Sunday, December 13, 2015

Accounting of Public Spending

Our  honorable chief minister of Delhi, announced a special seven day drive of removing Malba, dust and garbage in case he receives photographs through a special mobile app. Huge amounts were spent on the entire exercise specially on advertisement.  Delhi didn’t see any result and the outcome couldn’t be measured, in the absence of accounting, MIS, proper checks and control and no provision for monitoring of outcome. The Chartered Accountant profession hereby volunteers setting up of the entire system of accounting of public spending including:-
Ø  A transparent pre sanction detailed techno economic feasibility study
Ø  Disclosure of the entire break up of plan, technical specifications, description of BOQ, including standard service level, quality levels  and other terms or condition proposed  to the potential bidders through a transparent electronic public procurement process.
Ø  Post sanction implementation monitoring including accounting, internal control, delegation of powers and record keeping of actual deliveries against the committed deliverable by measurement of actual physical outcome. A regular step by step website disclosure and invitation of public questioning will ensure that BOQ is adhered in letter and spirit.
Public Accounting in a transparent manner and its disclosure to the entire democracy is mandatory for structured and monitor growth. The government has specified detailed disclosure, transparency requirement beside compliances for the private sector. The similar accounting disclosure requirement as well as internal control mechanism is to be put in place for the  Central, State government and local bodies. The various social scheme plan expenditure as well as unplanned expenditure needs to be properly accounted for, Management information system to be put in place with clear cut governance process. In the absence of above, the public funds will always be misused for Example- Education Cess meant for modernization and infrastructure had been mainly spent on mid-day meal for last several years.

The institute of Chartered accountant of India can provide a framework and organise chartered accountant into groups to provide necessary technology including hand holding of the implementation .This will ensure eradication of mad competition in the tendering process and will provide suitable remuneration for professional services  and high quality result to the central government, state government, railways, national highway authority, PSUs  and all other similar initiative & scheme of government. The exercise can be funded to ICAI body for onward CA groups to support the exercise professionally.

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