98%
of total payments of the Government in value terms and 95% in volume terms have
been routed through the e-payment mode
The
Public Financial Management System (PFMS) has helped the Government to
effectively monitor utilization of funds transferred to States and implementing
agencies
Smt. Archana Nigam, Controller General of Accounts (CGA), said
that creation of Indian Civil Accounts Service was a huge reform in the Public
Financial Administration in the country. She was delivering the keynote address
at the 41st Civil Accounts Day function on Wednesday, March 1, 2017
at Vigyan Bhawan, New Delhi to mark the 41st anniversary of the
inception of the Indian Civil Accounts Service (ICAS).
The event marks the 41st anniversary of the creation of
the ICAS by the amendment of the C&AG (Duties, Powers & Conditions of
Service) Act, 1973 w.e.f March 1, 1976. With this major reform in Public
financial administration, the C&AG was relieved of his responsibility of
compiling the Accounts of the Union Government. For discharging the payment,
accounting and internal audit function in the Union Government, the Office of
the CGA was set up in the Ministry of Finance, Dept. of Expenditure with its
field formations in line Ministries/ Departments.
The highlights of the deliberations held on this occasion are as
follows: -
·
Last year at the 40th Civil Accounts Day function, the
Hon’ble President of India was the Chief Guest at the Inaugural Session.
Interestingly, the Hon’ble President of India, who served as the Union Minister
of State for Finance between 1975 to 1977, was one of the key architects of
this reform.
·
Since its inception, the ICAS has been a pioneer in the use of
Information Technology in Payments, Accounting and Financial Reporting catering
to the real time demand for accounting data on public finances by the decision
makers.
·
Introduction of E-payments through the banking system has
facilitated prompt collections and payments. Presently, over 95% of total tax
revenues are through electronic mode. In financial year 2016-17 so far,
Government payments to the tune of Rs 5.95 lakh crore (out of the total payment
of R 6.05 lakh crore) were routed through the electronic mode. 98% of total
payments of the Government in value terms and 95% in volume terms have been
routed through the e-payment mode. The online Non Tax Receipts Portal (NTRP)
that enables a citizen or a corporate entity to make online payment for
availing specific services provided by Departments, has also been
operationalised. The receipts processed through NTRP in 2016 -17 as on date are
to the tune of Rs 90,000 crore and reflect a growth by almost 30 times in terms
of value and 24 times in terms of volume in comparison to 2015-16.
·
The Public Financial Management System (PFMS) has helped the
Government to effectively monitor utilization of funds transferred to States
and implementing agencies, especially in respect of national priority schemes,
through Direct Benefit Transfer (DBT). Beneficiaries of these schemes now
receive funds directly into their bank accounts at the local level.
Consequently, there has been significant reduction in leakages and increase in
savings to the Government. Benefits of automation in the payment processes have
led to further improvements in financial reporting and accounting. All PAOs of
Central Civil Ministries/ Departments are already on board PFMS. Significant
headway has also been made in the area of Treasury Integration. At present 23
states have been integrated. Efforts are on to achieve 100% integration by 31st
March, 2017.
·
A roadmap approved by Finance Secretary for implementing the
accrual accounting suggests pilot runs in civil Ministries in the short term
after necessary capacity building. As convener of Apex Committee headed by
Secretary (Expenditure) for implementation of Accrual basis of accounting, the CGA
would be taking forward transitional steps through pilot studies together with
other Non-Civil Ministries/Departments in a consultative mode. Given the
importance of proper recording and measurement of Assets, the CGA shall be
augmenting the policy for recording and measurement of assets on Cash Basis
also in collaboration with administrative Ministries/Departments for building
up rigorous FRBM related Assets Register based on the these guidelines.
·
The Web Responsive Pensioners’ Service of the Central Pension
Accounting Office has been launched to provide an interface to pensioners and
other stakeholders to information at various stages of the pension process.
·
An MoU has been signed by the office of CGA with the Institute of
Internal Auditors (IIA) –India aimed at strengthening of Internal Audit
function in line Ministries. In a paradigm shift, the MoU will facilitate the
use of professional knowledge and skills in the conduct of Risk based Internal
Audit and in the capacity building of Government Internal Auditors.
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DSM/VKS