Their present accounting system is broadly modelled on the Nationwide Municipal Accounts Handbook (NMAM), which was drafted in 2004 however its implementation remained patchy.
Emphasizing the pressing want for NMAM 2.0, Murthy mentioned: “With out strong and digital accounting, neither the rising expectations nor the standard of spending could be met with credibility or confidence.”
“Successive central Finance Commissions, starting with the Twelfth, have emphasised that robust and clear city funds should not non-compulsory, they're central to India's progress story,” the supreme audit establishment mentioned in a stamen, quoting Murthy.
The Nationwide City Digital Mission's UPYOG stack is a key step in the direction of progress, he mentioned. UPYOG is a nationwide platform created for the supply of municipal providers on-line, amongst different issues.
“However its potential will solely be realised if municipal accounting techniques hold tempo,” Murthy added.India has virtually 5,000 city native governments internet hosting about 35% of the nation's inhabitants. That is anticipated to rise to 41% by 2031, in accordance with the UN's World Urbanisation Prospects.City areas, although house to one-third of the nation's inhabitants, contribute over two-thirds of its gross home product. That is anticipated to rise to 75% by 2030.
Murthy mentioned the funding for cities by way of centrally-sponsored schemes jumped 500% between 2009-10 and 2020-21. The price range of the housing and concrete affairs ministry has surged over nine-fold since 2009–10, rising at a compounded annual progress charge of greater than 16%. Furthermore, new sources of financing within the type of industrial borrowing and municipal bonds are opening up.
The spike in funding has additionally raised the necessity for strong monetary accounting on the city native governments degree.
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