Indefinite parking of govt funds impedes growth: Jaitley

Union Finance Minister Arun Jaitley on Wednesday said states cannot indefinitely park government funds without utilising them.

The statement comes in the wake of the approaching deadline for states to join the Public Finance Management System (PFMS), which links their treasuries with a digital platform and monitors the implementation of financial schemes.

“You cannot have an indefinite parking of government money at various ends. This not only leads to inefficiency, but also impedes growth,” Jaitley said at the inauguration of the new Controller General of Accounts (CGA) building.

The prime minister’s office hopes to link majority of the states’ treasuries with PFMS by next month and complete the process with the 36 states and Union Territories by March next year. But some Opposition-ruled states have raised objections to the move, with West Bengal Chief Minister Mamata Banerjee terming it an intrusion into the state’s domain.

PFMS is a web-based online software application developed and implemented by CGA. It seeks to effectively manage public finances and provide stakeholders with real-time information on the implementation of centrally sponsored schemes in the states.