With reference to Public Financial Management System PFMS consider the following statements Governme...........

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With reference to Public Financial Management System (PFMS), consider the following statements.

Government has decided to universalise the use of PFMS to cover all transactions and payments under the Central Sector Schemes.
PFMS can provide real time information on financial resource flows and actual utilization in government schemes.
It is being administered by National Payments Corporation of India (NPCI).

Select the correct answer using the codes below.

1 and 2 only

3 only

2 and 3 only

1, 2 and 3

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Explanation:

Statement 1 and 2: It is an end-to-end solution for processing payments, tracking, monitoring, accounting, reconciliation and reporting. It provides the scheme managers a unified platform for tracking releases and monitoring their last mile utilization. Mandatory use of Public Finance Management System (PFMS) will help monitor the flow of funds to beneficiaries of different government welfare schemes. The actual status of utilization of funds by the multiple implementing agencies of the Central and the State Governments can be known.

Statement 3: The Department of Expenditure is administering the PFMS.

It has tremendous potential to improve programme/financial management, reduce the float in the financial systems by enabling ‘just in time’ releases and also the Government borrowings with direct impact on interest costs to the Government.