# PFMS is a financial management platform for all plan schemes both Central government schemes and State government Schemes.
# PFMS works under the office of Controller General Of Account ,Ministry Of Finance.
History Of PFMS :
# PFMS started as a pilot project named CPSMS of the planning commission in 2008-2009 in four states of Madhya Pradesh,Bihar ,Punjab and Mizoram.
#It started its works for managing fund flow in four flagship schemes namely MGNREGS, National Rural Health Mission,Sarva Shiksha Abhiyan and Pradhan Manthri Gram Sadak Yojana.
# 12th planning Commission decided to undertake national level roll out of PFMS to link financial networks of central ,state governments and agencies of state government.
# In 2013 ,Union Cabinet approved national roll out of PFMS for all states and schemes for a period of 4 years ie till 2017.
Functions Of PFMS :
# PFMS provides database for all schemes ,its fund flow etc.
# PFMS also integrated with core banking solution and state treasuries for handling plan funds .
#In a simple way,PFMS provide a efficient and effective way of tracking of fund flow to the lowest level of implementation for all planned scheme of the government .
# It provide information regarding fund utilization of all plan schemes and thus it enhance public accountability in the implementation of all plan schemes.
#This system results in transparency in public expenditure and also provides real time information on resource availability and utilization across scheme.
How PFMS Works :
PFMS mandates registration of all the agencies such as PSU,statutory bodies etc ,treasuries and also integration with core banking solution.If a scheme is implemented by state government through a state government agency,a code is given to that particular scheme.Once the code generated,all the information related to that scheme is stored and fund flow and fund balance will be calculated by PFMS .