Implementing Agencies (lAs) on PFMS and mandatory use of Expenditure, Advance & Transfer (EAT) module of the PFMS by all lAs.

4. The Implementation Plan covers the complete universe of Central Sector Schemes, which inter-alia requires the following steps to be taken by each Ministry/Department:-

(i) All Central Schemes should be mapped/configured and brought on the PFMS platform

(ii) All implementing Agencies (lAs) receiving and utilizing funds need to be mandatorily registered on PFMS

(iii) Usage of PFMS modules should be made mandatory for all registered agencies for making payments, advances and transfers

(iv) All Departmental Agencies incurring expenditure in respect of Central Sector Schemes should register and compulsorily use the PFMS Modules

(v) All Grantee Institutions may be directed to adopt PFMS modules for making Payments/Transfers/Advance from Grants received from the Central Govt. This will enable generation of on-line Utilization Certificates for claiming funds from the Central Government

(vi) Ministries may also take action for integrating their respective systems/applications with the PFMS

5. The Central Project Monitoring Unit (CPMU) of PFMS will assist the Central Ministries/Departments in registration of Implementing Agencies for the Central Sector Schemes. Thereafter, Ministries will be required to deploy/allocate their own resource persons to support Departmental Agencies as well as Grantee Institutions. The full roll-out of PFMS may require fresh assessment of resources, including hardware, software, connectivity and technical resources to facilitate implementation at all levels of hierarchy.

6. Chief Controller of Accounts (CCAs) / Controller of Accounts (CAs) are required to draw up an Action Plan to facilitate full roll out of PFMS in their respective Ministries in consultation with the Secretary/Financial Advisor of the Ministry concerned.

7. As per the approved Action Plan, all Central Ministries /Departments should complete the full roll-out in respect of the Ministry/Department and Attached/ Subordinate Offices by 31′ October 2016. All Grantee Institutions should complete the roll-out by 31″ March 2017.

8. Further information is available at website: pfms.nic.in or through the PFMS Project Officers at the following contact details:

9. This issues with the approval of Finance Secretary.

(Arunish Chawla)

Joint Secretary to the Govt. of India

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