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India's Digital Finance Leap: How PFMS Expertise Empowers Global South

India is stepping up as a leader in the Global South by sharing its proven expertise in digital public finance. The government organized a special seminar for diplomats to showcase its successful Public Financial Management System. This system has completely digitized welfare schemes and saved the country a massive amount of money. It's a clear move to build stronger economic partnerships and knowledge sharing with other developing nations.

Key Points: India Shares Public Financial Management Expertise with Global South

  • India's PFMS achieved 100% digitalisation of government schemes and real-time expenditure tracking
  • The system handled over ₹22.85 lakh crore during the pandemic, proving its scalability
  • Direct Benefit Transfers via PFMS have saved the country an estimated ₹1 lakh crore
  • The seminar aimed to build partnerships on digital solutions for financial management across developing nations
3 min read

India steps forward in Global South cooperation by sharing its expertise in Public Financial Management

India hosts seminar to share its digital PFM system success, including ₹1 lakh crore in savings, with Global South nations to foster financial cooperation.

"Taking forward Global South cooperation! A first-of-its-kind seminar on sharing India’s Public Financial Management (PFM) experience was organised... - Randhir Jaiswal, MEA Spokesperson"

New Delhi, December 5

India is taking a significant step forward in Global South cooperation by sharing its expertise in Public Financial Management (PFM).

The Controller General of Accounts (CGA), in collaboration with the Ministry of External Affairs, organised a seminar to showcase India's PFM experience and explore partnerships with countries of the Global South.

Official Spokesperson for the Ministry of External Affairs, Randhir Jaiswal, said that this first-of-its-kind event brought together Heads of Missions and senior diplomatic representatives from Global South countries to discuss digital PFM solutions.

The inaugural session featured addresses by the CGA, the Secretary Department of Economic Affairs, and the Secretary Economic Relations MEA.

"Taking forward Global South cooperation! A first-of-its-kind seminar on sharing India's Public Financial Management (PFM) experience was organised today by the Controller General of Accounts (CGA), DOE @FinMinIndia, in consultation with @MEAIndia. The event brought together Heads of Missions and other senior diplomatic representatives from Global South countries, to discuss advancing partnerships on digital PFM solutions. The inaugural session was addressed by CGA, Secretary Department of Economic Affairs, and Secretary Economic Relations MEA," posted Randhir Jaiswal in X.

India's PFM system, led by the Public Financial Management System (PFMS), has achieved significant milestones, including 100% digitalisation of government schemes and handling over ₹22.85 lakh crore during the pandemic. PFMS has also enabled direct benefit transfers, saving the country ₹1 lakh crore.

The seminar aimed to advance partnerships on digital PFM solutions, fostering cooperation and knowledge sharing among Global South countries.

The Public Financial Management System (PFMS) is a web-based software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, Government of India. PFMS was launched in 2009 to track funds released under all Plan schemes of the Government of India and to provide real-time reporting of expenditure at all levels of Programme implementation, as per the Controller General of Accounts (CGA).

Subsequently, the scope was enlarged to cover direct payment to beneficiaries under all Schemes. Gradually, it has been envisaged that the digitisation of accounts shall be achieved through PFMS, and, beginning with Pay and Accounts Offices' payments, the O/o CGA has further added value by bringing more financial activities of the Government of India within the ambit of PFMS.

The primary function of PFMS today is to facilitate a sound Public Financial Management System for the Government of India by establishing an efficient fund flow system as well as a payment cum accounting network. PFMS provides various stakeholders with a real-time, reliable and meaningful management information system and an effective decision support system, as part of the Digital India initiative of the Government of India, as per the CGA.

- ANI

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Reader Comments

P
Priya S
Great initiative! Digital governance is the future. If our systems can handle 22 lakh crore during the pandemic, it shows real resilience. Hope other countries can adapt these solutions to reduce corruption and leakages in their welfare schemes.
R
Rohit P
While sharing expertise is good, we must ensure our own house is in perfect order first. In rural areas, people still face issues with Aadhaar linking and DBT delays. Let's perfect the system at home while helping others.
S
Sarah B
As someone working in international development, this is significant. India's digital public infrastructure is being recognized as a model. The savings of ₹1 lakh crore through DBT is a staggering figure that gets attention worldwide. Smart diplomacy.
K
Karthik V
Bahut badhiya! This is true 'Vasudhaiva Kutumbakam' (the world is one family) in action. Instead of just giving aid, we are sharing knowledge and building capacity. This creates lasting partnerships. More power to CGA and MEA!
M
Michael C
The scale of India's digital transformation is impressive. Handling that volume of transactions digitally is no small feat. Interested to see how these solutions translate to other developing economies with different challenges.

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