Finance Minister Nirmala Sitharaman has urged civil accounts officials to make the government’s annual accounts more accessible and user-friendly for citizens. Speaking at the 49th Civil Accounts Day event on March 1, she emphasized the role of digital integration in improving financial transparency and efficiency.
At the event, Sitharaman highlighted how the 'just-in-time' release of funds through the Public Financial Management System (PFMS) has helped control borrowings and reduce interest costs. She praised the Indian Civil Accounts Service (ICAS) officers and the Controller General of Accounts (CGA) for driving a "silent technological revolution" that has streamlined financial operations for states.
"I would also like you to examine, in consultation with the CAG (Comptroller and Auditor General), whether it would be possible to make the Annual Accounts more approachable and user-friendly and allow citizens to analyze easily and generate customizable and simpler reports," Sitharaman said.
She stressed that since significant digital integration has already taken place with states, further research could be conducted using the available data. Making reports more accessible, she noted, could boost public interest in government financial management.
Sitharaman also directed the Expenditure Department and CGA to ensure the smooth rollout of the SNA-SPARSH system for all schemes in the upcoming financial year. "CGA should handhold states in seamless onboarding and transition to SNA-SPARSH and convince them about the benefits of this reform for quick adoption," she said.
PFMS, developed by the CGA under the Department of Expenditure, serves as a digital financial platform that ensures end-to-end payments, receipt collection, and accounting. The system enables effective cash management through real-time fund transfers and tracking of disbursements.
The SNA module, introduced in 2021-22, enhances monitoring of funds allocated to states under Centrally Sponsored Schemes (CSS). Currently covering 141 CSS and nearly 5,000 state-linked schemes, the module has facilitated the release of over ₹13.60 lakh crore. It has also helped save more than ₹11,000 crore in interest costs, while the Treasury Single Account System (TSA) has saved ₹15,000 crore since 2017-18.
"Just-in-time fund releases have helped us ensure that we don't borrow more than what we need. It has also given us an advantage in reducing the burden on future generations," Sitharaman said.
She urged Civil Accounts Officers to enhance public awareness about the efficient use of taxpayer money. "Every rupee is taken seriously, and therefore, public engagements should highlight that this is the most critical job for the country's finances, not just for the Government of India," she stated.
Reflecting on her July 2024 Budget speech, Sitharaman reiterated the need for improved data governance using digital tools, a role where the CGA could contribute significantly due to PFMS's vast data repository. She described PFMS adoption as a "silent technological revolution" that has eased financial operations for states and strengthened cooperative federalism.
(With inputs from PTI)