Direct Benefits Transfers

Public Finance Management System (PFMS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : PFMS

Mains level : DBT to farmers

  • The Punjab govt has directed all government procurement agencies to link the bank accounts of farmers with the Public Finance Management System (PFMS) portal before the procurement of paddy begins.
  • This has angered the arhatiyas (commission agents), a large number of whom want the government to roll back its decision.

Public Finance Management System (PFMS)

  • PFMS is an online platform developed and implemented by the office of the Controller General of Accounts (CGA) under the Union Ministry of Finance.
  • The PFMS portal is used to make direct payments to beneficiaries of government schemes.
  • In the present case, the idea is to monitor the accounts of farmers to ensure they get the payment for their crops from the arhatiyas, who pay farmers only after selling their produce and receiving the money from the buyers.

Background

  • PFMS initially started as a Plan scheme named CPSMS of the Planning Commission in 2008-09 as a pilot in four States of Madhya Pradesh, Bihar, Punjab and Mizoram.
  • It was for four Flagship schemes e.g. MGNREGS, NRHM, SSA and PMGSY.
  • In December, 2013 the Union Cabinet approved the national roll out of PFMS for all States
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banjara bindas
3 months ago

Db to farmer