Mar 02, 2017

98% of government payments in 2016-17 made digitally, says CGA

BYDream Notion

Controller General of Accounts (CGA) Archana Nigam said that 98% of the total government transactions in the current fiscal, pegged at Rs 6.05 lakh crore in terms of value, happened through the digital route.
“In financial year 2016-17 so far, government payments to the tune of Rs 5.95 lakh crore (out of the total payment of Rs 6.05 lakh crore) were routed through the electronic mode. Ninety-eight per cent of total payments in value terms and 95% in volume terms have been routed through the e-payment mode,” Nigam said at the 41st Civil Accounts Day function in New Delhi on Wednesday.
“Introduction of e-payments through the banking system has facilitated prompt collections and payments,” she added.
Nigam said the Public Financial Management System (PFMS) has helped the government effectively monitor utilisation of funds transferred to states and implementing agencies, especially with respect to 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,” she said.
Nigam said, “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 March 31.”
The Indian Civil Accounts Service (ICAS) was created by the amendment of the CAG (duties, powers and conditions of service) Act, 1973, on March 1, 1976.
With this major reform in public financial administration, the Comptroller and Auditor-General of India (CAG) was relieved of the responsibility of compiling the accounts of the central government.
For discharging the payment, accounting and internal audit function in the Union government, the office of the CGA was set up.

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Dream Notion is a writer of FactorDaily.