Cabinet approves new system to track fund under government schemes

NEW DELHI: The Cabinet today approved the Central Plan Scheme Monitoring System, which aims to set up an online financial management information and decision support system for tracking of funds released under all plan schemes of Government of India.

The system will link financial networks of central, state governments and the agencies of the state governments and will give real time reporting of expenditure at all levels of programme implementation through treasury and bank interface.

"The Union Cabinet today approved the national rollout of the Plan Accounting and Public Finance Management System (PA&PFMS) also known as Central Plan Scheme Monitoring System (CPSMS) over a period of four years till 2017 with a total outlay of Rs 1,080 crore," an official statement said.

The new system provides for a financial management platform for all plan schemes, a database of all recipient agencies, and integration with core banking solution of banks handling plan funds, integration with state treasuries and efficient and effective tracking of fund flow to the lowest level of implementation for Plan schemes of the government.

The CPSMS was started as a Plan Scheme to address this problem, following the Budget Speech of 2008-09 by the then Finance Minister.

After the initial phase of establishing a network across Ministries and Departments, the scheme will be extended for national rollout to link the financial networks of Central, state governments and the agencies of the state governments.

The project organisation structure will comprise the Project Implementation Committee (PIC) at the apex level. The Central Project Management Unit (CPMU) at the centre and State Project Management Unit (SPMU) and District Project Management Units (DPMU) at the state and district levels, respectively.