The recent launch of the Single Nodal Agency (SNA) Dashboard of the Public Financial Management System (PFMS) by the Union Minister for Finance & Corporate Affairs is a major step towards enhancing transparency and accountability in government financial management. This move forms part of the ‘Azadi ka Amrit Mahotsav’ (AKAM) celebrations initiated by the Ministry of Finance. The initiative spans a week, from June 6th to 12th, 2022, during which several training modules for the Department of Expenditure will be launched as part of a broader initiative called Mission Karmayogi.
Mission Karmayogi: Envisaging a Future-ready Civil Service
Mission Karmayogi aims to shape the future of Indian civil servants by fostering creativity, imagination, proactiveness, innovation, progressiveness, professionalism, energy, transparency, and technological adaptability. It seeks to overhaul capacity building measures at individual, institutional, and process levels for effective public service delivery.
Single Nodal Agency Dashboard: A Game-changer in Central Fund Management
Implemented in 2021, the SNA Dashboard represents a major reform in the disbursement and monitoring of funds for Centrally Sponsored Schemes (CSS). Under this revised procedure, each state must identify and designate a Single Nodal Agency (SNA) for every scheme. It ensures timely allocation of funds to states after meeting various stipulations. The model has improved the efficiency of fund utilization and tracking, enabling the pragmatic release of funds and better cash management.
Need for the SNA Model and Its Key Features
The SNA model is important to provide necessary feedback and monitoring tools for stakeholders in the operation of various schemes. The dashboard visually represents data regarding releases made to different states by ministries, further releases made by state treasuries to SNA accounts, expenditure reported by agencies, interest paid by banks to SNA accounts, and more.
Public Financial Management System (PFMS): Ensuring Efficient Fund Flow
PFMS, previously the Central Plan Schemes Monitoring System (CPSMS), is an online software application to monitor government funds. Initially launched in 2009 to track government plan schemes and report expenditure, the scope was broadened in 2013 to include direct payment to beneficiaries under Plan and non-Plan schemes.
In 2017, the distinction between Plan and non-Plan expenditure was abolished. The PFMS is responsible for establishing a robust Public Financial Management System for the Government of India by streamlining fund flow and creating an efficient payment cum accounting network.
Scope and Coverage of PFMS
Currently, the PFMS includes Central Sector, Centrally Sponsored Schemes, other expenditures, and Finance Commission Grants. It provides real-time, reliable, and meaningful management information as well as effective decision support as a part of Digital India initiative of the Government of India. The PFMS is integrated with the core banking system in the country.
