Direct Benefit Transfer worth Rs 34 lakh cr facilitated by PFMS: FM

Finance Minister Nirmala Sitharaman on Friday said Direct Benefit Transfer of Rs 34 lakh crore has been facilitated by the Public Financial Management System (PFMS) and asked accounts officers to further enhance efficiency and transparency of the system.

In a written message to the Controller General of Accounts (CGA) and the Indian Civil Accounts Organisation (ICAO) on the occasion of the 48th Civil Accounts Day, Sitharaman said PFMS has been the cornerstone of establishing an efficient fund flow system alongside a robust payment and accounting network.

PFMS is the management information system used by officers of the Indian Civil Accounts Service to maintain the accounts of the government.

It is also used to transfer funds to beneficiary accounts of various government schemes via Direct Benefit Transfer (DBT).

”The Direct Benefit Transfer mechanism, facilitated through PFMS, has led to the transfer of Rs 34 lakh crore from the government. This is a testament to the system’s effectiveness in eliminating inefficiencies and ensuring that the benefits are delivered directly to the citizens without any leakages,” Sitharaman said in her message, read out by Finance Secretary T V Somanathan at the Civil Accounts Day event.

She also highlighted that 1,081 different schemes, including those of state governments, have been seamlessly integrated into the DBT.

PFMS, which is developed and implemented by the Controller General of Accounts under the Department of Expenditure, has played a pivotal role in revolutionising the financial administration of the government.