The strategy paper on Public Financial Management (PFM) in India highlights the need for improved fiscal management and transparency across all levels of government. Despite various reforms, including digitization of financial systems, significant challenges persist in achieving seamless information flow and effective management of public funds. The primary issue identified is the fragmentation of information across multiple government systems, which hampers efficient decision-making and increases costs.

To address these challenges, the paper proposes the adoption of standardized fiscal events and a data exchange platform, the India Financial Information Exchange (iFIX). This approach aims to create interoperability between different financial systems, providing real-time visibility into fund flows, enhancing revenue mobilization, and improving expenditure management. By integrating fiscal and service events, iFIX facilitates better planning, budgeting, and auditing, ensuring more effective governance.

The strategy also emphasizes the importance of inclusive budgeting and participatory governance, enabling local governments and other stakeholders to have a greater role in financial decision-making. The adoption of these reforms will lead to more efficient public service delivery, reduced administrative burden, and increased accountability, ultimately contributing to India's broader economic and social development goals.

To explore the full strategy and detailed recommendations, download and read the complete strategy paper to understand how India is reimagining its public financial management landscape for better governance and enhanced public welfare.