STOCK MARKET BSE NSE

New Finance System after AP Budget Bill

CFMS mooted by govt to expedite fund allocation to various depts

Published: 26th March 2015 06:00 AM  |   Last Updated: 26th March 2015 02:59 AM   |  A+A-

VIJAYAWADA: Principal secretary of Finance Department PV Ramesh on Wednesday explained the objectives of the Comprehensive Financial Management System (CFMS) that would replace the existing one, inherited from the British Raj, to the district officials here at the Sub-collector’s Office.

“The government was switching over to the new system to improve transparency in financial transactions, ensure accountability, improve efficiency and so on and so forth,” said Ramesh.

The new system is more relevant as the state has to contend with 48 per cent resources for 60 per cent of population post bifurcation.

He said the new system would come into force after the budget is passed by the AP Legislative Assembly. Under the present system, budget release orders would be issued by the Finance Department to various departments. As soon as the orders reach the head of the department concerned, orders would be issued as to how much money would be spent, in which district and authorisation would be given to the respective district treasury officers. This cumbersome process was taking nearly three months time leading to delay in execution of works. The idea now was to eliminate this delay, he said.

The finance secretary also said that this time different methods were used while preparing the budget to suit the new system. Prior to allocation of funds, all schemes were assessed thoroughly and accordingly funds were allocated.

In the new system, heads of the departments concerned would be able to utilise the funds as soon as the budget release order is issued.

As far as welfare schemes are concerned, the subsidy amounts would reach the beneficiaries’ accounts due to the linkage of the Aadhaar numbers with the bank accounts. Even reconciliation would be done automatically as details relating to funds released and funds spent would be posted online. As there would be no need for writing bills manually, the staff would be relieved of the burden.

Collector Babu A, joint collector G Chandrudu and municipal commissioner G Veerapandian were also present in the meet.

Stay up to date on all the latest Andhra Pradesh news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp