Routing central funds via PFMS made mandatory

In a move that would enable tracking and monitoring of the end-use of its funds, the Centre has made the use of Public Finance Management System (PFMS) mandatory for transfer of funds under the central-sector schemes, which account for 31% of the Budget. While 613 such schemes across all ministries are being covered under PFMS, the centrally sponsored schemes (CSSs), which account for another 12.95% of the Budget, may also be brought under PFMS gaze. The Centre has budgeted to spend Rs 6.67 lakh crore in FY18 under central sector schemes, up from Rs 6.21 lakh crore in FY17. It would also spend another Rs 2.78 lakh crore on CSS — where part contribution comes from states — in FY18, up from Rs 2.45 lakh crore in FY17. Finance secretary Ashok Lavasa on Friday said that more than 300 central and state government schemes are now riding on PFMS and payment of more than Rs 2.91 lakh crore relating to various schemes under DBT has been made through PFMS since 2013.As on date, payments to 34.19 crore beneficiaries have been made through PFMS and there are 21.72 lakh programme implementing agencies registered on PFMS.