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{{Short description|Indian public financial management reforms}}
{{refimprove|date=October 2010}}
The '''Central Plan Scheme Monitoring System''' ('''CPSMS''') (now called '''Public Finance Management System''' or '''PFMS''')<ref>{{Cite web|title=PFMS|url=https://pfms.nic.in/static/NewLayoutCommonContent.aspx?RequestPagename=Static/Implementation.aspx|access-date=2020-09-28|website=pfms.nic.in}}</ref> is a [[Government of India]] public financial management reforms initiative which monitors programs in the social sector and tracks funds disbursed. Given the large number programs on which the money is spent, the CPSMS is an initiative by the Indian Central Government to ensure that the money is spent according to its intended purpose, and provide an accounting of same.
==History==
The Economic Survey (2007–08) emphasized the need for effective financial monitoring of the Plan Schemes. The Finance Minister in his Budget Speech (2008–09) announced<ref>[http://gscurrentaffairs.com/gk/central-plan-schemes-monitoring-system-cpsms/ Announcement of CPSMS] {{webarchive |url=https://web.archive.org/web/20100929220209/http://gscurrentaffairs.com/gk/central-plan-schemes-monitoring-system-cpsms/ |date=September 29, 2010 }}</ref> the establishment of a comprehensive Decision Support System and Management Information System. The 11th Plan Document also recognized the deficiencies in the existing accounting system for the Plan Schemes and its inability to support informed planning, budgeting and effective monitoring of these schemes. It also underlined the need for a consolidated financial information system for the Plan Schemes.
The EFC of the [[Planning Commission (India)|Planning Commission]]
By 2009,
=== 2009-10 ===
By the 2009-10 financial year the CPSMS had made significant strides since its initial roll out. The dedicated web portal of CPSMS was operational and had registered more than 8.00 lakhs hits. All the Plan Schemes of Civil Ministries have been mapped and about 75,000 Sanctions were issued. All releases from the Government of India under Plan Schemes were now made through CPSMS, and all agencies receiving these releases were registered on the CPSMS Portal. More than 800,000 agencies have been registered. Ministry, Scheme, State-wise, District, NGO, Individual data of releases from GOI are available centrally on CPSMS in real time. The CPSMS data is fully reconciled with the accounting data of Controller General of Accounts.
Central Plan Scheme Monitoring System has successfully integrated with the [[Core Banking Solution]] (CBS) of
CPSMS
The CPSMS, after successfully completing the pilots
Planning Commission, Government of India
==Why CPSMS==
There are over 1045 plans being implemented in the priority social sector, aimed at millions of beneficiaries across India, through the different ministries of the central government of India. Moreover, the Central Government also releases funds under Additional Central Assistance program to states to use within their region. Approximately
CPSMS' purpose is to provide greater transparency and accountability to social sector monitoring that has not existed until now. Financial utilization can be put in the public ___domain, and fund transfers to grassroots entities and utilization by them can be accessed by interested individuals and organizations. Only about 20% of these funds are routed to states through the Treasury route and 80% of funds are sent through Special Purpose Vehicles, which have weaker intrinsic internal control mechanisms available in the Treasury mechanism.{{cn|date=October 2015}}
The current program-specific MISs operate with time lags and do not give a clear picture of funds remaining unutilized in each fiscal year. While funds released by the central government are immediately booked as expenditure in the Central Government accounts, utilization in the field takes time and while commercial banks enjoy the float, the Central Government must borrow to meet its fiscal deficit. This is attributable to the absence of a system that could quickly provide consolidated or granular information on utilization, advances, fund transfers or bank balances across schemes, districts, blocks or institutions. By the time utilization reports reach the State and Central level, the data is already historical, significantly limiting its utility. CPSMS will aid in better fiscal deficit management, and to ultimately move to a system of flow of authorization as against the actual flow of funds, whereby banks will first meet the expenses of the implementing agencies and then seek reimbursement from the Central Government.{{cn|date=October 2015}}
MISs based on post facto data feeding suffer from drawbacks of inefficiencies, inconsistencies, gaps and perennial reconciliations, as they are not integrated with the process flow. CPSMS attempts to address this, and the associated issues of transparency and accountability related to the SPV mode of implementation, keeping all the advantages of the mode intact.{{cn|date=October 2015}}
==Modus
The system uses a web-enabled application<ref>[http://cpsms.nic.in CPSMS web portal]{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> developed in the office of Controller General of Accounts,<ref>[http://www.cga.nic.in Website of Controller General of Accounts]</ref> the apex accounting authority of the Government of India under [[Ministry of Finance (India)]]. In the first step, every agency receiving funds is registered on the system, including registration of all the bank accounts of the agency; this information is shared with the respective banks’ [[Core Banking System]] (CBS) for authentication.
== References ==
{{Reflist|2}}
[[Category:Government finances in India]]
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