What is the PFMS Full Form?

The full form of PFMS is Public Financial Management System (PFMS). The PFMS is a web based application in online management of information and decision support system for the schemes of the government of India and the State government.

The purpose of this system is to track and monitor the fund disbursement and utilization under various Schemes on real times basis.

It is a common electronic platform for complete tracking of fund flow from the Government to large number of programme implementing agencies until it reaches the final intended beneficiaries or vendors.

It enables real time monitoring of disbursements and utilization of funds and also provides decision support systems across departments, institutions and offices.

Responsibilities of PFMS In India?

The main functions of PFMS are a transaction cum network of cash flow method and accounting.

As part of the Government's Digital India initiative, PFMS provides a reliable, efficient decision support tool, real-time and meaningful information management system.

The most important advantage of PFMS in the country is its integration with the central bank system.

History of PFMS

PFMS was introduced during 2009 as a Central Sector Scheme of the Planning Commission, aimed at tracking the funds released under the Govt.

Real time reporting of expenditure at all levels of India Plan schemes and plan implementation.

After a few years, in the year 2013, the scope was widened to cover direct payments to beneficiaries under both plan and non-plan schemes.

At the end of 2014, it was planned that PFMS accounts would be digitized and additional features would be added to PFMS in various phases.