PFMS is the cornerstone for establishing an efficient fund flow mechanism for facilitating a real time, reliable and meaningful management information system: Smt. Nirmala Sitharaman

Union Finance Secretary commends initiatives taken by the CGA in e-Bill Implementation and Bill Payment Efficiency for the Union accounts; urges end-to-end implementation of the e-bill system for 100% coverage

The Civil Accounts Day 2024 was celebrated in New Delhi, to mark the 48^th foundation day of Indian Civil Accounts Service (ICAS). Union Finance Secretary and Secretary Expenditure, Dr. T. V. Somanathan presided over the event as the Chief Guest. On this occasion a short film on the evolution and achievements of the Indian Civil Accounts Organization (ICAO) was also screened.

The Finance Secretary read the message of the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, sent for the occasion. In her message, the Finance Minister recognised the pivotal role played by the Public financial Management System (PFMS), implemented by the office of Controller General of Accounts (CGA), in revolutionizing the financial administration of the Government of India.  She termed the PFMS as the cornerstone for establishing an efficient fund flow mechanism for facilitating a real time, reliable and meaningful management information system. The FM further noted that the Direct Benefits Transfer (DBT) mechanism, facilitated through the PFMS, has led to the transfer of Rs. 34 lakh crores from Government to the beneficiaries. She also commended the initiatives like the Dirghayu Pensioners’ mobile app, implemented by the Central Pension Accounting Office (CPAO) under CGA, for empowering over 12 lakh pensioners with easy access to pensioner-related information and grievance redressal.

In a video message, Comptroller and Accountant General of India, Shri Girish Chandra Murmu remarked about Indian Civil Accounts Service (ICAS) and said, “Since the Service itself was born out of a major reform, carrying forward the spirit, ICAS has never lagged behind by constantly trying to usher in reforms to always raise the bar by leveraging technology, with PFMS being one of the finest examples.”

In his comments, the Finance Secretary congratulated the ICAS for efficiency in adopting technology, citing innovations like Treasury Single Account and seamless implementation of the new fund flow mechanisms under Centrally sponsored schemes. He commended the essential role played in timely payments and appreciated the initiatives taken by the CGA in e-Bill Implementation and Bill Payment Efficiency for the Union accounts while highlighting the improved Bill Payment Efficiency as a top priority, urging sustained efforts, close monitoring, and complete end-to-end implementation of the e-bill system for 100% coverage.Dr. Somanathan appreciated the efforts of PFMS for a hassle-free annual closing in March 2023 and expressed his desire for the same efficiency in 2024.

Controller General of Accounts, Mr. Shyam Dubey gave details of the achievements of the organisation during the year in the area of accounts, public financial management and capacity building. He commended the organization's robustness demonstrated during the COVID-19 pandemic, transferring over Rs. 22.85 lakh crore, including DBT schemes. CGA further informed the gathering extension of the rollout of e-bill system with enhanced coverage, implementation of revised fund flow mechanism through Treasury Single Accounts, Central Nodal Account (CNA) and Single Nodal Account (SNA) system, revision of Object Heads which was done till the accounts granular level and revision of the Civil Accounts Manual which has been done after 17 years.

Controller general of Accounts also elaborated on the recent successful pilot of SNA – SPARSH through the tripartite network of PFMS, e-Kuber of RBI and State IFMIS which has demonstrated the robustness of PFMS in the quest of the service towards efficient Cash Management. The gathering was also informed of the efforts made by the organisation in the G-20 Data Gap initiatives, enabling the country to move from Red to Amber status and expressed desire to move towards Green status in near future.

A revamped PFMS website having user-friendly and intuitive features compliant to the Guidelines for Indian Government Websites (GIGW) was launched by the Finance Secretary. FM Samman Awards were also distributed to the various field formations for innovative work done by the Service officers.

The day was followed with three sessions which were on role and way forward of ICAO with a series of discussion with retired Controller General of Accounts followed by a session on banking interface with government for improving service delivery and the last session of the day was on PFMS as an aid to cash management and data driven governance.

Public Financial Management System central to fund flow reforms, e-bill rollout and enhanced cash management and payment efficiency. The Public Financial Management System (PFMS) is described as the operational cornerstone for real time fund flow, management information and cash management, enabling Direct Benefits Transfer and large scale payments. The summary stresses end to end implementation of the e Bill system for full coverage and improved bill payment efficiency, institutional reforms including Treasury Single Account, Central Nodal Account and Single Nodal Account mechanisms, a successful SNA SPARSH pilot linking PFMS with e Kuber and State IFMIS, and participation in G 20 Data Gap initiatives.