New Delhi, Dec 6 India’s public finance management practices have digital public financial management as its cornerstone, which has enabled substantial fiscal savings, allowing more room for growth-enhancing capital expenditure while maintaining fiscal discipline, according to a senior government official.
Anuradha Thakur, Secretary, Department of Economic Affairs, said that setting up a robust implementation mechanism, through public finance management practices, was as important as having an enabling policy environment.
She spoke about about some of the building blocks of India’s digital public financial management, specifically the Public Financial Management System (PFMS) — India’s unified platform for monitoring fund flows from the Union Government to states, agencies, and beneficiaries on real-time basis.
Speaking at a seminar on sharing India’s PFMS experience for Global South here, the Secretary also emphasised the institutional role of the Civil Accounts Organisation in managing the PFMS platform.
She mentioned that the integration of PFMS with the Digital Payments and Direct Benefit Transfer (DBT) has ensured that subsidies and welfare benefits reach directly to the population thereby minimising leakages and duplication.
These, combined with the digital tools for revenue generation such as e-invoicing, e-way bills and faceless assessments, have widened the tax base and reduced evasion. These measures combined have strengthened revenue flows and helped improve fiscal balance without increasing tax rates.
The Secretary summarised the learnings of India’s fiscal consolidation experience, like rules-based fiscal policy builds discipline and credibility; regular, mandatory disclosures reduce information asymmetries aiding efficient decision making; and Federal Coordination Mechanisms Improve Compliance and alignment of fiscal goals between the federal government and its federating units.
Sudhakar Dalela, Secretary (Economic Relations), commended India’s internationally recognised achievements in Digital Public Infrastructure (DPI) — including identity systems, instant payments, and secure data-sharing layers — that have strengthened accountability and enhanced last-mile governance outcomes.
TCA Kalyani, Controller General of Accounts of India, highlighted India’s long-standing ethos of custodial integrity in public finance and the pivotal role of treasury discipline in governance.
Kalyani emphasised that India’s PFM modernisation is anchored in the principle of “Koshpoorvah Sarvarambhah”—the requirement that every government action must begin with a strong, accountable treasury.
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