Brief Background
- A robust, secure, and integrated digital platform for public finance
- Supports Just-in-Time (JIT) fund transfers
- Backbone for handling financial operations of the Union Government
Objectives
- To ensure government spending complies with the allocated
- To do real-time tracking of fund disbursement and expenditure
- To ensure seamless government payments and exchequer control
- To do accounting of receipts, compilation of accounts, and preparation of timely and accurate financial reports
Benefits and Impact
- Manages 1,200+ schemes (including 1,100+ DBT schemes)
- Handled 2.5 billion transactions annually (FY 2024-25)
- Having onboarded 3.3+ million implementing agencies
- Integrated with 250+ external systems
Implementation Methodology
- Modular development - Treasury Payments, Revenue Management, Payroll, Pension, Accounting, and integrations with various standalone systems
- Each module or feature added to PFMS follows a clear and well-defined lifecycle consisting of
- Concept Note
- Business Requirement Document (BRD)
- Software Requirements Specification (SRS)
- Development
- Quality Assurance (QA)
- Pre-Audit and User Acceptance Testing (UAT)
- Pilot rollout and feedback integration
- Mass rollout and continuous support
- Stakeholder engagement and capacity building
Modalities of implementation
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Technical
- PFMS and its building blocks available for implementation in Lift and Shift manner with required configuration
- Non-tax revenue streamlining can be done through a single online window
- Paperless Treasury setup available for making entire budget execution processes online
- Tax revenue accounting, reconciliation and refunds between Revenue department and Treasury Handholding Support
- Capacity building of PFMS stakeholders
- Linking State Owned Enterprises and Autonomous Entities fund transfer, expenditure and balance monitoring with PFMS
- Onboarding of cash transfer programs: Example - Direct Benefit Transfer
- Digital Assistance in areas of cash management, debt management , budgetary processes, treasury operations, fiscal reporting etc
- Digitisation of Internal Audit System
- Setting up of HRMS, payroll and pension systems
- Sub-national Government transfers and utilization reporting
- Linkage of Treasury system with Central bank and/or commercial banks for effective public financial management
High level Architecture
Use-cases
- Primary use-case: Operationalisation of an efficient fund flow system as well as a payment cum accounting network
- Management of budget, allocation and expenditure against the government schemes
- Unique capability to first validate the bank account before pushing online payments to every beneficiary/vendor
- Used as a channel for payment, accounting and reporting under DBT
