PMG - Project Monitoring Group

 

MCQ: Project Monitoring Group (PMG) set up by the Government of India in the Cabinet Secretariat is now merged with:   (IRIFM 1001 MCQ) 

1. Expenditure Division of MoF - Ministry of Finance 

2. Infrastructure Division of MoF

3. MoSPI - Ministry of Statistics & Programme Implementation 

4. DPIIT - Dept for Promotion of Industry & Internal Trade

Correct Answer: D 

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🧱 Project Monitoring Group (PMG) 

• PMG is an institutional mechanism to monitor and expedite resolution of bottlenecks in large projects (investment ₹500 crore and above).

• It was set up in 2013 as a special cell in the Cabinet Secretariat, Government of India to address implementation delays in both public and private projects. 

• In 2015, the PMG was brought under the administrative control of the Prime Minister’s Office (PMO) to strengthen its coordination and problem-solving capacity. 

• In February 2019, PMG was merged into Invest India, which functions under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry. 

• PMG now uses a portal and milestone-based monitoring system to track project progress, identify delays, and intervene with ministries or states to resolve issues. 

• It works with central ministries, state governments, and project proponents to reduce time and cost overruns in large infrastructure projects. 

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📌 Invest India – Key Facts

• Invest India is the National Investment Promotion and Facilitation Agency of the Government of India. 

• It was established in 2009 as a not-for-profit venture to promote and facilitate investment into India. 

• It operates under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry. 

• Invest India acts as the first point of contact for investors, helping them understand the Indian market, policies, and clearances required for projects. 

• It hosts multiple government initiatives such as Make in India, Startup India, AGNii, and PMG, bringing them together for coordinated facilitation and monitoring. 

• Within Invest India, PMG’s role is to monitor big projects, resolve issues, and ensure timely completion of key infrastructure initiatives. 

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Key Points for MCQ - PMG: 

1. Stands for Project Monitoring India 

2. Monitors large projects valuing Rs. 500 Crores and above 

3. Set up in 2013

4. Now merged into Invest India, which functions under DPIIT

5. DPIIT stands for Dept for Promotion of Industry & Internal Trade 

6. DPIIT is functions under Ministry of Commerce & Industry 

7. Old name of DPIIT is DIPP - Dept of Industrial Policy & Promotion

8. Invest India - National Investment Promotion & Facilitation Agency of the Govt of India - established in 2019 as a Not for profit venture - operates under DPIIT 

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Pink Book

 

Indian Railways – Pink Book  

• The Works, Machinery & Rolling Stock Programme of IR

• Prepared by the Railway Board & Published Annually 

• It is named Pink Book because of its traditional pink cover used for the publication.  Printing of the Pink Book has been dispensed with.

• Works costing Rs. 50 Crores & above (Previous - Rs. 2.5 Crores) 

• Works below Rs. 50 crore but sanctioned by the Railway Board are typically recorded in the LAW Book (List of Approved Works)

• Pink Book includes:

• Name of work / project

• Total anticipated cost

• Outlay for the current financial year (budget grant)

• Balance to complete the work

• Acts as a guide for expenditure planning and execution of sanctioned projects across the Railway network. 

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GASAB - Government Accounting Standards Advisory Board

 

GASAB   

• GASAB stands for Government Accounting Standards Advisory Board

• Constituted by the Comptroller and Auditor General of India (CAG) on 12 August 2002.

• Acts as the nodal advisory body for setting government accounting and financial reporting standards in India.

• Established to improve governance, fiscal prudence, efficiency and transparency in public sector financial reporting.

• Helps the government move from rule-based cash accounting to principle-based accrual accounting.

Types of Standards Prepared

• Indian Government Accounting Standards (IGAS):
  For cash basis government accounting – these become mandatory once notified by the Government.

• IGAS 1: Guarantees given by Governments – Disclosure Requirements

• IGAS 2: Accounting and Classification of Grants-in-Aid

• IGAS 3: Loans and Advances made by Governments

• IGAS 4: Prior Period Adjustments (rectifying past errors)
  Other IGAS under consideration include Foreign Currency transactions, Public Debt and Other Liabilities.

• Indian Government Financial Reporting Standards (IGFRS):
  For accrual basis accounting – issued initially as recommendatory for pilot studies and future rollout.

• IGFRS 1: Presentation of Financial Statements

• IGFRS 2: Property, Plant and Equipment

• IGFRS 3: Revenue from Government Exchange Transactions

• IGFRS 4: Inventories

• IGFRS 5: Contingent Liabilities and Contingent Assets

Structure of the Board

• Chairperson: Deputy C&AG (Government Accounts)

• Member Finance, Indian Railways 

• Secretary level officers from Department of Telecom, Department of Post

• Controllers General (Accounts; Defence Accounts)

• Officials from Ministry of Finance and Reserve Bank of India

• Finance Secretaries of four States (rotational)

• President of Institute of Chartered Accountants of India or nominee

• Director General/Principal Director (Government Accounts) as Member Secretary

Core Responsibilities

• Establish and improve government accounting standards.

