NEW CAG NORMS ON MANAGING FINANCES

The comptroller and auditor general of India (CAG) has released new guidelines for managing financial assets and liabilities, in an attempt to improve transparency in bureaucratic functioning. In line with the recommendations of the 12th and 13th finance commissions and the second administrative reforms commission, the operational guidelines suggest shifting from the cash -based accounting system to an accrual basis of accounting. The guidelines are aimed at  improving transparency and fixing the accountability of departments for managing state-owned assets.