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CAG Directs National Overhaul of Government Accounting
20 Nov
Summary
- CAG mandates uniform government spending categories for Centre and states.
- Standardization to enhance transparency and accountability in public finance.
- Implementation deadline set for the financial year 2027-28.
The Comptroller and Auditor General of India (CAG) has mandated a significant reform in public financial management, directing the Centre and all state governments to implement uniform categories for recording government expenditure. This directive aims to establish consistent accounting and auditing practices across the nation.
The initiative seeks to address the wide variations in expenditure heads at a disaggregated level, which have previously hindered inter-temporal and inter-state comparisons. A working group comprising representatives from the CAG, state governments, and accounts departments developed the common list of 'Object Heads'.
This standardization is expected to enhance transparency and accountability in public financial management. The Union Government and state governments are to adopt this revised structure, with a target implementation date of the financial year 2027-28, marking a notable step in reforming national public expenditure.