• Propose standards to make financial reports more useful.

• Keep standards updated with changes in governmental environment.

• Provide implementation guidance.

• Promote common understanding of financial reporting.

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GASAB and Indian Railways – Link & Context

• Indian Railways has representation on GASAB via the Member Finance (Railways).

• Railways is a major government entity with complex assets, liabilities, operating revenues and expenditures – making quality reporting essential.

• GASAB’s accrual standards provide a framework to help Railways move towards modern financial reporting.

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Accrual Accounting – What & Why

• Accrual Accounting records transactions when they occur, irrespective of cash movement:

• Records assets and liabilities alongside revenue and expenses.

• Provides a complete and transparent view of an organization’s financial position.

• Recommended by the Twelfth Finance Commission for improved government financial reporting.

• GASAB was asked to develop a road map and operational framework for implementation.

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Progress in Implementation

• IGFRS (accrual standards) have been issued for pilot use but are not yet mandatory nationwide.

• Indian Railways has initiated preparatory reforms, including:

• Asset valuation and accounting system enhancement.

• Developing accrual-compatible accounting practices.

• Training staff and piloting certain accrual reporting elements.

• Full accrual adoption across Indian Railways remains in progress, not fully implemented yet.

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Key Points for MCQ

• Founded: 12 August 2002.

• Founded by: Comptroller and Auditor General of India.

• Main Aim: Improve government financial reporting and accountability.

• Two Standard Types:

• IGAS = Cash basis standards

• IGFRS = Accrual basis standards (pilot/recommendatory)

Standards – Numbers to Remember

• IGAS 1–4 (notified or under govt. consideration).

• IGFRS 1–5 (for accrual reporting pilots).

• Indian Railways represented on GASAB.

• Railways is among main government departments preparing for accrual accounting.

Accrual Accounting

• Recommended by Twelfth Finance Commission.

• GASAB to design road map and accrual framework.

• Status: Draft standards issued, full implementation pending.

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📌 Quick Recap:

• GASAB = Accounting standards board for government.

• IGAS = Mandatory cash standards; IGFRS = Accrual standards (recommendatory).

• Indian Railways is actively involved but full accrual accounting is still being phased in.

GASAB  - Revision sheet 

1. What is GASAB?
➡️ Government Accounting Standards Advisory Board – nodal advisory body for government accounting standards. 

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2. When was GASAB constituted?
➡️ 12 August 2002 by the Comptroller and Auditor General of India.

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3. Aim of GASAB?
➡️ Improve transparency, accountability & quality in government financial reporting. 

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4. Two types of standards developed by GASAB?

➡️ IGAS – Indian Government Accounting Standards (cash basis)
➡️ IGFRS – Indian Government Financial Reporting Standards (accrual basis)

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5. IGAS – Mandatory or Recommendatory?

➡️ Mandatory once notified by Government.

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6. IGFRS – Mandatory or Recommendatory?
➡️ Recommendatory initially for pilot studies; mandatory only after government notification. 

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7. IGAS Notified Standards (Key Numbers)

➡️ IGAS 1: Guarantees given by Governments – Disclosure Requirements
➡️ IGAS 2: Accounting and Classification of Grants-in-Aid
➡️ IGAS 3: Loans and Advances made by Governments
➡️ IGAS 4: Prior Period Adjustments 

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8. IGFRS Standards (Draft / Under Consideration)

➡️ IGFRS 1: Presentation of Financial Statements
➡️ IGFRS 2: Property, Plant & Equipment
➡️ IGFRS 3: Revenue from Government Exchange Transactions
➡️ IGFRS 4: Inventories
➡️ IGFRS 5: Contingent Liabilities & Contingent Assets 

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9. Governing Article of Constitution for GASAB
➡️ Article 150 – accounts of Union and States kept as prescribed by President on CAG’s advice. 

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10. Key Member Relevant to Indian Railways
➡️ Member Finance, Railways as GASAB member.

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11. Implementation Status of Accrual Accounting
➡️ IGFRS issued, used for pilot/experiments.
➡️ Full accrual adoption not yet mandatory.

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12. Important Commission Recommendation
➡️ Twelfth Finance Commission recommended accrual accounting reform; GASAB drew roadmap framework.

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13. Cash vs Accrual Accounting – Quick Fact
➡️ Cash basis: records when cash moves.
➡️ Accrual basis: records when transaction occurs (including assets & liabilities).

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14. Importance for Exams
✔️ GASAB = Government Accounting Standards Advisory Board  

✔️ IGAS 1–4 notified (cash).
✔️ IGFRS 1–5 recommendatory (accrual).
✔️ Indian Railways represented in GASAB.
✔️ Full accrual adoption ongoing, not complete.

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