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PFMS (Public Financial Management System):

GS Paper 2:

Syllabus: Government Policies and associated issues.

 

Context:

The Single Nodal Agency (SNA) Dashboard of PFMS (Public Financial Management System) was recently launched by the Union Ministry of Finance.

 

What is SNA Dashboard?

It is a major reform initiated in 2021 with regards to the manner in which funds for Centrally Sponsored Schemes (CSS) are released, disbursed and monitored.

  • Under this system, each state is required to identify and designate an SNA for every scheme.
  • All funds for that State in a particular scheme are now credited in this bank account and all expenses by all other Implementing Agencies involved are affected from this account.

 

Significance of SNA Model:

  1. Ensures timely allocation of funds.
  2. Brought in greater efficiency in CSS fund utilization.
  3. Tracking of funds has become easier.

 

Current Affairs

 

About PFMS:

  • It was previously known as Central Plan Schemes Monitoring System (CPSMS).
  • It is a web-based online software application developed and implemented by the Office of Controller General of Accounts (CGA), Ministry of Finance.
  • Objective: To facilitate a sound Public Financial Management System for the Government of India (GoI) by establishing an efficient fund flow system as well as a payment cum accounting network.
  • Coverage: At present, the ambit of PFMS coverage includes Central Sector and Centrally Sponsored Schemes as well as other expenditures including the Finance Commission Grants.

 

InstaLinks:

Prelims Link:

  1. About PFMS.
  2. Coverage of PFMS.
  3. What is SNA Dashboard?

Mains Link:

Discuss the significance of PFMS.

 

Q. 1) Consider the following statements:

  1. Single Nodal Agency (SNA) Dashboard was launched in 2011.
  2. PFMS (Public Financial Management System) is a web-based online software application developed and implemented by the Office of Controller General of Accounts (CGA), Ministry of Finance.

Which of the above statements is/are correct?

  1. 1 only.
  2. 2 only.
  3. Both.
  4. None.

Sources: Indian Express.