Bihar Government has introduced the Comprehensive Financial Management System (CFMS) on 1st April, 2019. This system
- AWill make all financial activities in the State online and paperless
- BWill solve the problem of NPA of banks
- CWill ensure effective implementation of State projects
- DWill manage state government finances including local bodies
- ENone of the above / More than one of the above
Show answer and explanation
Correct answer: (a) Will make all financial activities in the State online and paperless
Explanation
The Comprehensive Financial Management System (CFMS) was started in Bihar to strengthen public financial management, digitize related work, promote electronic transactions, and ensure a single, reliable source of data. The system provides effective financial control, tracking, and reliability in reporting within the regulatory and institutional framework. It is noteworthy that for implementing all types of financial activities under the state government, CFMS 2.0 is being implemented from 1 January, 2025 in place of CFMS 1.0. Note—In the given question, instead of “Public Financial Management System”, it should be “Comprehensive Financial Management System”.