The Union Cabinet today approved the national rollout of the Plan Accounting and Public Finance Management System (PA&PFMS) also known as Central Plan Scheme Monitoring System (CPSMS) over a period of four years till 2017 with a total outlay of Rs.1080 crore.

The new system provides for a financial management platform for all plan schemes, a database of all recipient agencies, and integration with core banking solution of banks handling plan funds, integration with State Treasuries and efficient and effective tracking of fund flow to the lowest level of implementation for Plan schemes of the Government.  It will provide information across all plan schemes/implementation agencies in the country on fund utilization leading to better monitoring, review and decision support would enhance public accountability in the implementation of plan schemes.

It will result in effectiveness and economy in public financial management through better cash management for Government transparency in public expenditure and real-time information on resource availability and utilisation across schemes. The    roll-out    will    also result    in    improved    programme    administration    and management, reduction of float in the system, direct payment to beneficiaries and greater transparency and accountability in the use of public funds.  The proposed system will be an important tool for improving governance.

The project organization structure will comprise the Project Implementation Committee (PIC) at the apex level. The Central Project Management Unit (CPMU) at the centre and State Project Management Unit (SPMU) and District Project Management Units (DPMU) at the state and district levels respectively.

The scheme will be named as the Public Financial Management System (PFMS).

Background:

The Central Plan Scheme Monitoring System (CPSMS) is a Central Sector plan scheme of the Planning Commission being implemented by the Office of Controller General of Accounts (CGA), Ministry of Finance, Department of Expenditure. Its objective is to establish an on-line financial management information and decision support system for tracking of funds released under all plan schemes of Government of India and real time reporting of expenditure at all levels of programme implementation through treasury and bank interface.

The Gross Budgetary Support (GBS) to Plan of the Centre is Rs.5,55,322 crore in 2013-14 BE. Apart from utilisation of Plan funds by the Central Ministries/Departments directly, Plan funds are also released under several Centrally Sponsored, Central Sector and State plan schemes from different Ministries of the Government of India to States, the State Agencies by way of direct transfer and -to-Central Agencies; However, given the diversity in the implementation hierarchy, number of implementing entities and the geographical reach of these schemes, there is no common platform available for financial monitoring of these schemes, The CPSMS was started as a Plan Scheme to address this problem, following the Budget Speech of 2008-09 by the Finance Minister. After the initial phase of establishing a network across Ministries/ Departments, it has been decided to undertake National rollout of the CPSMS to link the financial networks of Central, State Governments and the agencies of the State Governments. The scheme is included as 12th Plan initiative of Planning Commission and Ministry of Finance. The Detailed Project Report (DPR) was prepared by the Programme Implementation Committee (PIC) of the CPSMS and later Expenditure Finance Committee (EFC). The Committee of Secretaries (CoS) also looked into some issues. Finally, it has been considered in the Cabinet.

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SH/NK/AK