PFMS was earlier known as:
Last updated Jun 23, 2026
Correct Answer:
Option B —
central plan scheme monitoring system
The Public Financial Management System (PFMS) was rebranded from its original name, CPSMS, in 2013 to reflect its expanded scope of tracking and managing all government expenditures, rather than just specific "plan" schemes.Understanding PFMS
PFMS is a web-based software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance.
Original Purpose (CPSMS): It started in 2009 as a pilot in four states (Madhya Pradesh, Bihar, Punjab, and Mizoram) to track funds released under the Central Plan Schemes of the Government of India.
Current Role (PFMS): It now serves as a robust platform for:
Direct Benefit Transfer (DBT): Ensuring subsidies and payments go directly to the bank accounts of beneficiaries.
Real-time Monitoring: Tracking the utilization of funds by various implementing agencies.
Transparency: Reducing "float" in the system (money sitting idle in bank accounts) and preventing leakages.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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